Quote Originally Posted by jotucker1983 View Post
If it's an MCA, I tell them there's no APR/interest rate associated with it. If they continue to try and calculate an APR anyway, I just continue to state there's no APR/interest rate associated with this transaction and explain to them (again) how it works, just as I did in this thread.

If it's a loan, that's a different story and that is usually disclosed in the loan agreement anyway.

I'm not calculating an APR if there's no interest rate on the deal. If you guys want to allow merchants to drag you into calculating certain types of "interest rates" on cash advances, then you can have at it, but from a "technical" and "legal" standpoint....you have no business discussing APRs nor any other type of interest rate on merchant cash advance deals.
Basically APR - ANNUAL. Annual meaning a year. If a factor rate is 12 months I can see where someone will try to convert to an APR. But like John said, pretend you will turn to stone if you utter the word "loan" or "APR" if you speak of the almighty powerful MCA.