Sample analysis
This is a sample report. Upload your own MCA contract to get a personalized analysis.
Analyze your contract →Effective APR: 127.4%
This sample contract shows a $25,000 advance with a 1.28 factor rate and a high effective APR. The agreement includes a confession of judgment and personal guarantee, which increase risk. Daily holdback is 12% of card sales.
Key Financial Terms
Funded Amount
$25,000
Payback Amount
$32,000
Factor Rate
1.28x
Daily Payment
$420
Est. Term
4 mo
Effective APR
127.4%
Contract Clauses
The contract contains a confession of judgment clause that can allow the funder to obtain a judgment without a court hearing.
The business owner is personally liable for repayment.
The contract restricts taking additional MCAs or similar financing during the term.
Red Flags (3)
Confession of judgment present
You may waive notice and hearing before a judgment is entered against you.
Personal guarantee required
Your personal assets may be at risk if the business cannot repay.
Effective APR over 100%
The annualized cost of this advance is very high compared to traditional loans.
Recommended Actions
- Explore better options through our lender network; for legal questions, consult a business attorney.
- Request removal or limitation of the confession of judgment if possible.
- Compare this offer with other funding options and calculate true cost.
Get your own free report
Upload your MCA contract for a personalized analysis in under 30 seconds.
Analyze your contract