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Merchant cash advance
MCA Hidden Fees: Don't Get Scammed
Expose the hidden fees that can double your MCA cost. Learn exactly what to look for, which fees are legitimate, and how to protect yourself from predatory pricing tactics.
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Common Hidden Fees
Processing / Origination Fees
1.20 – 1.45
UCC Filing Markups
$100 – $500+ (watch for inflated charges)
Monthly Maintenance Fees
$50 – $250/mo (often buried in terms)
Early Payoff Penalties
No discount or extra payoff fee (read payoff clause)
CALCULATE REAL COST
True Cost Calculator
See how hidden fees inflate your total cost beyond the advertised factor rate.
COMPLETE FEE BREAKDOWN
Every MCA Fee Explained
What's legitimate vs what's a red flag — a detailed breakdown of every fee you might encounter.
Factor Rate
Typical: 1.20 – 1.45
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What it is
The multiplier applied to your advance to determine total repayment amount
Typical range:
1.10 – 1.45 (lower is better)
Often hidden
RARELY
Usually disclosed upfront, but can be misrepresented as "low cost" without showing APR equivalent
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Red Flags
Factor rate over 1.50 (extremely expensive)
Provider won't disclose factor rate until you sign
Rate changes between quote and contract
APR equivalent not disclosed (can be 40-200%+)
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Questions to Ask
What is the exact factor rate?
What is the APR equivalent?
Is this rate guaranteed in the contract?
Are there any conditions that could increase the rate?
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DEMAND — Always get factor rate in writing before signing
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Origination Fee
Typical: 0 – 5%
What it is
One-time fee charged for setting up the advance, calculated as percentage of advance amount
Typical range:
0 – 5% of advance ($0 – $2,500 on $50K)
Often hidden
SOMETIMES
Often rolled into factor rate or listed separately in fine print of contract
Red Flags
Origination fee over 5%
Fee charged AND high factor rate (double-dipping)
Not disclosed until final paperwork
Deducted from advance but not mentioned upfront
Questions to Ask
Is there an origination fee?
What percentage of the advance?
Is it already included in the factor rate?
Can it be negotiated or waived?
NEGOTIATE — Acceptable if under 3% and disclosed up front
Processing Fee
Typical: $500 – $2,000
What it is
Fee charged for reviewing and processing your application and documents
Typical range:
$500 – $2,000 flat fee
Often hidden
OFTEN
Added to final contract only, or buried in closing documents
Red Flags
Processing fee over $500
Fee charged before funding is confirmed
Stacked on top of origination fee
Non-refundable if deal doesn't close
Questions to Ask
Is there a processing fee? How much?
Why is it separate from origination?
Is it refundable if I don't accept the offer?
Why isn't this included in the factor rate?
WALK AWAY — if over $500 or charged before funding
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Wire Fee
Typical: $25 – $75
What it is
Fee charged for wiring funds to your bank account instead of ACH transfer
Typical range:
$25 – $75 per wire
Often hidden
SOMETIMES
Deducted from advance at funding, sometimes not mentioned in contract
Red Flags
Wire fee over $100
Multiple wire fees for single advance
Mandatory wire when ACH is available
Fee not disclosed until funds arrive short
Questions to Ask
What is the wire transfer fee?
Can I receive funds via ACH instead?
Is this fee mandatory or optional?
Is it deducted from my advance amount?
OK — if under $75 and disclosed upfront
UCC Filing Fee
Typical: $75 – $300
What it is
Fee for filing a UCC-1 lien against your business assets (standard security measure for MCA providers)
Typical range:
$25 – $75 per wire
Often hidden
SOMETIMES
Included in closing costs or deducted from advance without itemization
Red Flags
UCC fee over $300 (actual cost is much lower)
Multiple UCC fees for single transaction
Fee charged but no UCC actually filed
UCC removal fee not disclosed upfront
Questions to Ask
What is the UCC filing fee?
What does this actually cost to file?
Will you provide proof of filing?
Is there a fee to remove the UCC after payoff?
LEGITIMATE — but verify actual filing cost is reasonable
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Monthly Fee
Typical: $50 – $150/mo
What it is
Recurring monthly servicing or maintenance charge added on top of your regular payments
Typical range:
$50 – $150 per month
Often hidden
VERY OFTEN
Buried deep in contract terms, not mentioned in marketing materials
Red Flags
Any monthly fee whatsoever (not standard)
Called "maintenance" or "servicing" fee
Charged every month until fully paid
Not included in factor rate calculation
Questions to Ask
Are there any monthly fees?
What is this fee for?
Why isn't this included in the factor rate?
How many months will I be charged?
REFUSE — Monthly fees are NOT normal for MCAs
Early Payoff Penalty
Typical: 5 – 20% of balance
What it is
Penalty fee charged if you pay off your MCA before the expected timeline
Typical range:
5 – 20% of remaining balance
Often hidden
VERY OFTEN
Fine print in contract, often called "reconciliation fee" or "early settlement fee"
Red Flags
Any penalty for paying off early
No discount for early payoff (you pay full amount regardless)
Penalty over 10% of remaining balance
Not disclosed until you try to pay off
Questions to Ask
Is there a penalty for early payoff?
Do I get a discount if I pay off early?
What percentage of the balance is the penalty?
Can I see this term in writing before signing?
WALK AWAY — Standard MCAs should offer early payoff discounts
Application Fee
Typical: $0 (should be free)
What it is
Upfront fee charged just to submit or review your application
Typical range:
$0 – Never pay upfront fees
Often hidden
SOMETIMES
Requested before approval, often called "underwriting fee" or "due diligence fee"
Red Flags
ANY fee before approval and funding
Called "underwriting" or "review" fee
Non-refundable if not approved
Pressure to pay quickly to "secure your rate"
Questions to Ask
Do you charge any upfront or application fees?
When are fees collected?
Are fees refundable if I'm not approved?
Why do you need payment before funding?
REFUSE — Never pay upfront fees. This is a scam.
WARNING SIGNS
Red Flag Checklist
Critical warning signs that indicate predatory pricing or scam attempts.
Contract Red Flags
Blank spaces or "TBD" in final contract
Pressure to sign immediately
Contract differs from original quote
No itemized fee breakdown
Verbal promises not in writing
Fee Red Flags
Fees not disclosed until final paperwork
Origination + processing + monthly fees stacked together
Total fees exceed 10% of advance amount
Fees deducted from advance but not mentioned
Any upfront fees before funding
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Behavior Red Flags
Provider refuses to explain fees in detail
Limited time offer" pressure tactics
Won't provide written quote before application
Aggressive sales tactics or threats
Unlicensed or unverifiable company
PROTECTION STRATEGIES
How to Protect Yourself
Practical steps to avoid hidden fees and predatory MCA providers.
Get It In Writing
Request written quote before applying
Get itemized fee breakdown
Never accept verbal promises
Save all emails and documents
Read the Contract
Read every page before signing
Check for blank spaces or "TBD"
Compare contract to original quote
Have attorney review if unclear
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Calculate True Cost
Add up ALL fees (not just factor rate)
Calculate true APR equivalent
Compare total cost across providers
Use calculator tools to verify
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Ask Questions
Ask about every line item
Question fees that seem high
Request justification for each charge
Walk away if answers are evasive
Compare Providers
Get quotes from 3-5 providers
Compare total cost, not just rate
Check reviews and BBB ratings
Verify licensing and legitimacy
Negotiate
Use competing offers as leverage
Ask for fee waivers or reductions
Negotiate lower factor rate
Request better holdback terms
Common Questions
Frequently asked questions
Get answers to the most common questions about our financing platform and process.
Clear answers before you apply. No credit impact during pre-screening.
What types of businesses qualify for financing?
We facilitate financing for businesses across all major industries and business structures. Qualification criteria vary by lender and product type, but generally include minimum revenue thresholds, time in business, and creditworthiness standards. Our advisors assess your specific situation to identify appropriate financing options.
What is the typical timeline from application to funding?
Preliminary decisions are typically delivered within 24 hours of completed application submission. Final approval and funding timelines vary by product type and lender requirements. Alternative financing products often fund within 3-7 business days, while SBA loans typically require 2-4 weeks due to government underwriting processes.
What credit profile is required for approval?
Credit requirements vary significantly by lender and product type. Traditional bank products typically require personal credit scores of 680 or higher, while alternative lending partners may approve businesses with scores as low as 600. We evaluate your complete financial profile to identify lenders aligned with your credit standing.
What fees does BestLoanUSA charge?
BestLoanUSA does not charge upfront application fees or consultation fees. Any fees associated with specific loan products are charged directly by the lending institution and are fully disclosed prior to loan acceptance. We maintain complete transparency regarding all costs throughout the process.
How do bank and non-bank lenders differ?
Traditional banks typically offer lower interest rates but maintain stricter qualification criteria and longer approval timelines. Non-bank lenders provide faster decisions with more flexible underwriting but may charge higher rates. Our platform provides access to both, allowing you to evaluate the full spectrum of available options.
What are the borrowing limits?
Available capital ranges from $10,000 to $10 million or more, depending on product type, business financial strength, and lender criteria. During the application review process, our advisors help determine appropriate loan amounts based on your stated needs and qualification parameters.
Ready to Get Started?
Access the capital your business needs
Comprehensive financing solutions backed by expert advisory guidance. One application, multiple lender options, transparent terms.
Secure & confidential
No credit impact
Advisor-led process
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