Funding Comparison
Equipment financing is built around the equipment itself — the machine is the collateral. MCA doesn't care what you're buying — it cares what your deposits look like. For business owners who need to move fast, have credit challenges, or are buying used equipment, MCA often wins even for equipment purchases.
Equipment financing is better when you're buying new, high-value equipment and can qualify — it's lower cost and the equipment secures the loan. MCA is better when you need capital in 48 hours, have under 680 FICO, are buying used or older equipment that won't qualify for financing, or need funding that covers more than just the equipment purchase.
12 decision factors — MCA vs equipment financing.
| Factor | MCA | Equipment Financing |
|---|---|---|
| Approval Speed | 24–48 hours | 3–10 business days |
| Minimum Credit Score | 500 FICO | 620–680+ FICO (new equipment) / 550+ (used) |
| Equipment as Collateral | Not required | Yes — equipment is pledged |
| Down Payment Required | None | 10–20% of equipment value |
| Restrictions on Equipment Age | None — works for used/older equipment | Many lenders restrict to newer equipment |
| Can Fund Non-Equipment Expenses | Yes — unrestricted | No — loan tied to specific equipment |
| Cost | Factor rate 1.15–1.45 (higher) | 6–25% APR (typically lower) |
| Repayment Term | 4–18 months (shorter) | 12–84 months (longer, lower payments) |
| Time in Business | 6 months minimum | 1–2 years typically required |
| Tax Benefit (Section 179) | Depends on use | Yes — full equipment deduction possible |
| Ownership After Payoff | You owned it from day 1 (no lien) | Owned after loan payoff (lien released) |
| Best For | Fast need, low credit, used equipment, multi-purpose funding | Large new equipment, good credit, longer payoff |
The same equipment need produces different answers depending on your situation.
Equipment financing is usually better for large, new equipment purchases if you qualify — it's tied to the equipment value and typically has lower effective cost. MCA is better when you need capital quickly, the equipment doesn't qualify for financing (older, used), you have under 620 FICO, or you need funding for multiple purposes beyond just the equipment.
MCA advances capital against your future bank deposit volume, repaid daily. Equipment financing is a loan secured by the specific piece of equipment — the machine itself is the collateral. Equipment financing requires the equipment to hold sufficient collateral value and involves a lien on that equipment. MCA requires no equipment lien and no collateral.
Yes. MCA funds are unrestricted — they can be used for equipment purchases, repairs, inventory, payroll, or anything else. Many businesses use MCA for equipment when they don't qualify for equipment financing, need capital faster than a financing application allows, or when the equipment is used or older and won't qualify for standard financing.
Most equipment financing requires 10–20% down payment on the equipment purchase price. MCA requires no down payment — it's a lump sum advance that you use however needed. Some businesses use MCA to fund the down payment on equipment financing, then use the equipment loan for the balance.
One-page application. 3 months of bank statements. Decision in 24–48 hours. No equipment liens, no down payment required.
Or call/text: 330-238-3003
