Each merchant cash advance offer comes with a capital fee that varies by offer size and business performance. This transparent, fixed fee will never change during the duration of your advance. The capital fee is combined with your advance into a total owed amount.
For example, a $10,000 advance may have a capital fee of $750, making the total owed $10,750. Payments are applied to the entire outstanding balance – there isn’t a specific portion of the payment that’s allocated to just the fee.
Merchant cash offers and advances are provided by Parafin and governed by Parafin’s Terms of Service. Merchant cash offers and advances and bank transfers are subject to review and may be rescinded. Merchant cash offers and advances are not extensions of credit or loans and they may not be used for personal, family, or household purposes.