Master Comparison: Every Major Funding Product

Funding Product Funding Speed Cost (APR equiv.) FICO Min. Collateral Revenue Min. Documents Best For
Merchant Cash Advance Fastest, provider-set 40-150%+ 500 None $10K/mo Bank stmts, ID Speed, bad credit, no collateral
Online Alt. Lender 1-3 days 20-80% 550 None $4K-$6K/mo Bank link or stmts Slightly lower cost than MCA, still fast
Business Line of Credit 3-7 days 15-40% 600 Sometimes $25K/mo Financials, tax returns Recurring working capital needs
Bank Term Loan 4-8 weeks 8-18% 650 Often Varies 2 yr tax returns, P&L, collateral Large amounts, long terms, low cost
SBA 7(a) Loan 3-6 months 7-12% 640 All avail. Varies Full SBA package Maximum loan amount, best rate
SBA Express 3-5 weeks 9-12% 640 All avail. Varies Full SBA package (smaller) Up to $500K faster than standard SBA
Equipment Financing 3-7 days 8-22% 600 Equipment itself Varies Equipment quote, basic financials Specific equipment purchase
Invoice Factoring 24-72 hours 15-50% N/A Invoices Active AR AR aging report, invoice copies Outstanding B2B invoices to collect
Business Credit Card 7-14 days (card delivery) 18-29% 680 None None Personal application only Small recurring purchases, rewards
HELOC (Home equity) 3-6 weeks 8-12% 680 Home equity Varies Home appraisal, income verification Homeowners; low rate, high risk
PO Financing 5-10 days 18-45% N/A Purchase orders Active POs Purchase orders from creditworthy buyers Fulfill large orders before collection
SBA Microloan 4-8 weeks 8-13% N/A Varies Low/flexible Business plan, basic financials Early-stage businesses, under $50K
Cost vs. speed trade-off across funding products Scatter comparison plotting typical cost against typical funding speed for eight products: SBA 7(a) and SBA microloans are lowest cost but slowest, bank term loans and HELOCs sit in the low-cost, slower-speed range, business lines of credit and equipment financing sit in the middle on both axes, online alternative lenders and invoice factoring are moderate cost and fast, and merchant cash advance is the highest cost but fastest to fund. Higher cost Lower cost Slower Faster SBA 7(a) Microloan Bank loan HELOC LOC Equipment Online lender Factoring MCA
Person in an office reading documents from an open ring binder
Comparing funding products on paper only goes so far. What actually decides the outcome is which product reads your specific file the way it is, not the way a chart assumes it to be.

Decision Matrix: What Should YOU Use?

I need money in 24-48 hours
→ MCA. No other product funds this fast for business use, though exact timing is set by the funding provider once your file is complete.
My credit score is below 640
→ MCA (500+ FICO OK) or online alternative lenders (550+). Bank loans and SBA programs practically require 640-680+.
I don't have collateral to pledge
→ MCA, online lenders, or business credit card. All are unsecured. Bank loans and SBA programs require pledging all available collateral.
I want the lowest total cost of capital
→ SBA 7(a) or bank term loan if you qualify. If you qualify for SBA and can wait 3-6 months, take it. The cost savings over MCA on a $100K advance can be $20,000-$40,000.
I need ongoing access, not a one-time lump sum
→ Business line of credit (draw, repay, draw again) or business credit card. MCA and term loans are single disbursements.
I need to buy a specific piece of equipment
→ Equipment financing first. The equipment is its own collateral. Lower rate than MCA, faster than SBA. MCA is backup if you need cash before the equipment loan closes.
I have outstanding invoices from creditworthy B2B customers
→ Invoice factoring. Advance 80%-95% of invoice face value without taking on debt. Better than MCA for this specific situation.
I own a home with equity and have a good credit score
→ HELOC for lowest cost, but it puts your home at risk. Consider whether business risk belongs in your personal real estate. MCA keeps the risk commercial.
My revenue is variable and I'm worried about fixed payments
→ MCA or revenue-based financing. Repayment is a percentage of revenue: slow months automatically produce lower payments. Fixed-payment products (bank loans, SBA) don't adjust when revenue drops.
Variable MCA repayment vs. fixed bank loan payment during a slow month Comparison showing that during a slow revenue month, an MCA or revenue-based financing payment shrinks automatically because it is a percentage of daily deposits, while a fixed bank loan or SBA payment stays the same dollar amount regardless of how revenue drops that month. Strong month MCA payment (% of deposits) Fixed bank/SBA payment Slow month MCA: smaller Fixed payment: unchanged Same dollar payment on lower revenue strains cash flow more.
A man in an apron writing in a notebook beside a roasting machine on the floor of a small coffee roastery.
The right column in the matrix above is the one that matches this business's actual deposit history and timeline, not the one with the lowest advertised cost.

Head-to-Head Comparison Guides

MCA vs.
MCA vs. Bank Business Loan
The most common comparison. MCA wins on speed and access; bank loan wins on cost and amount. Full cost scenarios for $50K, $100K, $250K.
Cost analysisApproval requirementsUse cases
MCA vs.
MCA vs. SBA Loan
SBA offers the lowest rates in business lending but takes 3-6 months. Full timeline comparison and bridge strategy for businesses that eventually qualify.
SBA timelineBridge strategyCost comparison
MCA vs.
MCA vs. Business Line of Credit
Revolving credit vs. lump sum advance. Which fits your cash flow pattern: recurring draws or a one-time injection?
Revolving creditDraw flexibility
MCA vs.
MCA vs. Equipment Financing
When to use MCA for equipment vs. dedicated equipment financing. Asset-secured vs. revenue-secured: cost and collateral tradeoffs.
EquipmentAsset collateral
MCA vs.
MCA vs. Invoice Factoring
Best for B2B businesses with outstanding invoices. Full comparison of advance rates, fees, and customer relationship implications.
B2B businessesReceivables
MCA vs.
MCA vs. Business Credit Card
Credit cards for smaller needs, flexible spending. MCA for larger lump sums with easier approval. Three cost scenarios showing when each wins.
Revolving creditSpending flexibility
RBF vs.
Revenue-Based Financing vs. Term Loan
Variable payments tied to revenue vs. fixed monthly payments. Full structural comparison for businesses choosing between flexible and fixed repayment.
Repayment structureRevenue risk
MCA vs.
MCA vs. HELOC
Home equity line of credit at low rates vs. MCA at high speed. When tapping home equity for business makes sense and when it doesn't.
Home equityRisk analysis
Deep Dive
Business Line of Credit Guide
How business lines of credit work, qualification requirements, draw mechanics, and when a LOC is the right tool vs. a term advance.
RevolvingDraw mechanics
Critical Decision
When NOT to Use MCA
9 situations where MCA is the wrong product, and what to use instead. The most honest page on the site.
Honest adviceAlternatives

Ready to Apply?

If MCA is the right fit: 10-minute application, decision once your file is complete, funded once the provider approves your file. $10K-$2M available.

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FAQ

What is the best business funding option for small businesses?
There is no single best option: it depends on speed, credit, collateral, and use case. The fastest: MCA, with exact timing set by the funding provider. The cheapest: SBA 7(a) (3-6 months). The most flexible for recurrence: business line of credit. The simplest for equipment: equipment financing. Use the decision matrix above to find your best match.
What is cheaper: MCA or a bank loan?
Bank loans are significantly cheaper: 8%-18% APR vs. 40%-150%+ effective APR for MCA. But bank loans require 650+ FICO, 2 years of tax returns, collateral, and 4-8 weeks to close. If you qualify for a bank loan, take it. MCA provides access for businesses that don't qualify for bank financing and need capital fast.
Can I use both MCA and a bank loan at the same time?
Yes, this is a common bridge strategy. Use MCA now for the immediate need while applying for SBA or bank financing in parallel (3-6 months). When the bank loan closes, pay off the MCA and transition to lower-cost long-term financing. Confirm the MCA contract allows early payoff without a penalty.
What is the fastest way to get business funding?
The fastest path: (1) MCA, typically the fastest funding option, with exact timing set by the funding provider once your file is complete and all documents are ready. (2) Online alternative lenders (Kabbage, Ondeck), 1-3 business days. (3) SBA Express, 2-4 weeks total (fast for SBA, slow vs. everything else). (4) Bank loans, 4-8 weeks minimum. Speed always comes with cost: faster products carry higher effective rates.
What is the difference between MCA, revenue-based financing, and working capital loan?
Merchant cash advance (MCA) and revenue-based financing (RBF) are functionally the same for small businesses: an advance against future revenue, repaid via holdback of daily deposits, no fixed monthly payment. 'Working capital loan' is a general term for any short-term business financing used for operational expenses; MCA is one type, but so are short-term bank loans, lines of credit, and invoice factoring. The term simply describes the use case, not the product structure.