The short answer
Mechanics compared
| Merchant cash advance | Revenue-based financing | |
|---|---|---|
| What is purchased or repaid | Future card sales or receivables | Share of total revenue |
| Payment source | Card holdback or fixed daily debit | Percentage of bank deposits or fixed amount |
| Payment in slow months | Falls with a holdback; fixed with a debit | Falls with a true percentage |
| Common guideline | About $7,500/month, 3+ months | Similar, deposit-based |
| Best for | Card-heavy businesses | Mixed payment types, ACH, checks |
| Cost structure | Factor rate on amount | Fixed multiple on amount |
For the funding-side breakdown, see the MFE revenue-based financing vs MCA page.
Illustrative example: the same $60,000, two ways
The figures below are illustrations built on stated assumptions, not offers or quotes. Real pricing depends on the full file.
Assumptions: a pet grooming chain with $90,000 a month in deposits. Both options fund $60,000 with a 2% fee ($1,200), and both total $79,800 (1.33x). The MCA uses a fixed daily debit over 200 business days. The revenue-based option takes 8% of deposits.
| Item | MCA, fixed daily | RBF, 8% of deposits |
|---|---|---|
| Net cash received | $58,800 | $58,800 |
| Total repayment | $79,800 | $79,800 |
| Payment in a $90,000 month | $399 a day, about $8,379 | $7,200 |
| Payment in a $70,000 month | $399 a day, about $8,379 | $5,600 |
| Payoff time at $90,000 a month | About 9.5 months | About 11.1 months |
Same total cost, different shape. The fixed debit pays off sooner but bites harder in a slow month. The percentage version flexes but stretches out.
Check what your business qualifies for
Merchant Fund Express reviews revenue-based financing vs merchant cash advance requests from $5,000 to $5,000,000. Scores from 500 are considered, and same-day decisions are common on complete files.
Check funding options with Merchant Fund ExpressWhich fits when
- Choose an MCA if most revenue comes through card terminals and you want the fastest path. A merchant cash advance is also the most widely available option at lower revenue levels.
- Choose revenue-based financing if customers pay by ACH, check, or online invoices, or if your monthly revenue swings and you want payments that flex.
- Choose neither if a working capital loan or line of credit is available at lower cost, which commonly needs about $17,500 a month and 600 to 650+ credit.
Who neither one fits
Businesses with shrinking revenue, owners already carrying several daily debits, and anyone using the money to cover losses rather than to earn. If you are already paying two or three advances, a refinance is the better conversation.
Also check restrictions: many funders restrict residential remodeling, new residential construction, and long-haul trucking.
Funding brings customers. Is your website ready for them?
Whichever structure you choose, payments come out of revenue, so the steadier your online bookings and calls, the easier repayment feels. Cheap Cheap Websites builds professional sites from $399, and Website Care at $30/month includes A/B testing and small edits to keep your booking or quote form doing its job.
Documents for either
- 3 to 4 months of business bank statements.
- Card processing statements, especially for an MCA.
- Photo ID, a voided check, and a short application.
- A list of existing advances and loans with payment amounts.
Questions to ask before signing
- Is the payment a percentage or a fixed amount, and can it be adjusted if sales drop?
- What is the total repayment in dollars, and what is the net amount after fees?
- Is there any discount for paying off early?
- What happens if I change processors or bank accounts?
- Is a UCC lien filed, and what does the guaranty cover?
Related funding guides
Cheap Cheap Websites builds websites. It does not lend or make funding decisions. Funding is offered by our funding partner, Merchant Fund Express, and every request is subject to its review and approval. Figures on this page are illustrations, not offers. Updated October 15, 2026.