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Comparison

Merchant cash advance vs business loan: speed against cost.

An advance funds files a loan will not, and charges for it. A loan costs less and asks more of you. The right answer depends entirely on which side of the qualification line you sit.

✓ Checking what you qualify for does not affect your credit score.

DailyAdvance repayment
WeeklyLoan repayment
650Loan FICO floor
Same dayBoth decisions

Side by side

Cost structureAdvance: factor rate, fixed at funding. Loan: interest on a declining balance.
RepaymentAdvance: daily debit or a share of card sales. Loan: fixed weekly payment.
TermAdvance: typically until repaid, often 6-18 months. Loan: 12-18 months, fixed.
Credit requirementAdvance: flexible, often 500s. Loan: 650+ on our sheet.
Time in businessAdvance: from 6 months. Loan: 3 years.
Early payoffAdvance: we discount at 30, 60 and 90 days — most funders do not. Loan: 50% off remaining interest on a full payoff.
PositionAdvance: can sit second. Loan: first position only.
Effect on cash flowAdvance: takes money every morning. Loan: leaves the week intact.

The short answer: If you clear 3 years in business and a 650 credit score, the term loan is cheaper and the weekly payment is easier to live with. If you do not, an advance is the product that will actually fund, and the honest move is to refinance out of it later.

The daily debit is the part people underestimate

A merchant cash advance takes money every single morning. You never see a full day of deposits, which makes payroll weeks and slow Mondays harder than the headline cost suggests.

A weekly payment on a term loan leaves the rest of the week intact. For most operators that difference matters more than a point or two of cost — and it is the most common reason people refinance out of an advance.

When the advance is genuinely the right call

Under 3 years in business. Credit in the 500s or low 600s. An existing position already on the books. A deal that has to close this week. Those are real situations and a term loan will not solve them.

The mistake is staying in an advance after the business has outgrown it. Once you clear the thresholds, refinancing into weekly payments is usually the single biggest cash-flow improvement available — and if you can clear the balance inside 30, 60 or 90 days, our early payoff discounts make that cheaper still.

Advance funds from 6 months in business and a 600 FICO
Term loan needs 3 years and a 650
An existing balance of $100,000 or less can be bought out
Up to 2 current positions are allowed

How it works

1. Apply in minutes

A short application. No impact to your credit score to see what you qualify for.

2. Same-day decision

We review revenue, time in business and bank activity — not just a credit score.

3. Review your terms

You see the amount, the term and the total cost before you sign anything.

4. Funded next business day

Money in your account, typically the next business day after signing.

Common questions

Is a merchant cash advance a loan?

No. It is the purchase of a portion of future receivables, which is why it is priced with a factor rate rather than interest.

Which is cheaper?

A term loan, if you qualify. It carries 0% origination and halves remaining interest on a full early payoff.

Can I get a term loan if I already have an advance?

Not directly — a term loan is first position only. Look at a line of credit, which can sit second, or at a buyout.

How fast is each?

Both carry a same-day decision and next-business-day funding.

What credit score do I need?

650 for the term loan. Revenue-based funding starts at 600.

See what you qualify for

Same-day decision. Applying takes a few minutes and will not affect your credit score.

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