Rates & Disclosures
How our merchant cash advances work.
Merchant Cash Advance Mechanics
A merchant cash advance (MCA) is not a loan. It is a purchase of future sales. Diesel Funding provides you with an upfront lump sum of capital in exchange for a percentage of your future credit card or bank deposits.
This means your payments fluctuate with your business revenue. If you have a slow month, your payments decrease. This flexibility helps protect your cash flow during downtimes.
Cost & Factor Rates
Example Cost Calculation
Instead of an interest rate (APR), MCAs use a "factor rate".
*Rates vary based on industry, time in business, and revenue consistency.
Legal Disclosures
Important Note
Understanding Your Offer
Every Diesel Funding offer spells out three things before you sign: the amount of capital you receive, the total amount of receivables purchased (the funding amount multiplied by the factor rate), and the remittance schedule. There is no compounding and the total does not grow over time — the amount stated in your agreement is the amount collected.
Factor rates vary from file to file. Underwriting considers your industry, how long you've been in business, how consistent your revenue is, and your existing obligations. Two businesses funding the same amount can receive different terms because their receivables carry different risk profiles. That's also why we don't publish a single universal rate — a quoted range that doesn't apply to your file would be more misleading than helpful.
The best way to know your cost is to apply and review an actual written offer. Applying doesn't obligate you to accept, and there's no hard credit pull to see your terms.
Questions to Ask Before Accepting Any Funding
Whether you fund with us or anyone else, we think every business owner should be able to answer these before signing:
- What is the total amount that will be collected, in dollars — not just a rate?
- What is the remittance schedule, and what happens if my revenue slows down?
- Are there any fees deducted from the funded amount before it reaches my account?
- Is there a discount for early payoff, and how is it calculated?
- Am I working with the funder directly, or a broker who resells the file?
Your Diesel Funding agreement answers all of these in writing, and your funding advisor will walk through them with you before you sign. For how the product itself works, see our merchant cash advance page or the step-by-step process.
More Questions About Costs
Why don't you publish your factor rates?
Because terms are underwritten per file, any published number would be wrong for most applicants. Your written offer states your exact factor rate and total remittance amount before you commit to anything.
Does the cost grow if I take longer to remit?
No. Unlike interest-bearing products, the purchased amount is fixed in your agreement. It does not compound or accrue over time.
Can I see my terms before committing?
Yes. Applying gets you a written offer with the funding amount, factor rate, total remittance, and schedule. You decide after reading it — there's no obligation and no hard credit pull to apply.
What happens if my revenue drops after funding?
Because an advance is a purchase of receivables, your agreement includes provisions for genuine slowdowns. If your revenue changes materially, contact your funding advisor — reconciliation and adjustment options depend on your specific agreement.