MCA Affordability Calculator
Evaluate the impact of daily or weekly MCA payments on your gross cash flow using the Gross Holdback Rate (GBR) metric.
Business Cash Flow details
Enter your average monthly revenue and detail your active cash advance positions.
Affordability Analysis
Calculated Gross Holdback Rate (GBR)
Add monthly revenue and cash advance positions to evaluate affordability.
No impact on credit score to check
Understanding the Gross Holdback Rate (GBR)
What is a Gross Holdback Rate?
The **Gross Holdback Rate (GBR)** represents the percentage of your monthly gross revenue that is dedicated to servicing cash advance positions. Unlike traditional business loans with set interest rates, merchant cash advances (MCAs) are repaid daily or weekly based on a factor rate. Funders use GBR as the primary measure of cash-flow feasibility.
How is the GBR calculated?
To compute your holdback rate:
- Convert all payment frequencies to a monthly equivalent (e.g. daily payment multiplied by 21 business days).
- Sum the monthly payments across all of your active and proposed advance positions.
- Divide the total monthly payment by your monthly gross revenue, then multiply by 100 to get a percentage.
What GBR thresholds do funders look for?
Under 20% (Healthy)
Funder risk is low. Business is in an excellent position to secure prime rates or additional working capital.
20% – 30% (Tight)
Higher cash flow strain. Additional funding requests are heavily audited, and terms might be shorter.
Over 30% (Over-leveraged)
Extreme operational risk. Stacking more loans is not advised. Business is a strong candidate for structured MCA consolidation.
Currently Over-Leveraged with Multiple Daily Payments?
We can consolidate multiple merchant cash advance positions into a single, structured monthly or weekly payment to reduce your GBR by up to 50%.
Explore Consolidation