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Question: How long does it take to pay off a Merchant Cash Advance?

Answer: There is no set time period with a Merchant Cash Advance and it’s for the same reason we can’t call our “rate” (or “discount” as we prefer to refer to it as) an “interest rate”. The reality is we can’t be sure how long the advance will take to pay off because it’s based on a percentage of your sales.

As most business owners know, there are a lot of factors that can effect your sales. This year, the clothing industry saw an exceptionally late start to the summer here in BC. This meant that even though retail clothing store had bought and paid for their summer inventory, the customers weren’t ready to buy! Granted, they’ve certainly made up for lost time with the late summer carrying through into October.

Those of you in Toronto are familiar with the St. Clair street car track renovation on Toronto, Ontario which caused many of the small businesses operating along the once busy street to have their sales drastically reduced – and for much longer than anyone expected!

The point being that sometimes, no matter how much hard work and energy you put into your business that city work, weather and the economic climate in general can effect what happens to your sales. Merchant Cash Advance providers make a prediction on how long an advance will take to pay off but there are no guarantees and no penalties for it taking longer than anticipated!

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