Honest comparison of features, costs, and best use cases. Updated 2026.
| Factor | Merchant Cash Advance | Business Line of Credit |
|---|---|---|
| Funding Type | Lump sum, future receivables | Revolving credit limit |
| Repayment | Daily % of card sales | Pay only on drawn amount |
| Min Credit | 500+ FICO | 650+ FICO |
| Speed | 4hr decision, 1 day funding | 24-48 hours |
| Cost | Factor 1.10-1.49 (high) | APR 8-30% |
| Best For | Strong card sales, fast cash | Fluctuating ongoing needs |
| Reusable | No (one-time advance) | Yes (revolving) |
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