XPRS Capital Review

XPRS Capital Review Founder Daniel Zinn

Aiming to address the often-overlooked financial needs of the backbone of our economy – small businesses. They are the ones who often sought XPRS Capital’s offered services.

However, XPRS Capital doesn’t just offer conventional loans; instead, it operates on a merchant cash advance (MCA) model. While MCAs can provide a quick injection of capital, there is indeed a predatory side to this form of financing.

They often come with high factor rates instead of traditional interest rates. This can result in a significantly higher cost of borrowing compared to traditional loans. The total repayment amount may be much more than the initial advance, and businesses may find themselves paying a substantial premium for the convenience of quick funding.

But before getting into the review…

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The Founder

Daniel Zinn is the Founder and Chairman of XPRS Capital, LLC, a technology-driven lending company located in Santa Monica, CA. In addition to this, Daniel is the Founder and Managing Partner at Rivonia Road Capital. He graduated with an MBA from Harvard Business School, and he holds a BBusSci. from the University of Cape Town.

Before his current ventures, Daniel served as a Founding Partner and Portfolio Manager at Orange Capital, a global event-driven hedge fund. His previous experience includes working as an investment banker at Goldman, Sachs & Co. in both London and New York.

He does not have an FB avvount or even a photo in his LinkedIn profile. The picture above is from the page of his other business venture might be the only one he has online available to the public.

What is XPRS Capital?

XPRS Capital Review

A distinctive characteristic of XPRS Capital lies in its prompt decisions on small business loan applications. In a matter of minutes, entrepreneurs can receive a decision, with funds disbursed as quickly as one business day. This accelerated process not only reduces the burden of paperwork but also grants business owners the precious resource of time – a valuable commodity in the entrepreneurial.


Here’s a thought: Do you think the efficiency in the approval process, where decisions are made quickly and funds are disbursed promptly, might be designed to minimize the time applicants have for reconsideration, especially considering the potentially complex or predatory nature of certain terms?

Their Evaluation Approach

XPRS Capital advertises their “innovative” approach on evaluating businesses that instead of relying solely on personal credit history, they prioritize assessing a business’s cash flow and overall health. You know what, that is exactly how merchant cash advance model works. They are using the fact that not many people know what that business model is like or how exactly that works.

It is worse than getting the traditional loans and I will tell you why in a bit.

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What loans do they offer?

  1. Equipment Financing:
    Addressing the all-in costs of equipment purchase, providing flexibility between buying and leasing.
  2. Small Business Acquisition Financing:
    Facilitating the acquisition of small businesses, bridging the gap where traditional banks might hesitate.
  3. Working Capital Financing:
    Supporting businesses as they expand, ensuring resources are available for various operational needs.
  4. Seasonal Cash Flow Financing:
    Offering financial solutions to navigate seasonal sales fluctuations and manage temporary cash flow imbalances.
  5. Business Expansion Financing:
    Providing short-term borrowing options for well-defined business expansion strategies.
XPRS Capital Review

MCA vs Traditional Loans

As mentioned earlier, XPRS operates on a merchant cash advance (MCA) model. The distinction between merchant cash advances (MCAs) and traditional loans lies in how they are legally categorized. While loans involve the lending of money with an obligation for the borrower to repay the principal amount plus interest, MCAs are structured as commercial transactions.

In a typical MCA, a business agrees to sell a portion of its future credit card sales or other receivables at a discounted rate in exchange for an upfront lump sum of cash.

This classification as a commercial transaction means that MCA providers argue they are not subject to the same usury laws that regulate traditional loans. Instead of charging an interest rate, MCAs use a factor rate to determine the total repayment amount. The factor rate is a multiplier applied to the original amount advanced, and it is not considered interest in the traditional sense.

As a result, MCAs often fall outside the scope of usury laws, allowing providers to set factor rates that, when converted to an annual percentage rate (APR), can be significantly higher than the interest rates permitted under usury laws for traditional loans.

Interest vs Factor Rate

Interest Rate Example: Imagine you borrow $1,000 with an interest rate of 10%. After one year, you owe the original $1,000 plus an additional $100 in interest (10% of $1,000).

Total Repayment = $1,000 + $100 = $1,100

Factor Rate Example: Now, let’s consider a merchant cash advance (MCA) with a factor rate. You receive $1,000 with a factor rate of 1.2.

Total Repayment = $1,000 x 1.2 = $1,200

In this case, the factor rate is a multiplier applied to the original amount, and the total repayment is calculated differently than with an interest rate. Unlike interest, which is a percentage of the remaining balance, the factor rate is applied to the initial amount borrowed, resulting in a fixed total repayment amount.

The factor rate, commonly used in merchant cash advances, represents a fixed cost applied to the initial advance, making the total repayment amount predetermined regardless of how quickly you repay the borrowed amount.

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Daily or Weekly Payments:

Unlike traditional monthly installment loans, MCAs often require daily or weekly payments. The repayment is usually a fixed percentage of the business’s daily credit card sales or a fixed amount debited directly from the business bank account.

While marketed as a convenience, the daily or weekly payment structure can resemble the mechanisms of payday loans. This could create challenges for businesses, setting them up to miss payments and potentially facing increased rates or penalty fees.

Risk of Debt Cycle:

The potentially high costs associated with MCAs may put businesses at risk of falling into a debt cycle, especially if they struggle to meet the daily or weekly repayment requirements.

XPRS Capital Review

Exemption From Usury Law?

Usury laws, historically designed to protect borrowers from excessively high-interest rates, often do not apply to MCAs, allowing them to operate with a significant degree of flexibility in determining factor rates and repayment terms.

The distinguishing factor lies in the classification of MCAs as a purchase of future receivables rather than a traditional loan. Because MCAs are considered a commercial transaction rather than a lending agreement, they often fall outside the scope of usury laws that typically regulate interest rates on loans.

This regulatory gap has enabled MCA providers to impose factor rates that, when converted to an annualized percentage rate, can reach exorbitant levels. Critics argue that these high finance charges can be financially crippling for small businesses, especially those already facing challenges such as poor credit or limited financial stability.


While XPRS Capital’s initial appeal as a quick and accessible solution for small businesses in need of capital, opting for the services of XPRS Capital may not be the most prudent decision for most.

The rapid approval process, although seemingly convenient, can potentially limit the time available for careful consideration of the terms and conditions associated with their funding.

Furthermore, the fact that merchant cash advances (MCAs) like those offered by XPRS Capital often fall outside the realm of usury laws is a significant red flag. This regulatory gap allows for potentially exploitative financial practices, leaving clients vulnerable to high fees and unfavorable terms.

The daily or weekly payment structure, while positioned as a convenience, can act as a potential trap. This repayment model, resembling the mechanisms of payday loans, may create a scenario where businesses are set up to miss a payment, leading to increased rates or penalty fees. This not only adds financial strain but also raises ethical concerns about the fairness and sustainability of such financial arrangements.

Predatory lending practices often involve deceptive terms, hidden fees, and exploitative structures that can trap borrowers in cycles of debt. Therefore, entrepreneurs should take the time to review and thoroughly understand the terms offered by XPRS Capital or any other lending institution. Explore alternative financing options that offer more transparency, regulatory protection, and fair lending practices.

Before leaving…

If you are serious about starting your own online business, I highly recommend you to check out my #1 recommendation.

This is simply the BEST business to start right now and it made me $30,391 in the last month alone.(*and sky’s the limit*)

Go here to start leasing leads to small business owners and become a digital landlord

 Best Business To Start >>