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True Cost Calculator: what a cash advance actually costs you.
They gave you a factor rate. 1.35 sounds like 35 percent. It is not. You start paying it back on day one, so you never hold the whole amount. Answer four questions. See the real number.
The real rate
You pay - to use - for -. That is - every business day.
Same money on a bank line at 13%
It costs you - to borrow. The payment is - a month.
You would keep
To clear a 30% gross margin
The work this money funds has to bring in at least -. That is - back for every dollar they gave you.
These numbers are an example built from what you typed. They are not a quote and not an offer of credit. TrueSpark Financial does not give tax, legal or accounting advice.
Show the work
How we got this number
A factor rate multiplies. It does not spread out over time. You start paying on day one, so you never hold the full amount for the full term, and that is why the real rate lands so far above the number you were quoted.
We line up the actual cash: what hit your account, then every payment that leaves it. Then we solve for the one rate that makes those payments add up to the money you got, and put it on a yearly basis. The bank line uses the same amount over the same months at a rate typical for your credit, so the only thing that changes is the price.
If that number stung
Expensive money is a fixable problem.
You are not a bad risk. You are a busy contractor whose bank hit its limit on you, and you took fast money to keep the crews working. It did its job. Now it is a tax on every job after it.
Send us the contract and three months of bank statements. We will tell you straight whether moving it saves you money or whether you should ride it out. If riding it out is the right call, we will say so.
Soft pull on the first look, so checking costs you nothing and moves no score. Desk is open 8 to 6 weekdays and 9 to 2 Saturday, central time.