Identify the contractual structure
A receipts-linked purchase, a fixed repayment product and a loan can create different obligations. The marketing label does not settle the agreement’s legal classification. Read the contract and obtain qualified advice where needed. This guide explains comparison questions; it does not decide whether a transaction is legally a loan, a purchase or another structure.
Separate funding from net cash
Record the stated funding amount, fees withheld, prior balances repaid and cash actually received. Determine which amount is multiplied by the factor and which additional charges are collected later. Scheduled repayment relative to the headline advance can differ from the cost relative to usable proceeds. Keep both amounts visible before comparing alternatives.
Understand what a factor calculates
A factor multiplier applied to its defined base produces scheduled repayment dollars under the modeled assumptions. It is not an annual interest rate or APR. The duration and timing of cash flows matter, and fees can use other bases. The factor calculator shows entered repayment dollars and cost; it does not create a regulatory APR from incomplete contract information.
Read how remittances are determined
Identify the percentage, fixed amount, payment frequency and collection method actually specified. Determine whether remittances follow realized receipts or are initially estimated. A business should not assume that a product name guarantees automatic payment reductions in a slow period. Put the confirmed cash schedule beside operating receipts and essential expenses.
Find the reconciliation process
If the agreement describes adjustments or reconciliation, ask how they are requested, what records are needed and when changes take effect. Keep those conditions in writing. A historical FTC staff discussion highlights why payment and disclosure details matter; it does not establish current legal rights for every agreement or prove that a specific provider will accept a request.
Price an early settlement separately
Request the actual settlement amount for your intended date and any discount or remaining charge. A fixed purchased amount or factor-based total may not decline proportionately with time outstanding. Compare usable proceeds, cash paid and timing instead of claiming that a faster payoff automatically creates a lower annual rate. The actual agreement governs.
Stress receipts without assuming another advance
Model a slower period using the confirmed remittance mechanics and show the effect on essential operating cash. Identify obligations already in place and restrictions relevant to additional financing. Do not build a base case that relies on a new advance arriving to repay the existing one. A calculator cannot confirm future provider availability or sustainable borrowing capacity.
Make the enquiry about clarity
Ask MITEY to help distinguish the price unit, usable proceeds, payment schedule and settlement questions. Share the business purpose and timing without account statements or sensitive sales records in the public form. Provider introductions require confirmed availability and your permission. MITEY does not guarantee a lowest-cost product, legal classification, reconciliation outcome or approval.