[Sean Cash]

Got to disagree with you Andy - time value of money says otherwise. One's effective yield is not driven by what one does with the money after they receive it. The yield is clearly higher when payments are received daily vs. 1 lump sum at month's end, regardless of whether I reinvest or park it under the mattress.

The formula to determine the yield is a pain because you cannot simply convert it to days (vs. years or months) as Sat/Sund do not result in payments. To get the exact %, you would need to discount each day (Mon - Fri). Using the monthly is a good ballpark unless you need to give precise figures to an investor.

The problem here is that MCAs don't actually compound because no interest is being accrued. Indeed the purchase of future sales is not just a legal loophole but actually a financial one.

You are probably best off calculating the equivalent APR since an APY would be theoretical based upon imaginary compounding and an imputed interest rate.