What is a merchant cash advance (MCA)?

A merchant cash advance is a lump sum of capital your business receives in exchange for a share of future sales. You repay a fixed amount (the lump sum multiplied by a factor rate, typically 1.15 to 1.50) over a set term, usually 3-18 months, through daily or weekly ACH withdrawals from your business bank account.

How long does it take to get funded?

MCA and short-term alternative loans: 24-72 hours. Term loans: 3-10 business days. Equipment financing: 3-7 days. SBA 7(a) loans: 45-120 days. Same-day funding is possible on clean MCA files with bank statements ready.

What documents do I need to apply?

For initial offers: the last 3 months of business bank statements in PDF format. Some lenders may later request tax returns, profit & loss statements, or a voided check. For SBA loans, expect to provide 2-3 years of business tax returns.

What is the minimum revenue to qualify?

Most lenders in our network require at least $10,000 per month in revenue for alternative products. For term loans and SBA, minimums typically start at $25,000-$30,000 per month. Established 5+ year businesses often qualify for larger loan amounts at better rates.

How many lenders will see my application?

Your application is matched to the 10-25 lenders in our 100+ network most likely to fund your specific profile. Most applicants receive 3-8 real offers within 24-48 hours.

Is FynFund free to use?

Yes, completely. FynFund is free for borrowers. We are compensated by our lender partners if and when a loan is successfully originated. There are no application fees, no subscription costs, and no hidden charges.

What credit score do I need for a business loan?

Most alternative funders in our network accept personal FICO scores as low as 500-550. SBA loans typically require 620+. Best-rate term loans require 680+. For MCAs, business revenue and time in business matter more than personal credit.

What is a factor rate?

A factor rate is a multiplier used in merchant cash advances to calculate total repayment. A $50,000 advance at a 1.25 factor rate means you repay $62,500. Factor rates typically range from 1.15 (best) to 1.50 (higher risk). Established businesses get better factor rates.

Does applying hurt my credit?

No. FynFund uses a soft credit pull to match you with lenders. Your personal credit score is not affected. The lender you ultimately choose may do a hard pull at contract stage, but only with your explicit approval.

Can my established business get a lower MCA rate?

Yes. Businesses with 5+ years of operating history and stable revenue consistently receive factor rates 10-20% lower than newer businesses. Lenders price risk, and established operators are materially lower risk.

What is the difference between an MCA and a term loan?

MCA: fastest funding (24-72 hours), highest cost (factor rates 1.15-1.50), flexible daily/weekly repayment, no collateral. Term loan: slower funding (3-10 days), lower cost (APRs 9-18%), fixed monthly payments, may require collateral or personal guarantee.

Do you fund veteran-owned businesses?

Yes. Several lenders in our network offer preferred rates for military veteran-owned businesses. The SBA Veterans Advantage program also waives the upfront guaranty fee on SBA 7(a) loans up to $350,000 for veteran-owned businesses.

Can I get a business loan with bad credit?

Yes. Many alternative lenders in our network specifically underwrite businesses with FICO scores in the 500-600 range based on revenue strength rather than credit history. MCAs and revenue-based financing are typically the most accessible products for lower-credit applicants.

What is SBA 7(a) and should I apply for one?

SBA 7(a) is the most common SBA loan program, with amounts up to $5 million and rates of 8-12% APR. It's the cheapest long-term business financing available. Downside: it takes 45-120 days to close. Best for expansion, equipment, working capital, or partner buyouts where speed isn't critical.

Can I pay off a merchant cash advance early?

Yes. Most MCA funders in our network offer early-payoff discounts. The exact discount varies by funder. We negotiate early-payoff terms upfront if that's important to your cash flow strategy.

Does FynFund work with trucking companies?

Yes. FynFund specializes in trucking business funding — owner-operators, small fleets, and larger trucking companies. We route trucking deals to industry-specialized funders for better rates and faster approvals.

Can I get restaurant financing?

Yes. Restaurants, bars, cafes, food trucks, and catering companies routinely qualify. Established 5+ year restaurants get the best rates. Available products include working capital MCAs, equipment financing for kitchen gear, and SBA 7(a) for expansion.

Do you offer invoice factoring?

Yes. For businesses with B2B invoices (trucking, construction, staffing, manufacturing), invoice factoring converts unpaid invoices to immediate cash at 85-97% advance rates. Funds typically arrive within 24-48 hours of invoice submission.

What if I've already taken an MCA?

Prior MCAs don't disqualify you. Many funders offer reverse consolidation to pay off existing positions at better rates, or second-position advances alongside your current stack. Disclose any open positions upfront so we match you accurately.

How much can my business borrow?

Most established 5+ year businesses qualify for $50,000 to $500,000 on their first product. Businesses with $500K+ monthly revenue can access $1M-$2M in MCAs. SBA 7(a) goes up to $5M. The specific amount depends on revenue, product type, and credit profile.

Is an MCA cheaper than a term loan?

Almost never on APR. A typical MCA translates to 40-120% effective APR. A typical term loan for an established business is 9-18% APR. MCAs win on speed, accessibility, and qualifying criteria — not on cost.

How fast can I get a term loan?

3-10 business days for online/alternative term lenders (Funding Circle, OnDeck term products, bank online loans). Traditional bank term loans can take 2-4 weeks. SBA 7(a) is 45-120 days.

Do term loans require collateral?

Depends on the lender and amount. Loans under $100K are often unsecured but require a personal guarantee. Loans over $250K often require collateral (equipment, real estate, or a blanket UCC lien on business assets).

Can I get a term loan with bad credit?

Harder but possible. Below 600 FICO, most banks decline. Alternative lenders will approve some files at 550+ but at higher APRs (22-36%). MCAs are typically more accessible for sub-600 credit because they underwrite on revenue, not credit.

What if I need money this week?

If you truly need funds in under a week, MCA or short-term loan is your only option. Term loans don't close that fast. Use SBA/term when you have 2+ weeks of runway on the use case.

MCA vs. Term Loan: Which Is Right for Your Business?

If you've been running your business 5+ years and you're comparing funding options, you're probably weighing a merchant cash advance (MCA) against a term loan. They solve similar problems — injecting working capital — but the mechanics, cost, and risk profile are fundamentally different.

This article puts them side-by-side with real numbers so you can see which one fits your situation. Spoiler: for most seasoned operators with good bank statements, a term loan is cheaper. But speed, accessibility, and fit matter too.

The core difference in one sentence

An MCA is a purchase of your future receivables priced with a factor rate and repaid daily. A term loan is a conventional loan priced with an APR and repaid monthly. Everything else flows from that distinction.

Side-by-side comparison

Factor	Merchant Cash Advance	Term Loan
Funding speed	24-72 hours	3-10 business days
Cost structure	Factor rate (1.15-1.50)	APR (9-18% typical)
Effective APR	40-120%	9-18%
Repayment	Daily/weekly ACH	Monthly
Term length	3-18 months	12-60 months
Credit requirement	500+ FICO	620+ FICO (680+ for best rates)
Collateral	None (usually)	Often required over $250K
Personal guarantee	Always	Usually
Early payoff discount	Sometimes (negotiate upfront)	Usually (no prepayment penalty)

Real cost comparison — $100K over 12 months

Let's stop theorizing and plug real numbers in. Say you need $100,000 for 12 months of working capital.

MCA: $100K at 1.28 factor, 12-month term

Total repayment: $128,000
Daily payment (260 business days): ~$492/day
Cost of capital: $28,000
Effective APR: ~52%

Term loan: $100K at 14% APR, 12-month term

Total repayment: $107,717
Monthly payment: ~$8,978/month
Cost of capital: $7,717
Effective APR: 14%

Cost difference: $20,283. The term loan is $20K cheaper on the same $100K for the same 12 months. That's not small. That's a new truck, six months of a key hire, or a full year of marketing budget.

So when does an MCA win?

MCAs aren't bad products — they're priced products. They win in three scenarios:

Speed is the deciding factor. The walk-in cooler dies Tuesday and you need $40K wired by Friday to replace it before the weekend. A term loan can't close that fast. An MCA can.
You don't qualify for a term loan. If your personal credit is below 620, or if your bank declined you for reasons unrelated to revenue (tax liens, recent negative month, industry restrictions), MCAs may be your only accessible capital.
ROI on the money outpaces the cost. If a $50K inventory buy will generate $80K of margin in the next 90 days, a 1.28 factor rate is easy math. The opportunity cost of waiting 3 weeks for a term loan is higher than the MCA premium.

When does a term loan win?

You have time. If the use case can wait 2-4 weeks (hiring, expansion, planned equipment purchase, seasonal prep), use the cheaper money.
Your credit and revenue both qualify. 680+ FICO with $25K+ monthly revenue opens up the best term-loan pricing. Don't pay MCA rates for a file that deserves SBA or prime-bank term.
You want predictable monthly payments. Daily ACH from an MCA can strangle cash flow, especially if your revenue is lumpy. Monthly payments are easier to budget around.
You're building business credit. Term loans report to D&B and Experian Business, building your credit profile for future, cheaper capital. MCAs typically don't.

The hybrid play

Seasoned operators often use both — but for different purposes:

Term loan for the big strategic move (new location, expansion, major equipment) where 2-4 weeks to close is acceptable.
MCA as a fast-bridge tool for unexpected working-capital needs (emergency repairs, a large PO that needs inventory pre-funding, bridging receivables).
Line of credit for ongoing cash-flow smoothing between the two.

The mistake is using MCAs for long-term, non-urgent growth capital. That's paying premium pricing for speed you don't need.

How FynFund helps you choose

FynFund is a broker. When you apply, we route your file to lenders in our 100+ network for both product types — MCA funders and term-loan banks. You get real offers in 24-48 hours and see them side by side.

We'll tell you honestly which one fits your situation. If SBA 7(a) at 10% APR is right for you and you can wait 60 days, we'll say so. If speed matters more, we'll get you an MCA and negotiate the best factor rate we can.

See our MCA page or business loans overview, or jump to get pre-qualified and see both product types side-by-side within 24 hours.