Three tools funders hope you never use
Everything below runs in your browser and sends nothing anywhere. Put in the numbers from your own agreement and your own papers.
- Factor rate to APRTool 1
- CPLR 320 answer clockTool 2
- UCC 9-513(c) 20 daysTool 3
What does this advance actually cost?
Funders quote a factor rate because it sounds small. Enter the numbers from your agreement and see the cost stated as an annual rate, the way a bank states the cost of a loan.
When is my answer due?
The single most expensive mistake in an MCA lawsuit is the default. In a New York state court case, CPLR 320(a) gives you 20 or 30 days, depending on how you were served. This tool applies that rule to the dates you enter. It is an estimate, not legal advice, and it does not cover Florida or federal cases.
The UCC 20-day clock
You paid the advance off, or the filing was never authorized, and the UCC-1 is still on record. Once the funder receives your authenticated demand (a signed, written demand), UCC 9-513(c) gives it 20 days to file or send a termination statement.
Frequently asked
The simple annualized cost is the total cost divided by what you actually received, scaled to a year. It is the number most people work out on a napkin. The APR, IRR-based (IRR is the internal rate of return, the standard way to annualize a stream of payments) accounts for the fact that you pay the money back a little every day, so the funder gets most of it back long before the term ends. That is why the second number is higher, and it is the one closest to how a lender states an annual rate.
Not by itself. New York's usury limits, 16% civil under GOL § 5-501 and 25% criminal under Penal Law § 190.40, apply to loans. A merchant cash advance is written as a purchase of receivables. Whether a court treats it as a loan turns on the factors in LG Funding, LLC v. United Senior Props. of Olathe, LLC, 181 A.D.3d 664 (2d Dep't 2020): whether there is a real reconciliation provision, whether the term is finite, and whether your bankruptcy is an event of default. The rate tells you how much is at stake in that question; it does not answer it.
ACH debits pull on business days, not calendar days, so a "daily" MCA takes about 21 payments a month and 252 a year. Using 365 would overstate the rate. If your agreement debits seven days a week, the true rate is higher than the figure shown.
No. It applies CPLR 320(a) and General Construction Law § 25-a to the dates you enter, using a list of New York court holidays that we maintain. It cannot see your affidavit of service, and the way you were served decides everything. Treat the result as an estimate of the last day, and get a lawyer looking at the papers well before it. If it is inside a week, call instead of calculating.
The number is the beginning of the conversation, not the end of it.
Send the agreement and whatever you were served with. We will tell you what the rate means for your case, what the deadline is, and what it costs to do something about it.