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Fee Disclosure Generator

Calculate all fees on an MCA deal and generate a merchant-facing disclosure breakdown.

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Why Itemize MCA Fees?

MCA deals often include fees beyond the factor rate that reduce the net amount the merchant receives. Origination fees (1-3% of funded amount), processing fees ($250-$750), wire fees ($25-$50), UCC filing fees ($50-$150), and closing costs can collectively reduce the funded amount by 3-5%. On a $100,000 deal, $3,000-$5,000 in fees means the merchant receives $95K-$97K but repays based on the full $100K -- effectively increasing the true cost of capital. State disclosure laws increasingly require itemized fee breakdowns. This calculator lists all fees, totals them, and calculates the net disbursement so the merchant sees exactly what they receive and what they pay. Transparency on fees eliminates post-funding disputes and regulatory risk.

How to Use This Calculator

Enter each fee from the funder's closing documents

Check the funder's fee schedule and term sheet for all applicable fees. Some fees are percentages (origination), others are flat amounts (wire, UCC filing).

Enter the gross funded amount

This is the amount the funder approves before fee deductions. The net to merchant is this amount minus all fees.

Present the disclosure to the merchant

Show the itemized breakdown before the merchant signs. Every fee should be individually listed with its amount. No hidden or bundled charges.

Key Concepts

Origination Fee

A percentage of the funded amount charged for setting up the advance. Typically 1-3%. Deducted from the disbursement. On a $100K deal at 2%, the merchant receives $98K.

Net to Merchant

The actual dollar amount wired to the merchant after all fees are deducted. This is the number the merchant should focus on when evaluating whether the deal meets their capital need.

Prepaid Finance Charge

Fees deducted upfront that reduce the amount financed. Under TILA-style disclosure requirements, prepaid finance charges must be included in the APR calculation, which increases the effective APR.

Expert Insights

Fees Are Negotiable: Many brokers accept funder fee schedules as fixed. They are not. Origination fees can often be reduced or waived for repeat deal flow. Processing fees are sometimes broker-imposed (your fee, not the funder's) and should be disclosed as such. Transparent fee negotiation on behalf of the merchant builds trust and loyalty.

The Hidden Fee Problem: Some funders bury fees in the closing documents that were not disclosed at the offer stage. A $1,500 "administrative fee" that appears on the closing statement but was not in the initial offer is a red flag. Review closing documents before the merchant signs and flag any fees that were not previously disclosed. Your reputation is on the line when the merchant discovers surprise charges.

Frequently Asked Questions

The merchant pays all fees. They are deducted from the funded amount before disbursement. The funder sets the fee schedule, but the merchant bears the cost. Some funders allow brokers to add their own fees on top, which must also be disclosed.

In many states, yes. However, broker fees must be disclosed to the merchant and are increasingly regulated. In New York and California, all broker compensation must be disclosed as part of the commercial financing disclosure. Adding undisclosed fees is a regulatory violation and grounds for license revocation.

Origination fees are common but not universal. Some funders build all costs into the factor rate and charge no separate fees. Others charge 1-3% origination plus administrative fees. Fee structures vary significantly between funders -- compare the total cost (factor rate + all fees) rather than just the factor rate when evaluating offers.

Results are estimates for educational purposes only. Actual amounts may vary based on your specific financial situation, market conditions, and other factors. This calculator does not constitute financial advice.