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Short-Term Loans, Merchant Cash Advances, & APRs

Find out how calculating effective APR for short-term loans and merchant cash advances can help you easily compare and find the best loan offer for your business.

    Erica Seppala
  • Last updated onUpdated

  • Chelsea Krause

    Chelsea Krause

    Lead Staff Writer

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Key Takeaways
  1. APR measures the total cost of borrowing over one year and includes the interest plus all additional loan fees.
  2. While calculating APR for short-term loans and merchant cash advances can be confusing, it is possible to calculate effective APR, an estimate that can help you compare loans.
  3. In addition to effective APR, other variables such as total financing cost and monthly payments can be used to compare loan offers.
Erica Seppala

Erica Seppala

Editor & Senior Staff Writer at Merchant Maverick
Erica began writing on small business topics in 2008. She joined Merchant Maverick in 2018 and focuses on loans, accounting, and POS. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll. She has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a graduate of Limestone University and resides in Greenville, South Carolina.
Erica Seppala
View Erica Seppala's professional experience on LinkedIn.