Loan or advance? See the real cost of each.
Put a merchant cash advance next to a term loan or a line of credit. We line them up on true cost, APR, and monthly payment so you can see which is the cheapest money, not just the cheapest sticker. An estimate for comparison, not a contractual APR.
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For any advance, the APR figure is an APR-equivalent (estimate for comparison only, not a contractual APR). An advance is the purchase of future receivables, priced with a factor rate, not a loan with an interest rate.
How to read this
A loan's APR and an advance's APR-equivalent are built to be directly comparable, so you can weigh fast money against cheaper money on the same scale. The cheapest sticker is not always the cheapest money.
A short term can push the APR-equivalent up even when the total dollars look low, and a long term can lower the monthly payment while the total cost climbs. Watch both badges below: the lowest total cost and the lowest APR can land on different options.
This is an estimate based on the numbers you entered, not an offer of credit or a commitment to fund.
Estimates only. Actual terms vary by underwriting. No credit pull to start.
No pressure
Nothing to decide today. When you want a real number for your business, it is a two-minute review with no credit pull.
If the advance looks high
The number is high because the term is short. A line of credit or a longer structure may cost less. See your options, no credit pull to start.
Comparing loans and advances
Yes, that is the point of the APR-equivalent. Loans and lines of credit are quoted in APR, and a line of credit usually costs less over time.
Look at total cost of capital and the APR-equivalent together. The cheapest by total dollars and the cheapest by APR-equivalent can be different options.
A short term raises the APR-equivalent even when the total dollars are lower. The right choice depends on whether you care more about total cost or cash-flow timing.
It is structured as a purchase of future receivables, not a loan, so it is priced with a flat factor rate. You can still estimate an APR-equivalent to compare it against loan products.
Then it may not be the right time or the right product. A quick conversation can surface alternatives, including consolidation or a line of credit.
No. They are estimates from the figures you enter. Actual terms vary by underwriting, and there is no credit pull to start.