# Merchant cash advance vs. bank loan vs. SBA loan

Source: https://revenuenotcredit.com/guides/merchant-cash-advance-vs-bank-loan

Each option fits a different situation. Here's an honest comparison so you can choose the right one for your business.

## Bank loans

**Best for:** established businesses with strong credit, several years of tax returns, and time to wait. **Cost:** usually the lowest. **Speed:** often weeks. **Watch out for:** strict credit and collateral requirements, which is why many owners get turned down.

## SBA loans

**Best for:** larger, longer-term needs like buying property or equipment. **Cost:** low, with long terms. **Speed:** often the slowest, with heavy paperwork. If you might qualify, an SBA loan is worth pursuing first.

## Lines of credit

**Best for:** flexible, recurring needs. **Cost:** varies widely. **Requirements:** often credit-driven, similar to bank loans.

## Merchant cash advance

**Best for:** businesses with money coming in every month that need funding fast or were turned down by a bank. **Cost:** higher, shown as a factor rate, commonly around 1.15 to 1.5. **Speed:** funders often respond within a day or two once your application and statements are in. **Requirements:** based on your deposits, not your credit score. [How it works](https://revenuenotcredit.com/guides/how-merchant-cash-advance-works).

## How to decide

If you have time and strong credit, start with a bank or SBA lender. If you need speed, or the bank already said no, revenue-based funding can bridge the gap. Whatever you choose, compare the *total payback* and the payment schedule, not just the headline amount.

_General information only. Every funder sets its own terms; offers show exact numbers before signing._