They solve similar problems and behave very differently. Here is a plain comparison, with invented example numbers so you can see how the math works.
Apply Now →A term loan gives you a lump sum that you repay over a set period with interest, usually in fixed installments. A merchant cash advance is a purchase of a portion of future receivables: the funder advances money now and is repaid an agreed total amount, typically through scheduled or revenue-linked payments. Because they are structured differently, comparing them takes more than reading one headline number.
| Term loan | Merchant cash advance | |
|---|---|---|
| Speed | Often days to weeks, with more documentation | Often faster, with a lighter file |
| Repayment | Fixed installments over the term | Agreed total repaid on a schedule |
| Cost shown as | Interest rate or APR | A fixed payback amount on the advance |
| Documents | Often tax returns and financial statements | Commonly business bank statements |
| Best suited to | Planned, longer-term investments | Short-term gaps and time-sensitive needs |
These are general descriptions, not statements about any specific offer, including ours.
Cost is where owners get confused. A term loan quotes an annual rate. An advance quotes a total payback. To compare them, you have to convert both to the same basis, and the repayment period drives the answer.
Illustration with invented numbers. Suppose you receive $50,000 and repay $60,000 in total. The $10,000 difference is the same dollar cost either way. If that is repaid over twelve months, the annualized cost is far lower than if the identical $60,000 is repaid over six months. A shorter repayment on the same dollar cost means a higher annualized rate. So do not compare a dollar fee against a percentage without checking how long you will carry the money.
If timing is tight, a longer approval process may cost you the opportunity it was meant to fund.
Fixed installments suit steady revenue. Seasonal or lumpy revenue may fit a structure that flexes more, so read the repayment terms carefully.
A multi-year equipment purchase belongs on a longer repayment than a ten-week inventory buy.
If tax returns and statements are not ready, a faster path may be the only practical one.
We fund $25,000 to $5,000,000, in as little as 24 hours. We consider FICO 500 and above, ask for about three months of business bank statements, require no tax returns, use a soft credit pull and take about five minutes to apply. Sole proprietors can apply. Before accepting any offer, from us or anyone else, read the full repayment schedule and compute the total payback against the time you will hold the money.
It depends on the offer and the repayment period. Compare total dollars repaid and how long you carry the funds, not a fee against a percentage.
The same dollar cost spread over fewer months equals a higher annual rate. That is arithmetic, not a statement about any specific offer.
Practices vary. We require no tax returns and ask for about three months of business bank statements.
Advances are often faster because the file is lighter. We fund in as little as 24 hours.
Yes. Sole proprietors can apply.
Three months of business bank statements and a 5-minute application. FICO 500+ considered. $25,000 to $5,000,000, funded in as little as 24 hours.
Apply Now →It takes about two minutes and it will not affect your credit score.
No obligation • No impact to your credit score
