Georgia law requires commercial funders to give you a written disclosure before you sign for financing of $500,000 or less. It puts the key numbers in one place so you can compare offers fairly. Here's what each line means, using our $100,000 example.
| Disclosure line | What it means | In our example |
|---|---|---|
| Total funding amount | The full advance before any fees | $100,000 |
| Disbursement amount | What actually lands in your account after fees | $97,105 |
| Total payment amount | Everything you'll deliver over time | $130,000 |
| Total dollar cost | The difference between what you pay and what you receive | $32,895 |
| Payment terms | How and how often you pay | 10% of daily card sales through your processor |
| Prepayment | Whether paying early changes your cost | Explained in your offer |
Questions to ask before you sign
- Does the disbursement amount match what you expect to receive?
- Is every fee listed? There should be no charges that don't appear on the disclosure.
- Do you understand how your daily share is collected?
- Do you know what happens if your sales slow down?
Red flags with any funder
- Fees that appear in the contract but not on the disclosure
- Pressure to sign the same day
- Blank fields or numbers that don't add up
- An offer to fund on top of an advance you already have
At RPI, we walk you through every line before you sign. If anything is unclear, ask us. We'd rather answer one more question than have you sign something you don't understand.
Have an offer in hand? Enter its advance amount, factor rate and holdback in the MCA calculator to double-check the numbers.
Example figures are for illustration only.