Find the real cost of your business funding offer.
Merchant cash advances quote a tiny "factor rate" that hides a triple-digit APR. Upload the offer and we translate it into an estimated effective APR and flag the clauses that can take your business — confession of judgment, daily ACH, blanket liens, and personal guaranties — each tied to a quote from the document.
- See the real APR behind the factor rate
- Free preview first — unlock the full report for $40
- Covers MCAs, business loans, lines of credit, and promissory notes
Last reviewed: May 26, 2026 by the BizLeaseCheck Editorial Team. General information, not legal advice.
Business Funding / MCA Analysis
A representative business funding / mca sample report — danger score 97/100, 8 red flags with verbatim evidence quotes, no signup needed.
Compare: AI vs. a business-debt attorney · vs. doing it yourself
What the funding analyzer checks
The review starts with the real cost, then works through the clauses that decide what happens if cash flow tightens.
The real cost (estimated APR)
We translate the factor rate and total payback into an estimated effective APR over the realistic repayment period — the number the offer hides.
Factor rate & total payback
How much you receive vs. how much you must repay, and how the "factor rate" format obscures the true cost.
Confession of judgment
The clause that lets a funder get a judgment against you (and your guarantor) without a lawsuit, notice, or hearing.
Daily / weekly ACH debits
Fixed automatic debits that strain cash flow, and whether a single failed debit or bank change triggers default.
Reconciliation rights
Whether your payments truly flex with sales — or whether reconciliation is discretionary and effectively a sham.
Personal guaranty
Whether the guaranty covers only misconduct or makes you personally liable for the entire balance and fees.
UCC liens & collateral
Blanket UCC-1 liens on all business assets, how they affect future financing, and release on payoff.
Stacking & default triggers
Anti-stacking lock-in and broad default definitions — including "decline in business" and bank-account changes.
Fees & renewals
Origination, broker/ISO, ACH, and default fees, no early-payoff discount, and double-dipping renewal terms.
A review that translates the factor rate into a real APR
Business funding is not covered by the consumer Truth in Lending Act, and MCAs are structured as a "purchase of receivables" to sidestep usury caps — so the real cost is rarely shown. This analyzer estimates the effective APR and surfaces the trap clauses, backed by source-cited guides on state commercial-financing disclosure laws, the UCC, and confessions of judgment.
Browse the business funding guidesWhat you get
- A 0–100 danger score with a category-by-category breakdown
- A financing-terms summary: amount funded, total repayment, factor rate, estimated effective APR, payment and frequency, confession of judgment, personal guaranty, liens, and fees
- Prioritized red flags — each tied to a short quote pulled from your own agreement
- Key dates: funding date, expected payoff, and payment schedule
- A ready-to-send negotiation or clarification email written from your side
How it works
Go deeper: business funding & MCA guides
Source-cited guides on the real cost and the clauses that decide funding risk.
How to Review a Business Funding Agreement: MCA, Loan & Note
A practical review order for any business funding offer — MCA, term loan, line of credit, or promissory note — starting with the one number the offer hides: the real cost.
Merchant Cash Advance Explained: How an MCA Really Works
An MCA is not a loan on paper — it is a purchase of your future sales, and that distinction is the whole game.
Factor Rate vs APR: The Real Cost of an MCA
A factor rate hides the real cost. Converting it to an APR is the single most useful thing you can do before signing.
Confession of Judgment in Business Funding: The Nuclear Clause
A confession of judgment lets a funder get a court judgment against you without a lawsuit, notice, or a hearing — it is the most dangerous clause in business funding.
Daily & Weekly ACH Debits in an MCA: Cash-Flow Risk
Fixed daily ACH debits are how an MCA gets repaid fast — and how a slow week turns into a default.
MCA Reconciliation Rights: Real Protection or Illusion?
Reconciliation is the promise that your payments flex with your sales — and whether it is real or illusory is the heart of an MCA.
MCA vs Business Loan: Which Is Cheaper and Safer?
An MCA is faster and easier than a loan — and almost always far more expensive and riskier. Here is how to compare them.
Personal Guarantees in Business Funding & MCAs
A personal guaranty is how business funding reaches past the company and into your personal assets — especially when paired with a confession of judgment.
MCA Stacking & Default Triggers to Watch For
Many funding agreements define default so broadly that ordinary business events — or just a slow month — can accelerate the whole balance.
UCC-1 Liens & Collateral in Business Funding
A blanket UCC-1 lien gives the funder a claim on essentially everything your business owns — and it can block your next financing.
Promissory Notes & Business Loan Agreements: What to Check
A promissory note looks simple, but the interest, prepayment, acceleration, and guaranty terms decide how much it really costs and how much risk you carry.
Business Funding & MCA Red Flags: A Borrower’s Checklist
A fast checklist of the clauses that most often trap a small business in a funding or MCA agreement.
Frequently asked questions
How do you find the real interest rate on an MCA?
We divide the total payback by the amount funded to get the factor cost, then annualize it over the realistic repayment period (accounting for daily/weekly debits that shrink the balance). The estimated effective APR is frequently many times what the factor rate suggests.
What documents does this cover?
Merchant cash advances (MCAs), business term loans, lines of credit, and promissory notes — including the security agreement, personal guaranty, and any confession of judgment that comes with them.
What’s the most dangerous clause in business funding?
A confession of judgment — especially paired with a personal guaranty — because it lets the funder obtain a judgment against you and your personal assets without a hearing. A hidden triple-digit effective APR is a close second.
Is this legal advice?
No. This is general information and document-review prompts. Enforceability of confession-of-judgment, usury, and disclosure rules varies sharply by state — confirm specifics with a qualified attorney before signing.