A merchant cash advance costs a Sevierville, TN restaurant or shop a fixed total, collected as a share of each day's card sales, so how long it runs depends on those sales. Boldwick Funding Group sends advance requests to providers among its funding partners, who decide. A restaurant or shop owner weighing an offer can reach Boldwick at (865) 326-1090 or start on the request form.
Five days of holdback at a pancake house, a factor and a fee at a leather goods shop with the days counted, the same advance through a thinner stretch of card sales, and a 12-month loan and a credit line draw priced beside it.
Merchant cash advance companies quote three numbers: the advance, the factor and the holdback share
Merchant cash advance companies, the providers that buy future card sales, set out an offer in three numbers: the advance (what the business receives), the factor (what the advance is multiplied by to set the total collected) and the holdback (the share of each day's card sales that goes to the provider). An advance is not a loan, and it has no interest rate or fixed term.
Illustration only, invented figures: a Sevierville, TN pancake house takes an advance with a 10% holdback. Five days of its card sales, and what the provider collects each day:
| Day | Card sales (invented) | Collected by the provider |
|---|---|---|
| Day 1 | $1,860 | $186.00 |
| Day 2 | $2,410 | $241.00 |
| Day 3 | $1,370 | $137.00 |
| Day 4 | $2,980 | $298.00 |
| Day 5 | $3,240 | $324.00 |
| Five days | $11,860 | $1,186.00 |
The amount collected rises and falls with the day's sales: $137.00 on the thinnest invented day, $324.00 on the strongest. The merchant cash advance page sets out how an advance is collected and what it is not.
Factor rate, a fee taken off the top and the total a provider collects at a Sevierville, TN leather shop
Illustration only, invented figures: a Sevierville, TN leather goods shop is offered a $16,000 advance at a 1.31 factor, so the provider collects $20,960.00 in total. A $480 fee is taken off the advance before it is sent, which leaves $15,520.00 in the shop's account.
In this invented offer, the cost is the $4,960.00 difference between the advance and the total, plus the fee: $5,440.00 on the $15,520.00 received, or 35.1% of the money the shop actually got (our arithmetic). With a 9% holdback on card sales averaging $1,780 a day, $160.20 is collected daily, and the total is reached after 131 days (rounded up).
Comparing offers from two providers means lining up the same three numbers plus every fee, not the size of the advance alone.
Leather goods stores sit inside NAICS 448, clothing and clothing accessories stores, and 53 of the 162 such stores in Sevier County, TN had fewer than five employees in 2023 (CBP).
A week of thinner card sales with an advance in place: what moves and what stays fixed
When card sales thin out, a true percentage holdback collects less each day, so the advance takes longer to reach its total. The total itself does not change.
In the same invented case, at $1,240 a day instead of $1,780, the leather shop's 9% holdback collects $111.60 a day, and the $20,960.00 total takes 188 days instead of 131.
An agreement may instead set a fixed daily or weekly debit, which stays the same when sales drop. Whether an offer works that way is written in its contract, and it is a question for the call before anything is signed.
Questions worth writing down before a leather shop, a pancake house or any other business signs an advance:
- Is the holdback a true share of each day's card sales, or a fixed debit?
- Which fees come off the advance before it arrives, and which are added to the total?
- Does the contract offer anything for settling the total early?
- What does the agreement say if the business changes card processors or bank accounts?
A term loan and a credit line priced next to the same Sevier County, TN advance
Illustration only, invented figures: the same $16,000 as a 12-month term loan at an invented 14.5% annual rate costs $1,440.36 a month, $17,284.32 over the year, so $1,284.32 of interest. As a business line of credit draw at the same invented rate, paid off after 120 days, the interest comes to $762.74.
Set against the advance's $5,440.00 cost, both cost less in this invented case. Each comes with fixed payments or a set paydown, and with a partner's own review of bank statements, time in business and credit; a partner may decline a loan request even where a provider offers an advance.
The working capital page covers fixed-payment loans for running costs, the other half of this comparison.
By Boldwick Funding Group · Updated
