Business Funding Comparison Calculator

The comparison table above can show SBA 7(a) financing costing $8,000 less than a mid-rate MCA on the same $50,000, and that is still the wrong answer if the SBA decision takes 60-90 days and the reason you are comparing options in the first place is a payroll date three weeks out. Weigh these factors together instead of ranking by total cost alone: how much a delay actually costs your business, what your credit score currently qualifies you for, whether you have (or want to pledge) collateral, and whether your revenue is steady enough to support a fixed monthly payment rather than a repayment that flexes with sales. The matrix below lines up those same factors across all five products side by side.

MCA and invoice factoring are the only two products here that skip collateral entirely and approve primarily on revenue rather than credit score, which is why they lead the "need it fast, credit isn't clean" column. Everything else on this page trades speed for a lower rate.

Mistake #1: Comparing a Factor Rate Directly to an APR

A 1.30 factor rate and a 9% APR loan are not measured the same way, and lining them up as if they were is the single most common comparison error. A factor rate is a flat multiplier on the full amount borrowed for the full term; it does not shrink as the balance goes down the way an amortizing loan's interest does. Annualizing a factor rate for comparison purposes is a legitimate exercise and usually produces a number well above what a bank loan's APR would show for the same dollar cost of capital, but that annualized figure is a comparison tool, not the number the funder quotes you, and it should not be the only thing you use to judge an offer.

Mistake #2: Ignoring the Cost of Waiting

The chart above plots each product on speed against relative cost of capital. SBA financing sits in the slow, low-cost corner for a reason: it is genuinely the cheapest money on this page, but only for a business that can actually wait 60-90 days for a decision. If a slow decision means a missed seasonal window, a lost equipment deal, or a payroll gap that turns into a real problem, the "cheaper" option was never actually cheaper for that specific need. Price the delay itself before you price the capital.

• Is this a factor rate or an annualized interest rate, and can you show me the total repayment amount in dollars, not just the rate?
• Is repayment a fixed amount or a percentage of my daily or weekly revenue, and what happens on a genuinely slow week?
• Is there a discount for paying the balance off early?
• Is a personal guarantee required, and what does it actually cover? A personal guarantee is standard on nearly all of these products, MCA included, not just on bank loans, so read that clause before you sign whichever option you choose.
• What documents do you need to underwrite this? Most funders want your six most recent, consecutive months of business bank statements (not personal account statements), all pages, unredacted, plus confirmation you have been operating at least six months.
• Will this involve a hard credit pull, and when? Expect a soft pull for the initial review; a hard pull typically follows later, before final approval, and it carries a small, disclosed impact on your score, generally a few points.