The four alternatives at a glance
A bank decides on collateral, filed accounts and the owner's credit score. Each alternative below decides on something else, which is why a business declined by a bank on Monday can be funded by Thursday. The bank loan sits in the last row for comparison, because if you qualify for it and can wait, it is the cheapest money on the page.
| Product | Funds in | Time in business | Credit score | Secured by | Repayment | Cost on $50,000 |
|---|---|---|---|---|---|---|
| Merchant cash advance | One to three business days | Six months is the floor at nearly every revenue-based funder | Many providers set no minimum; some look for 500 or above | No specific asset; a personal guarantee and a UCC filing are usual | Daily or weekly debits, or a share of card sales | $15,000 at a 1.3 factor over about six months |
| Working capital loan | One to three business days | Six months opens most options | Weighted toward revenue; several providers set no minimum | Usually unsecured | Daily or weekly | Close to the advance if priced as a factor; roughly $4,000 to $10,000 over nine months if priced as interest |
| Equipment financing | One to five days | Six months is a common floor; startup programs exist | Around 600 is typical; specialist programs reach into the 500s with more down | The equipment itself | Monthly | $12,000 to $17,000 of interest over five years on a strong file; more, at rates in the high teens to twenties, with a score in the 500s |
| Business line of credit | One to three days to open; draws the same or next day | Typically a year, often two | Around 600 with most non-bank providers | Secured or unsecured; most carry a personal guarantee either way | Repay what you draw, then draw again | Roughly $1,500 to $2,500 of interest on $50,000 drawn for 90 days |
| Bank or SBA loan, for comparison | Four to eight weeks | Two years of filed accounts is common | Typically 650 or better | Usually collateral: 81% of small banks often or always require it, even on small loans | Monthly | The lowest, if you qualify |
Let the reason for the no pick the alternative
Each product was built to read past a particular gap in a bank's file. No collateral or a low score points to an advance or a working capital loan; a machine or vehicle points to equipment financing; a gap that keeps coming back points to a line of credit. Our guide to why banks decline small businesses matches each of the five common reasons to a product, with the federal figures behind them.
If you already sell through PayPal, Shopify or Stripe
Some payment platforms make their own funding offers to businesses that process sales through them, sized on that platform's sales history and repaid as a share of those sales. PayPal says its Working Capital loan is repaid as a percentage of each PayPal sale plus one fixed fee, with a minimum payment every 90 days, and is based on PayPal account history rather than a personal credit check. Shopify Capital is repaid from a fixed percentage of the store's daily sales, with loans issued by WebBank. Stripe Capital charges one flat fee and deducts a fixed percentage of Stripe sales until the balance is paid.
An independent advance or working capital loan usually fits better when your sales run through more than one processor or much of it is cash, when the platform's offer is smaller than the need, or when you want more than one offer to compare. Either way, compare the total dollars repaid. We have no relationship with any of these platforms.
Cheaper options we do not place: SBA loans, credit unions and CDFIs
If the need can wait weeks rather than days and your file is close to a bank's bar, these are worth an application before anything on this page. SBA 7(a) loans come from participating lenders with part of each loan guaranteed by the SBA. SBA microloans are smaller loans made through nonprofit, community-based intermediaries. Credit unions and Treasury-certified Community Development Financial Institutions often lend to businesses banks turn down.
They usually cost less than revenue-based funding and take longer, with their own paperwork and qualification bars. We do not place any of them; the SBA and the CDFI Fund list them directly.
How to compare two offers
Total dollars repaid minus the amount you receive, with every fee included. Then the term, because the same cost over a longer term means a smaller payment. Then whether repaying early saves anything: it does when the cost is interest, and does not when it is a fixed factor.
Ask every provider for the total repayment in writing before you sign. Several states now require a funder to disclose it on a standard form, and a provider reluctant to put the number on paper has told you something. In the Federal Reserve's 2025 Small Business Credit Survey, 60% of firms that borrowed from an online lender said the cost was higher than they expected, against 37% at small banks.
Where an application here fits
We are a marketplace, not a lender. One application is matched to lenders in our network who fund your industry, your state and your revenue band; they make their own credit decisions. Decisions typically come back within 24 hours, and funds can land in as little as 72 hours once the file is complete. There is no fee to apply and no obligation to accept an offer.