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How Does Revenue-Based Finance Compare?

There’s a slew of financial products available to small businesses, and it can be challenging to narrow down the options. After all, each company has its own history and unique set of needs. Since there are so many variables to consider, we’ve put together this brief product comparison chart, which lists key characteristics for three of the most popular merchant funding products on the market today!

Revenue-Based Finance

Traditional Bank Loan

Business Credit Card

Fast Turnaround

x

Good in Emergency Situations

x

Good for Planned Initiatives

x

Based on Projected Sales, Not a Fixed Dollar Amount

x

x

Flexible Repayment

x

Forgiving of Past Financial Difficulties*

x

x

Hard Credit Inquiry

x

Strict Credit Requirements

x

Late Payment Fees

x

Requires Collateral

x

x

Restrictions on How You Can Use the Funds**

x

x

Good for Starting Up a Brand New Business

x

x

* Bad credit and bankruptcy okay, defaults on past Revenue-Based Financing not okay.
** Funds must be used for the business itself, not for personal use.

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Revenue-Based Finance is formerly and alternatively known as Merchant Cash Advance, or MCA.