A Merchant Cash Advance (MCA) is not a loan. It's a purchase of your future receivables. Because it's structured differently, MCA providers are not required to disclose an APR — instead they use a factor rate (e.g. 1.28), which tells you the total payback multiple but hides the true cost of short-term capital.

A factor rate of 1.28 on a $100,000 advance means you repay $128,000. That sounds straightforward — until you consider the repayment term. If you repay that $28,000 in cost over 6 months instead of 12, your effective APR roughly doubles. The shorter the term, the higher the APR.

Why it matters for trucking operators: MCA lenders are common in trucking because they approve quickly and don't require perfect credit. But APRs can range from 40% to well over 200%. Knowing your real number lets you compare against equipment financing, SBA loans, or factoring — and negotiate from a position of knowledge.