A cash advance buys future sales for a fixed payback and is fast; a bank loan charges interest over a longer term and is slower and stricter.
Check my optionsMerchant cash advance
A bank loan lends money that you repay with interest on a fixed schedule. A merchant cash advance buys a share of your future sales and collects it from your deposits. The difference shapes cost, speed, qualification and what happens when sales slow.
Amount to request
$85,000.00
Funding range$25K to $5M
*Sample amounts shown. Your actual offer depends on your business and is reviewed before approval.
Your file goes to funders that fit it, so offers can be compared.
Net cash, total payback and payment shown before you sign.
You can apply at 500; stronger credit opens more products.
Approved files are usually funded the next business day.
Fast decisions. Applying takes about 5 minutes.
A short application. A soft credit pull to start.
We review revenue, time in business and bank activity, not just a credit score.
You see the amount, the schedule and the full repayment amount before you sign.
Funding in as little as 24 hours for qualified businesses.
A bank loan is debt. You borrow a principal amount, interest accrues on the balance, and you repay in fixed monthly installments over a term that can run from one to ten years or more. Approval depends on credit, time in business, financial statements and often collateral. Paying early usually reduces the interest you owe, though some loans carry prepayment penalties.
A merchant cash advance is generally structured as a purchase of future receivables. The funder pays you a lump sum now and collects a fixed total, the amount times a factor rate, through daily or weekly debits or a percentage of sales. There is no interest accruing; the total is set at signing. Approval depends mainly on bank deposits, and credit from 500 can be considered.
Those structures produce different trade-offs. The bank loan is cheaper and gentler on monthly cash flow but slow and hard to get. The advance is fast, often a same-day decision and next-day funding, and accessible, but it costs more and the frequent collections take a larger bite from short-term cash. True advances often include reconciliation, where payments can adjust if receivables fall, a flexibility fixed-installment loans usually lack.
The practical choice turns on timing, qualification and use. A long-term investment you can plan for belongs with the bank if you qualify. A short, profitable need, or a situation where the bank has said no, can justify an advance. Early-payoff discounts at 30, 60 or 90 days, offered on some agreements, can narrow the cost gap.
Through MFE, one application shows advance, line-of-credit and second-position options so you can weigh them against any bank offer you already have.
Here is a cash advance in plain dollars, to compare with a bank quote. Illustrative numbers.
| Amount funded | $100,000 |
| Factor rate | 1.38 |
| Total payback (amount × factor) | $138,000 |
| Fees deducted at funding (3%) | $3,000 |
| Net cash you receive | $97,000 |
| Weekly payment over 36 weeks | $3,833 |
| Same total as daily debits (~180 business days) | $767/day |
Illustrative numbers only. Your offer depends on your file; always compare net cash and total payback in writing.
| Legal structure | Purchase of receivables vs. debt |
| Cost expressed as | Factor rate vs. interest rate |
| Payments | Daily/weekly vs. monthly |
| Approval basis | Deposits vs. credit and financials |
| Speed | Often next business day vs. weeks |
Good fit:
Probably not yet:
Generally yes, because it is faster, unsecured and accepts more risk.
No. The total payback is fixed at signing by the factor rate.
Many true advances allow reconciliation, adjusting payments to actual receivables.
Some agreements offer discounts at 30, 60 or 90 days; others do not reduce the total.
The cash advance, since deposits drive approval and credit from 500 is considered.
Yes, if cash flow supports both payments; funders review all obligations.
Example uses for illustration only.
Before you apply:
One secure application. A soft credit pull to start. No obligation to accept an offer.
Apply for Funding