A reputable merchant cash advance has no hidden fees. The factor rate is the full disclosed cost. The total payback amount is the full obligation. State disclosure laws (NY FAIR Act, CA SB 1235, others) require itemized cost breakdowns; reputable funders provide them voluntarily everywhere else.
Hidden fees show up in less-regulated agreements as five common types: origination fees, admin fees, ACH/draft fees, early-termination penalties, and "junk" servicing fees. Read every contract for these before signing.
The 5 Hidden-Fee Categories
1. Origination fees
Charged at funding, typically 1-5% of the advance amount. On a $100,000 advance with a 3% origination fee, $3,000 is deducted from the wire — you receive $97,000 but owe the full $100,000 × factor rate. Westline does not charge origination fees on any advance. Many other MCA funders charge 2-5%.
2. Admin / processing fees
Charged at signing, typically $250-$2,500 flat. Often disclosed in fine print as "documentation fee" or "underwriting fee." Westline does not charge these. Watch for them in any "no-fee" claim that hides them under different names.
3. ACH / draft fees
Per-debit fees added to each daily ACH withdrawal — typically $5-$25 per draft. On a 130-business-day advance with a $15 ACH fee, that's $1,950 in pure surcharge on top of the factor rate. Most reputable funders absorb the ACH cost. Less-regulated agreements pass it to the merchant.
4. Early-termination penalties
Charged when the merchant pays off the advance before the agreed term. Some agreements stipulate a fixed penalty (e.g., 10% of remaining balance). This is the opposite of the prepayment-discount we cover in our early-payoff article — penalty agreements punish prepayment rather than reward it. Westline has no early-termination penalties.
5. Servicing / monitoring fees
Monthly recurring fees for "account management," "compliance monitoring," or "platform usage." Typically $25-$200/month. Often added to advances over $250K. Westline does not charge these. Reputable funders bake these costs into the factor rate rather than billing separately.
How to Check Before Signing
Three checks on any MCA agreement:
- Compare net wire amount to advance amount. If you're approved for $50,000 but the wire is $48,500, the difference is fees. Ask the funder to itemize.
- Search the contract for "fee," "charge," "cost," "penalty." Each hit should reconcile against what was disclosed in the offer summary. Anything new in the contract = renegotiate.
- Ask explicitly: "Are there any fees beyond the factor rate?" Get the answer in writing. If the answer doesn't match the agreement, that's grounds to walk away.
State Disclosure Laws Help
If your business is in NY, CA, VA, UT, or CT, the funder is legally required to provide a standardized disclosure document at offer that itemizes total finance charge, total repayment, APR-equivalent, and payment terms. Full breakdown of state disclosure laws.
In states without disclosure laws, reputable funders provide the same disclosure voluntarily. If your funder refuses, that's a red flag regardless of state.
Westline's Position
No origination fee. No admin/processing fee. No ACH/draft fee. No early-termination penalty. No servicing fee. The factor rate is the full disclosed cost of capital. Everything itemized in writing before you sign. State-mandated disclosure where applicable; voluntary equivalent disclosure everywhere else.
Apply with Westline — 855-439-0082.
Sources & References
- Bank denial and small business credit access figures cited in this piece are derived from the Federal Reserve Small Business Credit Survey. Approval rates for small business credit applications at large banks have ranged from approximately 13%-31% across recent survey years, depending on bank category and reporting period.
- Small business finance landscape and lending program data: SBA Office of Advocacy.
- Merchant cash advance industry standards and disclosure practices: Small Business Finance Association (SBFA).
- Commercial financing disclosure regulations referenced (NY FAIR Act, CA SB 1235/666/362, VA, UT) are summarized from the published statutes; consult counsel for specific compliance application.