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I'm afraid I have no advice, but I'm just curious about the structure of the deal. Is it $X for Y% in perpetuity or for Z time period?

You may want to consider a Working Capital loan instead, if you haven't already.

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Yeah $X for Y% for one year, it's a very small amount.

How does one go get working capital loans?

I know PayPal and Stripe both have working capital programs, you may want to see if your merchant company offers it.

Super curious about this. There must be some way that the loaner knows what to expect for the next year. If that's true is the loaner paying based on your expected revenue with the upside being that you might grow further?

From my experience with PayPal Working Capital, you get loaned $X based on a percentage of your expected annual sales, and must pay back Y% up to a maximum of $Z.

There's no additional upside for PayPal beyond the lofty rates they charge for the service.

The fee is also "fixed" and is based on an APR calculated at the time of application. You never accrue interest.

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