SBA loans are almost always cheaper than MCAs in total dollar cost. A typical SBA 7(a) loan at 10.5% APR on $100,000 over 5 years costs approximately $27,500 in total interest. A typical MCA with a 1.30 factor rate on $100,000 costs $30,000 total — but is repaid in 6–12 months, not 5 years. The key difference is speed and qualification: SBA loans take 30–90 days to fund and require strong credit/collateral.
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Business Loan Comparison Calculator
Compare the true cost of merchant cash advance, SBA loan, business credit card, and line of credit side-by-side. Enter your funding need and see real numbers.
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$5,000 – $5,000,000
Typical range: 1.15 – 1.45
Typical: 6–18 months
Typical range: 10–13% (2026)
SBA 7(a): 24–120 months
Typical biz card: 20–28%
How long to pay card balance?
Typical LOC: 8–22%
How long to pay LOC balance?
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Quick Reference: All Financing Types Compared
Business Loan Comparison Calculator 2026 — MCA vs SBA vs Credit Card vs Line of Credit — Comparison Table (2026)
Factor
MCA
SBA 7(a) Loan
Business Credit Card
Line of Credit
Funding Speed
24–72 hours
30–90 days
3–14 days (card delivery)
7–21 days
Min. Credit Score
500 FICO
640–680+ FICO
600–680+ FICO
640–720+ FICO
Min. Time in Business
6 months
2+ years typical
1+ year preferred
2+ years typical
Collateral Required
None
Often required
None
Sometimes
Bank Decline OK
Yes
No
No
No
Tax Liens OK
Often
Rarely
No
No
Total Cost (relative)
Medium–High
Lowest
High (if carried)
Medium
Repayment Structure
Daily/weekly holdback
Fixed monthly payments
Min. monthly payment
Interest only or amortizing
Early Repayment Benefit
No — cost is fixed
Yes — saves interest
Yes — saves interest
Yes — saves interest
Max Amount (typical)
Up to $5M
Up to $5M
$5,000–$100,000
$10,000–$500,000
Best For
Fast capital, challenged credit, revenue-dependent businesses
Long-term low-cost capital, strong credit, stable business
Small short-term needs, 0% intro offers, rewards
Revolving needs, strong credit, 2+ year businesses
Can't Qualify for a Bank Loan? T.A.G. Can Help
If traditional financing isn't an option — bank declined, tax lien, under 2 years, low credit — we can typically get you funded in 24–72 hours. Free application, no obligation to accept.
SBA loans are almost always the cheapest option in total dollar cost for businesses that qualify. A typical SBA 7(a) loan at 10.5–11% APR costs roughly 28–30% of the loan amount over a 5-year term. The tradeoff: SBA requires 640+ credit, 2+ years in business, no major derogatory events, and takes 30–90 days to fund. If you qualify for an SBA loan, it's usually the right choice for large, long-term capital needs. If you don't qualify — or need money in 24–72 hours — MCA is the fast, accessible alternative.
Is a merchant cash advance worth it?
An MCA is "worth it" when the business value of having capital now exceeds the total cost of the advance. If you can make $50,000 in new contracts, purchase discounted inventory, or prevent a $30,000 penalty by accessing $40,000 in capital that costs $10,000 total — the math is clear. MCA is expensive compared to bank loans but accessible to businesses that can't get bank loans. The right question is: "What does having this capital allow me to do, and does that value exceed the cost?"
How is MCA calculated vs. a loan with interest?
Loans use interest rates (percentage of outstanding balance per period). A $100,000 loan at 10% APR costs $10,000/year in interest — and if you pay it off early, you pay less total interest. MCA uses a factor rate — a flat multiplier applied once to the original advance amount. A $100,000 MCA at 1.30 factor rate costs $30,000 total, regardless of how fast you repay. There is no "interest savings" from early payoff on a traditional MCA. You pay $130,000 whether you repay in 4 months or 12 months.
Can I negotiate the factor rate on an MCA?
Yes, to a limited degree. Factor rates are determined by underwriting, but ISO brokers (like T.A.G.) can often improve the rate by submitting your application to multiple funders and leveraging competing offers. The strongest negotiating lever is competing term sheets: if two funders offer 1.29 and 1.33, you can use the 1.29 offer as leverage. Factors that improve your rate: higher monthly revenue, longer business history, cleaner bank statement (fewer NSFs), strong first-position deal history, and shorter requested term.
What credit score do I need for a business line of credit?
Traditional bank LOCs typically require 680–720+ personal FICO, 2+ years in business, and annual revenue above $250,000. Online LOC providers (Kabbage, Fundbox, BlueVine) have lower thresholds: some approve 600+ FICO with 12+ months in business. If your credit score is below 640 or you've been declined by banks, a merchant cash advance is likely your most accessible working capital option while you build your credit profile toward LOC eligibility.