Honest comparison of features, costs, and best use cases. Updated 2026.
| Factor | Business Loan | Business Credit Card |
|---|---|---|
| Funding Range | $5K-$5M | $1K-$50K typical limit |
| Cost | APR 7-30% or factor rate | APR 16-29% (variable) |
| Repayment | Fixed term | Revolving, min monthly payment |
| Use Case | Larger one-time needs | Daily expenses, smaller purchases |
| Approval Basis | Business cash flow | Personal credit primarily |
| Build Credit | Business credit usually | Personal credit usually |
| Best For | Larger amounts, expansion | Daily ops, rewards |
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