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New York MCA offer checker

Put in the numbers from a merchant cash advance offer in front of you. The tool works out what it really costs per year, flags the terms worth questioning, and checks your paperwork against what New York’s Commercial Finance Disclosure Law requires a funder to show you before you sign.

By Solomon Wiesen, founder and editor · Editorial standards · Disclosure

01The offer

$

$

$

$
Payments are taken

$

Deposits or card sales per month. Used to check whether the payments are affordable.

%

months

$

If part of the funding goes to pay off an existing advance.

Estimated APR
--%
Waiting for numbers
Enter the funding, payback and payment amount to see the true annual cost.
Finance charge--
Cash to you--
Factor rate--
Estimated term--
Estimated monthly cost--
Share of monthly revenue--
Assumes equal payments, no reconciliations and no missed payments. APR solved from the payment schedule, the way New York requires lenders to disclose it.
02 / Before you sign

What to look at before you sign

    03 / The disclosure

    Does your disclosure include all of this?

    New York rule 23 NYCRR 600.6 sets out what a sales-based financing disclosure must show. Tick each item you can find on your paperwork.

    0 of 0

    Not sure about this offer?Tell us about your business and we will connect you with a financing partner who can show you an alternative before you commit. We are paid by our partner for referrals; see our disclosure.

    Estimates only. Funders calculate the disclosed APR and term from their own projection of your future sales, so their numbers can differ from ours for legitimate reasons. We assume equal payments with no reconciliations or missed payments. New York’s disclosure rules cover offers of $2.5 million or less. This tool is for information and is not legal or financial advice; for a specific contract, talk to a New York attorney. Source: 23 NYCRR Part 600, New York State Department of Financial Services.

    How to use it

    Three numbers are enough to start

    01

    Enter the funding, the payback and the payment. The funding is the headline advance. The payback is the total you repay, or switch to factor rate if that is what your offer shows. The payment is the amount the funder pulls each business day, day, week or month.
    02

    Add fees and your monthly revenue. Fees taken out of the funding raise the real cost, so include origination, underwriting and admin charges. Monthly revenue lets the tool check whether the payments leave enough room for rent, payroll and a slow month.
    03

    Compare it with your disclosure. Open the disclosure section and type in the APR and term the funder printed. If their APR is far below the payment math, or their term is far longer, ask what sales projection they used before you sign.
    Why the APR matters here

    New York makes funders show the annual cost

    Since August 2023, New York has required providers of commercial financing of $2.5 million or less, including merchant cash advances, to give a standardized disclosure when they make a specific offer. For sales-based financing like an MCA, that disclosure has to include an estimated APR, the finance charge, the estimated total payment, the estimated payment and term, the prepayment terms and any collateral requirements. Brokers who present an offer have to pass the funder’s disclosure along and say in writing how they are paid.

    Because an advance is repaid from future sales, the funder estimates the APR from its own projection of your revenue. That is allowed, but it means two disclosures for the same deal can show different numbers. A projection that assumes slower sales stretches the estimated term and makes the APR look lower. Running your own numbers here shows you how wide that gap is.

    The rules are in 23 NYCRR Part 600, published by the New York State Department of Financial Services. Our plain English guide is New York’s Commercial Finance Disclosure Law, explained.

    Questions

    Common questions about the checker

    Why is my APR so much higher than the factor rate?

    A factor rate is a flat charge with no time attached. A 1.35 factor repaid in seven months costs the same dollars as one repaid in eighteen months, but the shorter one is far more expensive per year. APR puts the cost on a yearly basis so you can compare it with a loan.

    Why does the funder’s APR differ from this one?

    Funders estimate payments and term from a projection of your sales, and some contracts adjust payments through reconciliation. This tool assumes the fixed payment you enter keeps coming until the balance is paid. A small gap is normal; a large one is a question to ask.

    Does the disclosure law apply to my offer?

    It covers specific offers of commercial financing of $2.5 million or less made to recipients in New York, with some exemptions, such as certain banks. If you are unsure whether your provider is covered, ask them directly or check with a New York attorney.

    Is this legal or financial advice?

    No. It is an estimate built from the numbers you enter and a summary of the published rules. For a specific contract, especially a renewal or anything with a confession of judgment, talk to a New York attorney.

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