Merchant Fund Express
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Merchant cash advance vs Business line of credit: how to choose.

An advance gives you one lump sum, repaid until the agreed total is paid.

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

The short version

At Merchant Fund Express, we compare structures on total dollars repaid and the rhythm of payments, and we publish our own terms so you can do the same.

An advance gives you one lump sum, repaid until the agreed total is paid. A line of credit gives you a pool you can draw on, repay and draw on again, paying only on what you use. They solve different kinds of problem.

Merchant cash advance and business line of credit, side by side

Merchant cash advanceBusiness line of credit
AccessOne lump sumReusable: draw, repay, draw again
CostFactor rate on the full amountInterest on what you draw; 2.49% fee on each draw; no origination, maintenance or early payoff fees
Amounts (published)$25,000 to $5,000,000$10,000 to $350,000, minimum draw $10,000
TermMonths12 to 36 months
QualificationReads revenue and bank activity; broaderStrongest tier: 3+ years, 650 FICO, $25,000/month average
Best forA one-time need and a file that misses the first tierRecurring or unpredictable needs

An illustration (arithmetic only)

A $50,000 need, illustrative arithmetic only: These are illustrative figures to show the arithmetic, not an offer; your offer shows the amount, schedule and total cost before you sign.

ItemFigure
One draw: 2.49% fee$1,245
Unused line: cost to keep it open$0
Advance at an example 1.30 factor: cost of the money$15,000

When each one fits

Merchant cash advance fits when the need is a single event, or the file does not yet meet the line-of-credit tier.
Business line of credit fits when needs recur, timing is uncertain or you want to pay only for what you use.

Compare any offer on total dollars repaid and the rhythm of payments, not on a single rate. Use the factor-rate calculator and how much can I borrow to test your numbers. The minimum FICO is 500, and the better your credit, the better your offer.

Source: Merchant Fund Express. Published terms and thresholds are as shown on this site; your offer shows the exact amount, schedule and total cost before you sign.

Related

Business line of credit — The product page.
Merchant cash advance — The product page.
Loan vs line of credit — The broader comparison.
Compare funding options — Every comparison in one place.

Common questions

Can I have a line of credit while carrying an advance?

Often yes: a line can sit in second position, up to $350,000, as long as the business can carry both payments. Merchant Fund Express shows the exact amount, schedule and total cost in your offer before you sign.

Does an unused line cost anything?

No origination fee, no maintenance fee and no early payoff penalty. Each draw carries a 2.49% fee. Merchant Fund Express publishes its terms and thresholds before you apply.

See what you qualify for

Apply with Merchant Fund Express: same-day decision, and applying takes a few minutes without affecting your credit score.

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