Why early repayment does not work like a loan
On a term loan, interest accrues daily. Pay it off sooner and you stop the meter, so you genuinely save.
On a merchant cash advance, the total is set the moment you sign. $50,000 at 1.3 means $65,000 back, whether that takes four months or nine.
Paying it off faster therefore raises your effective annual cost rather than lowering it — the same fee over less time.
Where a discount does exist
Some funders offer an early-payoff discount, often a reduction of the outstanding balance if you settle within a defined window.
It is almost never automatic and rarely mentioned unless you ask.
Get it in the agreement before signing. A verbal assurance at origination is worth nothing at payoff, when you will be speaking to a different person.
When paying it off early still makes sense
To free up daily cash flow. The dollars do not change but the pressure does, and that can be worth it on its own.
To qualify for something better. An outstanding advance restricts what else you can access, so clearing it can open a cheaper product.
To refinance into a lower-cost facility — but do the arithmetic in total dollars, including whatever remains on the advance, before assuming it is cheaper.