Two paths to capital. One may be faster than you think.
When your business needs capital, you’re instantly flooded with choices:
SBA loans
Term loans
Lines of credit
Equipment financing
And… Merchant Cash Advances (MCAs)
If you’re growing fast and evaluating your options, it’s important to know what actually fits your needs. Let’s break down the difference — real talk, no fluff.
🏛️ Traditional Term Loans: Great on Paper, Tough in Practice
What it is:
A lump sum of capital repaid in fixed monthly installments over a set term, often 2–10 years. Usually offered by banks or SBA lenders.
✅ Pros:
Lower interest rates (if approved)
Long repayment terms
Good for stable, long-term expansion
❌ Cons:
Weeks (or months) to get approved
Requires excellent credit (680–700+)
Paperwork overload
Not ideal for urgent funding needs
Often inflexible if you want to pay off early
Verdict:
Best for well-established businesses with time to wait and stellar financials. Not great for fast-moving companies who need capital yesterday.
⚡ Merchant Cash Advance (MCA): Fast, Flexible, and Built for Speed
What it is:
A lump sum based on your future revenue — repaid daily or weekly as a percentage of your sales.
✅ Pros:
Approvals in hours, funding in under 24 hours
Accepts credit scores as low as 500
Minimal paperwork
Great for businesses with daily sales
No collateral required
Flexible use: inventory, payroll, marketing, expansion
❌ Cons:
Shorter terms (3–12 months)
Higher cost of capital (but tradeoff is speed + flexibility)
Verdict:
Ideal for scaling businesses that need capital fast, don’t want to jump through hoops, and value action over approval delays.
📊 Side-by-Side: MCA vs. Term Loan
| Criteria | Term Loan | Merchant Cash Advance |
|---|---|---|
| Speed | Weeks to months | Same-day possible |
| Credit Score | 680+ | 500+ |
| Time in Business | 2+ years | 6+ months |
| Paperwork | Extensive | Minimal |
| Collateral | Often required | Not required |
| Use of Funds | Often restricted | Fully flexible |
| Best For | Long-term growth | Fast-moving businesses |
💼 Real Talk From the Field
We’ve worked with business owners who waited months chasing a term loan—
Only to get denied after stacks of paperwork and phone calls.
Others came to us and got funded within a day using an MCA.
They used it to:
Open a second location
Buy discounted inventory in bulk
Bridge payroll gaps during a growth wave
The difference? They moved when it mattered — not after the opportunity passed.
💬 So… Which Is Right for You?
Do you need capital fast?
Is your credit score below 680?
Do you value flexibility over red tape?
If yes — an MCA might be the better fit.
At LumenPoint Capital, we help small businesses access $30K–$1M+ in funding, fast. No fluff. No hassle. Just smart capital that fits your needs.
🎯 Ready to Explore Your Options?