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Compare options
Choosing the right kind of capital.
A merchant cash advance isn't right for every situation. Here's an honest look at how it compares with other common options, so you can choose what fits.
Comparison table
| Merchant cash advance | Bank term loan | SBA loan | Line of credit | Equipment financing | |
|---|---|---|---|---|---|
| Speed | Hours to a day | Weeks | Weeks to months | Days to weeks | Days to weeks |
| Main approval factor | Deposits and cash flow | Credit, collateral, financials | Credit, financials, extensive paperwork | Credit and financials | The equipment and credit |
| Structure | Purchase of future receivables | Debt with interest | Government-guaranteed debt | Revolving debt | Debt secured by equipment |
| Fixed maturity | No | Yes | Yes | Varies | Yes |
| If revenue drops | Reconciliation right | Payment stays the same | Payment stays the same | Payment stays the same | Payment stays the same |
| Typical cost | Higher | Lower | Lowest | Low to moderate | Low to moderate |
| Best for | Speed and flexibility | Planned, long-term needs | Large, long-term needs with time to wait | Recurring short gaps | Buying a specific asset |
When it fits
When an advance makes sense, and when it doesn't.
Good fit
You need capital in days, the opportunity or problem won't wait, and your revenue can comfortably support the remittance.
Good fit
A bank has said no or is moving too slowly, and your deposits are steady.
Consider other options
You can wait several weeks and qualify for a bank or SBA loan, which will usually cost less.
Consider other options
The remittance would strain your daily cash flow. A smaller advance, or a different product, may be better.