Can a merchant pay less?

There are a few companies that will provide the cash advance for less.

At least once Merchant Cash Advance company provides cash advances to businesses (some states are excluded) at a cost of 1.12 when they payback period is structured to last exactly 6 months ($10,000 advance costs $11,200), they're product offering is actually officially a loan (not disguised as factoring) and they are registered lenders. but they represent only a small amount of the cash advances sold daily in the USA.

Then there are a few companies that will sell Cash Advances at a cost of 1.22 to 1.35 ($10,000 would cost a merchant anywhere from $12,200 to 13,500).

The reason they fund only a small amount of the cash advance deals even though they are much cheaper then most other Cash Advance companies, is because they're commissions are smaller.

Just like the Sub prime mortgage industry, the sales organization or agent is paid lesser commissions on the cheaper loans. the larger commissions are paid on deals that cost the merchant a lot more money.