Back to All Articles
Finance Guides
Understanding the Costs of Merchant Cash Advances
James SterlingSenior Commercial Finance Broker
Updated: 08 Oct 20266 min read
A transparent breakdown of factor fees, total payback figures, split percentages, and why a fixed fee does not mean a product is inexpensive.
1. What Is a Factor Fee?
A factor fee represents the fixed funding charge agreed between lender and business. If you borrow £10,000 at a 1.22 factor, your total payback is £12,200. No compounding interest is added.
Explore Funding Options for Your Business
Get an obligation-free quotation tailored to your trading turnover. Soft search review only.
Independent UK Commercial Brokerage
Ready to Explore Your Business Funding Options?
Speak with Merchant Business Advance about finance solutions that may suit your business.
Free no-obligation enquiry • Soft search check • Direct UK specialist advice