Compare

MCA vs.
term loan

Predictable revenue and time favor a term loan. Volatile revenue and urgency favor an advance. Here's the detail.

Side by side

	Merchant Cash Advance	Term Loan
Structure	Purchase of future receivables	Business loan
Payment	% of daily or weekly sales	Fixed monthly
Term	3–18 months	1–5 years
Speed	Same day	1–3 days
Cost	Higher; factor rate	Lower; APR
Credit sensitivity	Lower	Higher
Best for	Uneven revenue, urgent needs	Planned, long-lived purchases

Illustrative. Your offer depends on revenue, time in business, and lending partner.

Worked example

$100K under each

A $100,000 advance at a 1.30 factor means $130,000 remitted over roughly 9 months. A $100,000 term loan at 18% APR over 36 months costs about $30,000 in interest, spread over three years. Try your own numbers.

Funding cost calculator

Amount$150,000

Advance

Factor rate1.30Est. term (months)9

Total payback$195,000

Avg. monthly outflow$21,667

Term loan

APR18.0%Term (months)36

Total repaid$195,223

Monthly payment$5,423

Difference in total cost$223 less with the advance

Illustrative only. Not an offer or a quote. Compare total cost and monthly outflow, not just the headline rate.