A truck loan means that you are using a loan in order to purchase a new or used truck, and pay for it over time. The loan comes with a fee (interest rate) that must be repaid on top of the total cost of the truck. Truck loans are usually secured against the truck you are getting.
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- MCA Calculator
MCA Calculator
Our free Merchant Cash Advance Calculator helps Canadian business owners quickly estimate total repayment, cost of capital, and repayment time based on their sales.
Adjust the advance amount, factor rate, holdback %, and monthly revenue—or start with preset industry scenarios. Compare results with traditional business loans, lines of credit, and credit cards to decide what’s best for your cash flow. Disclaimer: For illustration only; confirm final terms with your provider.
Merchant Cash Advance Calculator for Small Businesses in Canada
Use our free Merchant Cash Advance (MCA) Calculator to estimate your total repayment, cost of capital, and payback period based on your sales. Enter your advance, factor rate, holdback %, and monthly revenue—or tap an industry preset to get started fast. Disclaimer: Estimates only; confirm terms with your provider. Not financial advice.
Industry Presets
Tap a tile to auto-fill typical monthly revenue and starting advance for that industry. You can adjust anything after.
🏬 Retail Steady card sales
🍽️ Restaurant Seasonal swings
💇 Health & Beauty Appointment-driven
🛒 eCommerce Online card volume
👨💼 Professional Services Invoice-based
✨ Other Custom scenario
MCA Calculator
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The lump sum you receive today.
1.201.301.50
Factor is a fixed multiplier. Example: factor 1.30 on a $10,000 advance means you repay $13,000 total—regardless of speed. It is not an interest rate.
10%15%20%
Percentage withheld from daily/weekly credit & debit card sales until the balance is fully repaid.
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$20k
$40k
$60k
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Your typical monthly card sales. Higher sales = faster repayment (more dollars held back each day).
Results
Total Repayment
$0
Cost of Capital
$0
Estimated Months to Repay
0
| Metric | Value | Explanation |
|---|
Repayment time is an estimate using monthly revenue × holdback% ÷ calendar. Actual timing varies with daily sales and any provider fees.
Merchant Cash Advance vs Other Financing
| Feature | MCA | Business Term Loan | Business Line of Credit | Business Credit Card |
|---|---|---|---|---|
| Funding Speed | ✅ 1–3 days | ⏳ 1–3 weeks | ⏳ 1–2 weeks | ✅ Instant (if approved) |
| Repayment | % of sales (variable) | Fixed monthly payment | Flexible draws + interest | Revolving balance + minimums |
| Cost | High (factor-based) | Lower fixed/variable APR | Prime + margin | ~18–25% APR |
| Best For | Fluctuating card sales | Predictable cash flow | Short-term working capital | Small purchases & rewards |
Merchant Cash Advance Basics
1. How Cost Works
MCAs use a factor rate (e.g., 1.30). Your total repayment = advance × factor. The cost of capital is (total repayment − advance). There’s no interest rate or amortization, so paying faster doesn’t reduce the total amount owed.
2. Daily/Weekly Holdback
A fixed holdback % of card sales is withheld until you’re fully repaid. If sales drop, payments drop. If sales spike, you repay faster.
3. Eligibility & Docs
Typically based on business revenues, card processing history, and time-in-business rather than collateral or personal credit alone. Funding can be quick with minimal documentation.
4. Risks & Fit
MCAs are expensive relative to loans. Ensure the cash flow boost (inventory, repairs, marketing) is expected to generate enough profit to justify the cost.
When an MCA Can Make Sense
Retail — Seasonal Inventory
Stock up before peak season (e.g., Q4). Variable repayment matches slower off-season and faster peak months.
Restaurant — Equipment Repair
Fund urgent oven/fridge repairs in days to protect revenue with minimal downtime.
Health & Beauty — Marketing Push
Finance ads or renovations to boost bookings; repay as card sales increase.
Need fast business financing?
Compare business loan and cash advance options from trusted Canadian lenders.
Compare Business Loan OptionsHow to Use the MCA Calculator
- Tap an industry preset to auto-fill typical monthly revenue and starting advance.
- Enter your advance, factor rate, holdback %, and monthly revenue.
- Hit Calculate to see total repayment, cost of capital, and estimated months to repay.
- Compare with a term loan, line of credit, or credit card in the comparison table.
Tip: If the estimated payback is under 6 months, your effective cost per month is higher—ensure your use of funds will generate sufficient ROI.
Merchant Cash Advance FAQs
Is a factor rate the same as an interest rate?
No. A factor rate is a multiplier applied to the advance to determine the total you repay. It is not an interest rate and does not decline as you repay.
How is the estimated repayment time calculated?
We estimate months to repay by dividing total repayment by the average amount withheld each month: monthly card sales × holdback %. Actual timing varies with daily sales and provider policies.
What holdback % should I choose?
Common ranges are 10–20% of card sales. Higher holdback repays faster but reduces near-term cash flow.
Can I save money by paying off early?
Usually no. MCAs are factor-based, so most providers collect the full amount regardless of speed. Ask your provider about early payoff terms.
When is an MCA better than a loan?
When speed and flexible repayment outweigh cost—e.g., urgent equipment repair, seasonal inventory purchases, or a short-term marketing push with clear ROI.
Do MCAs affect my credit?
MCAs often rely on business revenues and processor statements; they may not appear like loans on credit reports. However, defaults can still have credit and legal consequences.
Explore Your Options Before You Commit
See offers for MCAs, term loans, and lines of credit from vetted Canadian providers.
See Financing OptionsWhat is a truck loan?
When should you consider a truck loan?
Truck financing is used when purchasing any type of truck, such as a dump, highway, box, or flatbed. Most people utilize truck financing when purchasing a truck to help preserve cash flow.
What are the current average truck loan rates?
Truck loan rates can vary greatly depending on your personal or business financial history, the lender you are getting the financing from, the type of truck you are buying and more. In general, truck loan annual interest rates can be anywhere from 2% and go up to 20%+.
How do I qualify for a truck loan?
To qualify for a truck loan, you will typically need: Proof of residency in Canada, credit history, steady income from employment, government issued ID and paperwork on the truck you are looking to buy.
How does a truck loan work?
Truck financing is a secured type of loan, which means that the truck you are purchasing is the collateral. You will risk losing the truck if you are not going to repay your loan on time. Typically truck financing loans come with a term of 3 to 8 years, but this can vary on case by case basis.
How are truck payments calculated?
The truck payments will be determined based on the total cost of the truck, the downpayment that you contribute, the interest rate, and term length. Make sure that you carefully review and understand the terms of your truck loan agreement and how the payments are calculated.
What are the best places to get a truck loan?
The best truck loans are hard to find all by yourself. Especially because different loan types and different lending companies are better suited for different people. Check out the list of top truck loan providers at Smarter Loans as a starting point.
How can I get a truck loan online?
There are many companies that offer truck loans in Canada entirely online. At Smarter Loans you can find such companies, apply for a truck financing from the comfort of your home, and receive a pre-approval in 24 hours.
