Equipment Funding — Merchant Cash Advance
Equipment loans require appraisals, 680+ FICO, and 2–4 weeks of approval time. MCA doesn't. If your equipment need is urgent, the deal is time-sensitive, or you don't qualify for equipment financing — MCA closes the gap in 24–48 hours.
Yes — MCA proceeds can be used for any business equipment with no restrictions. Requirements: 500+ FICO, 6+ months in business, $8,000+/month in deposits. No equipment appraisal, no lien on the equipment, no collateral. Funded in 24–48 hours. Any equipment type covered.
vs. equipment financing: 2–4 week approval, appraisal required, equipment used as collateral, 620–680+ FICO minimum.
| Factor | MCA | Equipment Financing |
|---|---|---|
| Time to fund | 24–48 hours | 2–4 weeks |
| Credit required | 500+ FICO | 620–680+ FICO |
| Equipment collateral | None required | Equipment is collateral |
| Equipment condition | Any — new or used | Often new only, or appraised |
| Documentation | 3 months bank statements | Tax returns, invoice, appraisal |
| Minimum purchase | No minimum | Often $10,000–$25,000+ |
| Use of funds | Any equipment, unrestricted | Specific equipment only |
| Cost | Factor rate: 1.20–1.49x | Interest: 6–20% APR |
Yes. MCA proceeds are unrestricted and can be used for any business equipment. No equipment appraisal, no lien on the equipment, no restriction on equipment type or condition. New, used, or refurbished equipment all qualify.
MCA wins when: the equipment is used or off-market; the deal is time-sensitive; your FICO is under 620; the purchase is under $25,000 (below most equipment loan minimums); or the equipment emergency can't wait 2–4 weeks for approval.
Same as any MCA: 500+ FICO, 6+ months in business, $8,000+/month in deposits, 0–2 NSFs/month. No equipment appraisal, no lien, no collateral. Apply with one page and 3 months of bank statements.
MCA advance amounts are based on your revenue, not the equipment value. Typically 75%–150% of your average monthly deposits. $20,000/month deposits may qualify for $15,000–$30,000. For larger needs, MCA works as a down payment or bridge while equipment financing or SBA processes.
No minimum equipment purchase amount. Maximum advance is based on your revenue — most businesses qualify for up to $500,000, though the average first advance is $20,000–$80,000. Multiple funding positions (stacking) is possible for higher amounts with a proven track record.
One-page application, 3 months of bank statements. Decision in hours. Equipment funded in 24–48 hours. No appraisal, no collateral, no restrictions on equipment type.
