It is a reasonable question: if you take a business advance and your sales pick up faster than expected, does settling early save you money on fees? The short answer depends entirely on the structure of your funding.
How merchant cash advance fees work
A merchant cash advance - or business advance - typically charges either a fixed fee set upfront or a factor rate that determines the total amount you pay. With a fixed-fee model, the total cost of the advance is determined at the beginning, not based on how long you take to settle.
With a GoTyme Business Advance, the fee is fixed from the start. You know exactly what you owe in total before you take the advance. This means settling early does not reduce your fee - but it also means there are no penalty charges for settling early either.
What does change when you settle early?
While the fee itself stays the same with a fixed-fee advance, settling faster does free up your cash flow sooner and makes you eligible to access a re-advance earlier. For businesses with strong and consistent turnover, this can be a real advantage.
It also means the effective cost of your funding relative to your sales can look better, since the same fixed fee is spread over a shorter period of high turnover.
Watch out for early payment penalties on other products
Not all business funding products work this way. Some traditional lenders charge early settlement fees, which can make paying off early more expensive than simply completing the agreed term. Always read the terms carefully before settling ahead of schedule with any provider.
The bottom line
With a fixed-fee advance like the GoTyme Business Advance, you will not save on fees by settling early - but you will not be penalised either. The benefit of early settlement is unlocking your next funding cycle sooner. Use the GoTyme funding calculator to see what your next advance could look like.