✓ Funded in 24 hours✓ 500+ credit OK✓ $25K–$5M✓ Soft credit pull✓ Apply in 1 minute
Compare · 2026

Merchant Cash Advance vs Term Loan for Contractors

Fast and flexible, or cheaper and predictable? Here's the real cost trade-off.

$25K–$5Mfunding range
24 hrstypical funding
500+credit scores OK
Contractors& builders
No collateralfor working capital

See how much your contracting business qualifies for

$25K to $5M for contractors and builders — approved on your revenue, funded in as little as 24 hours. No collateral for working capital.

  • ✓ 500+ credit
  • ✓ 6+ months open
  • ✓ $10K+/mo revenue
1-Minute Application

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Start your application in about a minute. A real decision fast — soft credit pull, no obligation.

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🔒 Soft credit pull · will not affect your credit score

Short answer: A merchant cash advance is the fastest and most credit-flexible option but is priced with a factor rate that can be costly. A term loan carries a lower effective cost and predictable payments but needs stronger revenue and a bit more time. If you can qualify for a term loan, it usually costs less; if you need cash today with weaker credit, an MCA fills the gap.

Reviewed by the Funded Contractor Capital Funding Team · Updated July 2026

How funding works, step by step

From application to funding in four steps — most contractors complete it within a day.

1

Apply in 5 minutes

Complete a short online application. It uses a soft credit pull that does not affect your score.

2

We review your deposits

Approval is based on your last 3 months of business bank statements — not tax returns or the contract.

3

Get your offer

Review your amount and terms up front, with any fees disclosed before you accept. No obligation.

4

Get funded

Sign and receive funds by ACH, often within 24 hours of approval.

MCA vs term loan

How the two compare on cost and speed.

CriteriaMerchant Cash AdvanceTerm Loan
PricingFactor rate ~1.2–1.5Interest rate
Cost as you repayFixed — doesn't dropDrops as balance falls
SpeedSame day – 24 hours24 hours – 3 days
CreditMost flexibleNeeds stronger revenue
Best forFast cash, weak creditLower cost, predictable

Why contractors fund with us

  • One application shows you every option you qualify for
  • FICO 500+ accepted; approval on revenue
  • Funds in as little as 24 hours
  • We recommend the lowest-cost fit, not the priciest
  • Fixed payments or revenue-share — your choice

What you need to apply

  • US-based contracting business
  • 6+ months in business
  • ~$30,000+ in monthly revenue
  • Last 3 months of bank statements
  • Valid EIN and business bank account

Frequently asked questions

Which is cheaper, an MCA or a term loan?
A term loan usually has a lower effective cost because interest drops as you pay down the balance, while an MCA's factor rate is fixed. If you qualify for a term loan, it typically costs less.
Why would a contractor choose an MCA?
Speed and flexibility — an MCA can fund the same day and accepts weaker credit when a term loan isn't available in time.
Which option can I get fastest?
Most of these fund within 24 hours of approval. The application takes about 5 minutes with a soft credit pull that doesn't affect your score.
Can I qualify with bad credit?
Yes — FICO 500+ can qualify, because approval is weighted toward revenue and bank-deposit consistency rather than credit score.
Is this a business loan or a cash advance?
Both are available. The right structure depends on your revenue, credit, and how you prefer to repay — fixed payments or a share of your deposits. We show you the options you qualify for before you commit.
What can I use the funds for?
Any legitimate business purpose — payroll, materials, equipment, mobilization, covering the gap between draws, or growth. There are no restrictions on how you deploy working capital.
Are there any upfront fees to apply?
No. Applying and getting a decision is free, and any fees are disclosed in your offer before you accept — so there are no surprises.

Sources & further reading

Figures on this page are typical 2026 industry ranges provided for general information; your actual terms are set at application.

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Apply in 5 minutes with a soft credit pull.

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Comparisons reflect typical 2026 industry structures for general information and vary by lender and underwriting; your actual terms are set at application. Product and company names referenced are the property of their respective owners.

Get funded in 24 hours

Approved on your revenue, not just your credit. Start your 1-minute application.

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Why contractors choose us

Capital built for builders — mobilization, equipment, materials, and payroll between draws.

🏗️

Built for builders

GCs, subs, and specialty trades. Design-build, draw funding, and growth capital sized to your jobs.

⚡

Funded in 24 hours

Win a bid, buy materials, or bridge a slow-paying GC — decision in as little as 4 hours.

📊

Approved on your revenue

500+ FICO accepted. We underwrite on your deposits and receivables, not just your score.

Ready to get funded?

Approved on your deposits, not just your score. Funded in as little as 24 hours.

START MY 1-MINUTE APPLICATION →
Apply Now — Funded in 24 Hours →
Before you go

See how much your contracting business qualifies for

$25K–$5M · funded in 24 hours · 500+ credit OK. A soft credit pull that will not affect your score.

START MY 1-MINUTE APPLICATION →

No obligation · takes about a minute