Two funding programs. One Workable relationship.
A merchant cash advance flexes with your revenue. A term loan gives you a fixed payment you can plan around. Both are $10K–$2M, both decided in about a day.
MCA vs. business term loan
| Merchant Cash Advance | Business Term Loan | |
|---|---|---|
| Amount | $10,000 – $2,000,000 | $10,000 – $2,000,000 |
| Decision time | Same day (often ~90 minutes) | 24–48 hours |
| Funding time | Typically 48–72 hours after approval | 1–3 business days |
| Repayment | Daily or weekly, from revenue | Fixed weekly or monthly payments |
| Term | 3–18 months (revenue-paced) | 6–36 months |
| Cost structure | Factor rate on the advance | Interest rate on the balance |
| Collateral | Unsecured | Unsecured |
| Best for | Speed, seasonal swings, uneven revenue | Planned spend, predictable budgeting |
| Minimum time in business | 6 months | 12 months |
| Credit sensitivity | Low — bank statements lead | Moderate |
Ranges are typical program parameters. Final amount, term, and cost depend on underwriting.
Choose an MCA if…
- You need funds this week, not next month.
- Revenue moves week to week and a fixed payment is risky.
- You've been in business 6–12 months.
- Credit is a weak spot but deposits are healthy.
Choose a term loan if…
- You want one predictable payment to budget around.
- The spend is planned, not urgent.
- You've been trading 12+ months with steady revenue.
- You'd rather stretch repayment over a longer term.
What businesses use funding for
Not sure which fits? Talk to our team or run the numbers.
How the cost is actually calculated
A merchant cash advance is not priced with an interest rate. It is priced with a factor rate — a single multiplier applied to the amount advanced. Take $50,000 at a factor of 1.38 and the total you repay is $69,000, no matter how quickly or slowly the balance comes down. There is no amortization schedule and no interest accruing day by day.
That single difference changes how you should compare offers. A term loan quoted at an annual rate spreads cost across time, so paying it off early saves money. With an advance, the cost is fixed at signing, so a shorter term means the same dollars leaving your account faster, not fewer dollars overall. What matters most is the daily or weekly payment and whether your deposits comfortably absorb it.
Rates are set file by file, with 1.38 a common middle — stronger files price below it, tougher files above. Where a file lands depends on four things underwriting reads straight from your bank statements: total monthly deposits, how consistent those deposits are, your average daily balance and negative days, and how many other funding positions are already taking payments. Clean statements with few positions price best.
Before you sign anything — with us or anyone else — add up every daily debit already leaving your account. If total debt service is pushing past roughly a third of your true revenue, another advance usually makes the problem worse rather than better. We will tell you that plainly, and sometimes the honest answer is a smaller amount than you asked for.
Common questions
Will applying hurt my credit?
No. Reviewing your application and bank statements does not involve a hard credit pull, so checking what you qualify for costs you nothing.
What do you need to give me an offer?
A completed application and your three most recent months of business bank statements. Additional months, a profit and loss statement, or corporate documents are requested only when the file needs them. Identity documents and a voided check are collected after you accept an offer, never before.
Can I get funded with existing advances?
Often yes, up to a point. We count what your current positions are costing you each month and fund only what the remaining cash flow supports. Consolidating several small positions into one is sometimes the better move.
How fast is funding, really?
Decisions typically come the same day a complete file arrives, and money moves within 24 to 48 hours of acceptance. Incomplete files are the main cause of delay, which is why we ask for all three statements up front.
Need funding for your business?
$10K–$2M, offers in 90 minutes, funding in 48–72 hours.
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