Free Tool

What does that cash advance really cost?

Enter the terms of an advance from your POS company, a delivery app, a lender or your food distributor. See the real yearly rate, how long payback takes and what it costs you in dollars.

1. What kind of offer is it?

Try an example:

Paid back from a % of salesPOS and delivery app advancesFixed daily or weekly paymentMerchant cash advances, online lendersCash for a commitmentDistributor signing bonuses, exclusivity deals

2. Enter the terms

Cash you’ll receive

Total you’ll pay back

Have a “factor rate” instead?

Fees taken out upfront optional

% of sales taken for repayment

Your average sales in that channel

For a delivery app advance, use that app’s sales only.

Payment amount

Compare to a loan or credit line at optional

% a year

Ask your bank what rate they’d offer, then enter it here.

Upfront cash (“signing bonus”)

Your yearly purchases with them

Length of the commitment

years

Rebate on every dollar purchased optional

How much higher their prices are than a competitor’s if you know

Everything is calculated in your browser. Nothing you type is saved or sent unless you use the form below.

3. What it really costs

Total cost

Cost per $1 received

Estimated payoff

Real yearly rate (APR)

Total cash + rebates

Purchases you’re committing

Cash per year of lock-in

Breakeven price gap

What’s left of the deal if their prices run higher

Their prices vs. a competitor	Extra you pay over the term	What’s left of the deal

Good to know: a signing bonus is prepaid margin, not free money. On your books it’s a liability that’s spread over the term, not income on day one, and lenders or buyers reviewing your statements will see it that way.

Before you sign: questions to ask

Does paying early lower the fee?With most advances the fee is fixed, so paying early saves nothing.
Is the % taken from that channel only, or from all of your sales?A delivery app advance should only pull from that app’s sales. If it pulls from everything, walk away.
Is there a personal guarantee?If the business can’t pay, you can be on the hook personally.
What happens if sales drop or you close a location?Some contracts let the provider demand the full balance at once.
Can they offer you a new advance before this one is paid off?Stacking or renewing advances is how a one-time fix turns into a permanent payment.
Are there fees that aren’t in the payback amount?Origination, admin, or “processing” fees taken out of the cash you receive raise the real cost.
For supplier deals: what’s the clawback if you leave early, sell, or close a unit?Find out whether repayment is pro-rated or due in full.
For supplier deals: what’s left out of the rebate, and does the growth baseline reset each year?Exclusions and a baseline that resets every January can shrink the rebate to almost nothing.

Estimates for education only, based on the numbers you enter. Not financial, tax or legal advice. Your contract’s terms control. The examples are based on real offers FORCS has reviewed, with details changed.