Merchant Cash Advance vs. Commercial Credit Cards: Key Differences
As a Merchant Cash Advance (MCA) provider, we’re often asked about the fine differences between our products and similar financial products. While both MCAs and commercial credit cards can greatly benefit small business owners, there are some key characteristics that set them apart.
Here are a few similarities and differences:
MCA | Business Credit Card | |
Based on Projected Sales, Not a Fixed Dollar Amount | ✓ | x |
Fast Turnaround | ✓ | ✓ |
Flexible Repayment | ✓ | ✓ |
Forgiving of Past Financial Difficulties | ✓ | x |
Good in Emergency Situations | ✓ | ✓ |
Hard Credit Inquiry | x | ✓ |
Late Payment Fees | x | ✓ |
Strict Credit Requirements | x | ✓ |
Not sure whether a credit card or an MCA is right for your business? Let’s chat! We understand that each business has its own unique history and set of needs, and our products are not necessarily the right choice for every business owner. Our main goal is simply to support small businesses. We’re always here to offer guidance and help you understand which product will work best for your needs at this time.
If you wish to speak to someone now, please call us at 888-382-3945 or fill out this form to send us an inquiry. One of our teammates will get back to you as soon as they are available.
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Revenue-Based Finance is formerly and alternatively known as Merchant Cash Advance, or MCA.
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