Compare Business Funding Options

Understand the differences between MCA, Working Capital, Equipment Financing, and Revenue-Based Financing to find your ideal solution.

Side-by-Side Comparison

Feature Merchant Cash Advance Working Capital Equipment Financing Revenue-Based Financing
Minimum Credit Score 500+ 550+ 500+ 550+
Funding Range $5K - $500K $10K - $1M $15K - $2M $20K - $5M
Approval Time 24-48 hours 24-48 hours 48-72 hours 3-5 business days
Repayment Term 4-18 months 3-24 months Up to 60 months Flexible (varies by revenue)
Repayment Method Daily % of card sales Fixed monthly payments Fixed monthly payments % of monthly revenue (ACH)
Cost (Representative) 1.1x - 1.5x factor rate Variable APR Competitive market rates Fixed repayment total
Prepayment Penalty ✓ Flexible Varies by terms Varies by terms ✓ Flexible
Best For Seasonal Business ✓ Yes (scales with sales) ✗ No (fixed payments) ✗ No (fixed payments) ✓ Yes (scales with revenue)
Collateral Required ✗ No ✗ No (unsecured) ✓ Yes (equipment) ✗ No
Personal Guarantee Usually required Usually required Required Sometimes waived
Use Of Funds Any business need Any business need Equipment only Any business need
Ideal Customer Type High card volume All business types Equipment purchasers Growth-stage companies

Detailed Product Overviews

Merchant Cash Advance (MCA)

Best for: Restaurants, retail, hospitality, and service businesses with consistent card processing.

How it works: You receive a lump sum upfront. You repay through a percentage of daily credit card sales (e.g., 8-12% of daily card revenue) until your payback amount is reached.

Pros:
  • Fast approval and funding (24-48 hours)
  • Flexible repayment that scales with sales
  • Available with lower credit scores (500+)
  • Usually no prepayment penalties
  • Ideal for seasonal businesses
Cons:
  • Higher cost (1.1x-1.5x payback amount)
  • Requires significant card processing volume
  • Not suitable for low-card businesses

Working Capital

Best for: Any business type needing flexible funding for operations, payroll, inventory, or growth.

How it works: You receive a lump sum and repay through fixed monthly payments over a set term (3-24 months). Think of it as a traditional business loan alternative.

Pros:
  • Available to all business types (not card-dependent)
  • Fixed, predictable monthly payments
  • Fast approval (24-48 hours)
  • Use funds for any business purpose
  • Transparent cost structure
Cons:
  • Fixed payments don't flex with business cycles
  • Slightly higher credit requirement (550+)
  • Requires proven revenue and credit history

Equipment Financing

Best for: Businesses acquiring machinery, POS systems, kitchen equipment, vehicles, or other capital assets.

How it works: We finance the equipment purchase. The equipment serves as collateral. You repay with fixed monthly payments over a set term (up to 60 months).

Pros:
  • Long repayment terms (up to 60 months)
  • Lower monthly payments spread over time
  • Preserves cash flow for operations
  • Competitive interest rates
  • Tax-deductible depreciation benefits
Cons:
  • Can only be used for equipment purchases
  • Equipment is held as collateral
  • Longer approval timeline (48-72 hours)
  • Not suitable for general working capital needs

Revenue-Based Financing (RBF)

Best for: Growth-stage companies, e-commerce, subscription businesses, and companies with strong revenue growth.

How it works: You receive capital upfront. You repay a fixed percentage of your monthly revenue (e.g., 3-8%) via ACH until you've repaid the agreed total plus a small premium.

Pros:
  • Repayment scales perfectly with revenue
  • No fixed debt burden
  • Available for high growth businesses
  • Transparent cost structure
  • No personal guarantee often waived
Cons:
  • Slower approval process (3-5 days)
  • Higher credit requirement (550+)
  • Not suitable for declining revenue businesses
  • Repayment can last longer if revenue is lower

Quick Decision Guide

Choose MCA If:

  • You process $10K+ in monthly credit card sales
  • You want the fastest approval possible
  • Your revenue is seasonal or variable
  • You have limited credit history or lower credit score (500+)

Choose Working Capital If:

  • You need predictable, fixed monthly payments
  • You don't process high card volumes
  • You need funds for general business operations
  • You prefer a loan-like structure

Choose Equipment Financing If:

  • You're purchasing machinery, POS systems, vehicles, or equipment
  • You want to maximize the repayment term (lower payments)
  • You can provide the equipment as collateral
  • You need tax depreciation benefits

Choose Revenue-Based Financing If:

  • You're a growth-stage company with increasing revenue
  • Your monthly revenue varies significantly
  • You want no fixed debt burden
  • You prefer to avoid personal guarantees when possible

Ready to Apply?

Still not sure which option is best for your business? Our team can help you determine the ideal solution in minutes. Apply online or call us at (305) 384-8391 to discuss your situation.

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