1. What is Upwise Capital Cash Advance?

Upwise Capital Cash Advance (MCA) is a financing solution where businesses receive an upfront sum of capital in exchange for a percentage of future sales or fixed daily/weekly payments. It provides quick access to funds for business growth and operational needs.

2. How Does the Calculator Work?

The calculator uses the MCA repayment formula:

Where:

• \( Advance \) — The cash advance amount received
• \( Factor\ Rate \) — The factor rate (typically 1.1-1.5)
• \( Months \) — The repayment period in months

Explanation: The factor rate determines the total repayment amount, which is then divided by the number of months to calculate the monthly payment.

3. Importance of MCA Repayment Calculation

Details: Accurate repayment calculation helps businesses understand their financial obligations, plan cash flow effectively, and assess the affordability of the cash advance before committing to the agreement.

4. Using the Calculator

Tips: Enter the advance amount in dollars, the factor rate as a decimal (e.g., 1.2 for 20% premium), and the repayment period in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical factor rate range?
A: Factor rates typically range from 1.1 to 1.5, meaning you repay 110% to 150% of the advanced amount.

Q2: How does MCA differ from traditional loans?
A: MCAs are based on future sales rather than credit history, have faster approval, but typically higher costs than traditional loans.

Q3: Are there any additional fees?
A: Some providers may charge origination fees, processing fees, or other administrative costs beyond the factor rate.

Q4: What happens if sales decrease?
A: Most MCAs have fixed payments, so decreased sales won't lower your payment amount but may make it harder to meet obligations.

Q5: Can I pay off the MCA early?
A: Some providers allow early repayment, but there may be prepayment penalties or the factor rate may not be reduced.