MCA vs term loan vs SBA

Loanable is a marketplace, not a lender. This page explains the products its 150+ lending partners commonly offer, from $5,000 up to $50 million.

Side-by-side

Merchant cash advance Term loan Line of credit SBA loan
What it is Purchase of future sales Lump sum, fixed schedule Revolving draws Government-backed loan from an SBA lender
Typical speed As soon as 24 hours Days Days Weeks
Best for Fast working capital tied to sales One-time investment Repeating or uneven expenses Larger, cheaper, slower capital
Who funds it on Loanable? MCA provider Term lender LOC lender SBA lending partner — not Loanable

Merchant cash advance

An MCA is not a traditional loan. The business receives a lump sum and remits a share of sales or a fixed ACH until the purchased amount plus a factor is collected. It is often the fastest path on the marketplace. Details: merchant cash advance.

Term loan

A term loan is a lump sum repaid in installments over a set term. Payments are predictable, which helps when the use of funds is a defined project. Details: term loans.

Business line of credit

A line of credit stays available. You draw, repay, and draw again up to a limit, usually paying interest only on what you use. Details: business line of credit.

SBA loan

SBA 7(a) and 504 loans are made by SBA lenders, not by Loanable. They often have lower rates and longer terms, and they take longer to close because of extra underwriting. Details: SBA loans.

How to use this on Loanable

One free application can surface more than one product type. You compare offers and accept none, one, or later apply again. Pre-qualification uses a soft credit check. Loanable does not guarantee approval on any product.

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Frequently asked questions

Straight answers about Loanable and this product

An MCA purchases future sales and often funds fastest. A term loan is a lump sum with a fixed repayment schedule. An SBA loan is government-backed, usually cheaper and slower, and is made by an SBA lender. Loanable is a marketplace that can match a business to all three; it does not originate them.

Merchant cash advances and some short-term products can fund as soon as 24 hours. Lines of credit and term loans are often days. SBA loans typically take weeks.