Merchant cash advance or term loan: choose wisely.

Get your personalized rate Pictured: Koshland Pharm

As a business owner you don’t have time for high interest rates when you’re looking to expand, remodel, or make a major purchase. If you’re thinking about a merchant cash advance, it’s important to consider the ramifications for your business. Cash advances can’t offer you the predictability of a Funding Circle term loan such as:

  • Fixed monthly payments (not daily or weekly, nor a percentage of sales)
  • No prepayment penalty
  • Transparent rates and a simple, one-time origination fee
  • Low interest rates

Compare term loans to merchant cash advance financing and calculate the real costs to help you determine the best option for your small business financing needs.

Funding Circle can help you with business financing for your business Click on Apply Now to check your eligibility

How we compare

Funding Circle
(Term loan)
MCA
(Merchant cash advance)
AMOUNTUp to $500,000Typically Up to $100,000
FIXED RATE  Yes
Fixed rates starting at 4.99%1
  No
Very high rates dependent on credit card sales*
MONTHLY PAYMENT  Yes
1 fixed monthly payment
  No
Take a cut of your sales every day, with daily interest*
FEES1-time origination fee
(0.99-6.99% of loan principal)
Vary
Often hidden and include monthly fees
FUNDING TIMEIn as few as 10 daysA few days
PREPAYMENT PENALTIESNone
Save on interest if repaid early
Hefty
Often charge full interest even if repaid early
*Monthly versus daily payments can quickly and dramatically change the total cost of your loan, and sometimes make shorter-term cash advance rates appear less expensive than a term loan. A good lender will always be willing to help you calculate an APR (all costs for one year in a single equivalent interest rate), so that you can accurately compare the true cost of each loan.

What we offer

Rates starting at 4.99%1
Loans from $25K-$500K over 6 months-5 years
A decision in as little as 24 hours after document submission

Get a fast affordable business loan that will allow you to:

Move or expand your space

Move or expand your space

Give your business room to grow with a bigger office, new location, or more warehouse space.
Refinance debt

Refinance debt

Convert high-interest debt into one monthly payment, with no prepayment penalties.
$25K-$500K

Buy inventory or equipment

Invest in new equipment and fulfill every order through bulk inventory purchases.
Hire more employees

Hire more employees

Take your business to the next level by expanding your team and adding new skill sets.
Move or expand your space

Move or expand your space

Refinance debt

Refinance debt

Buy inventory or equipment

Buy inventory or equipment

Hire more employees

Hire more employees

Success Story

"[An MCA] was too expensive; shorter-term capital like that is convenient, but not a cheap borrowing solution by any means."

- Ryan Gray of Electric Brewing Company
Triangle
Industry
Electrical
Loan Details
$2,160/mo. for 36 months

Small business cash advance: is it worth it?

Merchant cash advance financing has its advantages, but speed and convenience can come at a cost. Because merchant cash advance loans are repaid daily, a percentage of your credit or debit card sales is withheld until the agreed upon amount has been repaid in full. Also, merchant advance repayment amounts are determined by a factor rate rather than an interest rate. In order to arrive at the real cost of your cash advance, you need to multiply the advance by the factor rate.

There’s much to consider when it comes to merchant cash advances versus term loans. Let us help walk you through all the details.

A cut above the rest

If you need business funding, this is your place. They were a lifesaver!
-Kenny

Excellent

No hassle, speedy, great rates and excellent customer service. Definitely recommend!
- Debbie

Shocked!

Thanks to the Funding Circle team for the support. The loan application process was simple to follow and processed quickly. They stepped in to support my business when the banks were useless.
- David

based on reviews

Why Funding Circle

Our U.S. co-founders started Funding Circle because they were small business owners themselves and had experienced first-hand how hard it is to access affordable and transparent financing. When they couldn’t get a loan to grow their small business — despite the company’s great success — they knew something was wrong. The traditional bank loan system was broken. So, they set out to build a better solution for American small business owners.

Visit our Resource Center

Tips and tools for growing your business.

Explore now

Frequently Asked Questions

Why should I borrow from Funding Circle as opposed to a bank or other lender?
How long does it take to apply for financing through Funding Circle?
Do I need to have collateral, and if so, what would be acceptable collateral for a business loan?
What is a factor rate and how does it differ from an interest rate?

Have any questions?

Account Manager

Give us a call!

(855) 385-5356

Our dedicated loan specialists are here to help you.

Download PDF

Download your guide to business loans. See how we compare to other lenders.

1 Rates may vary according to term and overall creditworthiness. To see what rate your business may qualify for, apply today at no obligation.