The capital fee is a service fee you pay to accept a cash advance from Parafin. Each offer comes with a capital fee that varies by offer size, duration, and business performance. The capital fee is combined with your advance amount. This transparent, fixed fee is the only fee you'll pay, and it will not change after you have accepted the advance.
As an example, a $10,000 offer may have a capital fee of $750. The $750 capital fee would be added to the offer amount, and you would pay $10,750 in total. Payments are applied to the entire total of $10,750–there isn’t a specific amount from the payment that’s allocated to just the fee.
Merchant cash offers and advances are provided by Parafin and governed by Parafin’s Terms of Service. Merchant cash offers and advances and bank transfers are subject to review and may be rescinded. Merchant cash offers and advances are not extensions of credit or loans and they may not be used for personal, family, or household purposes.