A merchant cash advance is usually among the fastest options and easier to qualify for than bank credit, because it's based mainly on your deposits, but it costs more than bank credit and runs for months, not years. Business loans, lines of credit and SBA loans generally cost less but need stronger credit, more paperwork and more time. Invoice factoring suits B2B invoices; equipment financing suits long-life equipment.
Business funding options compared
| Option | Speed | Based mainly on | Paperwork | Cost structure | Term | Best for |
|---|---|---|---|---|---|---|
| Merchant cash advance | In as little as 24 hours after approval with InstaFunders | Deposits and cash flow | Application and bank statements | Fixed cost from a factor rate | Months (up to 10 months with InstaFunders) | Fast needs that pay back within months |
| Business term loan | Weeks at a bank; faster online | Credit, financials, collateral | Tax returns, financial statements, debt schedule | Interest on the balance, plus fees | Often years | Planned, longer-term investments |
| Line of credit | Weeks to set up at a bank; then draw any time | Credit and financials | Tax returns, financial statements | Interest only on what you draw, plus fees | Revolving, usually reviewed yearly | Recurring, unpredictable short-term gaps |
| SBA loan | Commonly weeks to months | Credit, cash flow, collateral where available | The most extensive: tax returns, financial statements, often a business plan | Interest within SBA limits, plus fees | Many years | Property, acquisitions, long-term growth |
| Invoice factoring | Days to set up | Your customers' credit | Invoices and customer details | Fee per invoice, rising the longer it's unpaid | Until each invoice is paid | B2B companies waiting on invoices |
| Equipment financing | Days to weeks | Credit and the equipment's value | Application and equipment quote | Interest or lease rate | Often several years | Long-life equipment |
How to choose
Start with three questions. How soon do you need the money? How long will it take to pay for itself? And what can you realistically qualify for? If you qualify for bank credit and can wait, it will usually cost less. If the need is urgent, short-term and your deposits are your strongest asset, an advance is built for that. The comparisons below go through each pairing in detail, including when the other option is the better choice.
Detailed comparisons
Factor rate vs. interest, speed, paperwork and when a loan wins.
Read more → Revolving creditMCA vs. line of creditA lump sum for one need vs. standby cash you draw as needed.
Read more → Government-backedMCA vs. SBA loanLower cost vs. faster funding, and how to weigh the wait.
Read more → ReceivablesMCA vs. invoice factoringSelling future sales vs. selling specific B2B invoices.
Read more → EquipmentMCA vs. equipment financingWhen to finance a machine over years, and when an advance fits.
Read more →Wondering what the money should pay for? See what businesses use funding for. Ready to check whether you qualify for an advance? The requirements page has the full list.