Frequently Asked Questions
Common questions about business loans, MCAs, and managing debt.
How do I calculate if a business loan is affordable?
A common rule is that your total monthly debt payments should not exceed 10-15% of your monthly gross revenue. Use our free calculator at bizflowlogic.com/calculators to check your specific numbers.
What is a good APR for a merchant cash advance?
MCAs typically carry effective APRs between 40% and 350%. A "good" rate depends on your cash flow, but below 80% effective APR is generally considered more manageable for short-term needs.
How much of my revenue should go toward debt payments?
Most financial advisors recommend keeping total debt service below 10-15% of gross monthly revenue to protect your cash flow.
What is the difference between an MCA and a traditional business loan?
A traditional loan has a fixed interest rate and repayment schedule. An MCA is an advance on future sales, repaid as a percentage of daily revenue — making it faster to get but significantly more expensive.
What percentage of daily sales is safe for an MCA holdback?
Generally, holdback rates above 15-20% of daily revenue can create cash flow stress. BizFlow Logic helps you see this cost before you commit.
Are you a lender?
No. BizFlow Logic is not a lender. We are a free funding checkup service that matches you with one vetted lending partner based on your profile.
Will this affect my credit score?
No. The checkup does not involve a credit pull. There is no impact to your credit score.
Can I get help in Spanish?
Yes. BizFlow Logic is fully bilingual. Visit bizflowlogic.com/es for the full Spanish experience.