A merchant cash advance (MCA) is a purchase of future receivables, not a loan. Repayment is automatic — a fixed percentage of daily or weekly revenue is debited until the balance is repaid. Business loans have fixed monthly payments regardless of revenue. MCA approval is based on revenue history; loans are based primarily on credit score and collateral.
Calculator
Enter your funding amount, MCA factor rate, and estimated term to compare total cost across MCA, SBA loan, line of credit, and equipment financing — side by side.
| Product | Total Repayment | Cost of Capital | Est. Monthly Pmt | Term | Speed to Fund |
|---|---|---|---|---|---|
| MCA — 1.22 factor (best rate) | $61,000 | $11,000 | ~$2,090/mo | 5-6 months | 1-2 days |
| MCA — 1.29 factor (avg rate) | $64,500 | $14,500 | ~$2,383/mo | 5-6 months | 1-2 days |
| MCA — 1.39 factor (higher risk) | $69,500 | $19,500 | ~$2,733/mo | 5-6 months | 1-2 days |
| SBA 7(a) — 8.75% (10-yr term) | $72,500 | $22,500 | ~$625/mo | 10 years | 60-90 days |
| Business LOC — 12% APR | $58,000 | $8,000 | ~$670/mo | 10 years | 2-4 weeks |
| Equipment Financing — 9% APR | $68,400 | $18,400 | ~$1,425/mo | 4 years | 3-7 days |
| If This Is Your Situation | Choose This | Why |
|---|---|---|
| Need money in 24-48 hours, score 550+, revenue $15K+/mo | MCA | No other product funds in 24-48h — speed is the only reason to pay MCA rates |
| Can wait 60-90 days, 680+ credit, 2+ years in business | SBA 7(a) | Lowest total cost on a long term — worth the wait if you qualify |
| Need revolving access to capital for ongoing needs | Business LOC | Pay interest only on what you draw; lowest cost for recurring short-term needs |
| Buying a specific piece of equipment (truck, oven, HVAC, medical) | Equipment Financing | Equipment is the collateral — lower rates than unsecured products; asset not tied to your revenue |
| Outstanding freight invoices causing the cash flow gap | Invoice Factoring | Advances on specific invoices at 1-3% — far cheaper than MCA for A/R timing gaps |
A comparison calculator shows the possibilities. T.A.G. shows you actual competing offers from real funders for your specific profile.
Apply Now → All Funding Options Use Decision TreeA merchant cash advance (MCA) is a purchase of future receivables, not a loan. Repayment is automatic — a fixed percentage of daily or weekly revenue is debited until the balance is repaid. Business loans have fixed monthly payments regardless of revenue. MCA approval is based on revenue history; loans are based primarily on credit score and collateral.
MCA is the fastest business funding option — most businesses receive offers within 4–24 hours and funds within 1–2 business days. SBA loans take 30–90 days. Business lines of credit take 2–7 days. Invoice factoring takes 1–3 days. If speed is the priority, MCA is the clear leader.
Yes. MCAs and invoice factoring are approved primarily based on business revenue, not personal credit score. Many MCA providers approve businesses with scores as low as 500–550. Traditional bank loans and SBA loans typically require scores of 650+ and strong collateral.
A factor rate (e.g., 1.30) represents the total repayment multiplier — multiply your advance by the factor rate to get total repayment. APR annualizes the cost. A 1.30 factor rate on a 6-month advance equals roughly 60% APR. Use a factor rate to APR calculator to compare costs across funding types on an equal basis.
Restaurants most commonly use MCAs because approval is based on daily sales revenue (credit card deposits), repayment fluctuates with actual sales, and funding is fast enough to respond to equipment emergencies or seasonal needs. SBA loans are better for long-term equipment purchases. Business lines of credit work well for predictable recurring inventory costs.
T.A.G. Business Funding
500 FICO minimum. Bank declines OK. Revenue matters more than credit score. Most decisions in 24 hours.
500 FICO minimum · $4K–$6K+/month revenue · Funded in 1–3 days
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