How Does MCA 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!
Merchant Cash Advance | 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 |