Choosing between merchant funding and traditional bank loans can be challenging. This article breaks down the key differences to help you decide which is right for your business.
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Speed of Approval
Merchant funding offers quick approvals, often within 24-48 hours, while bank loans can take weeks or even months. -
Flexibility in Usage
Unlike traditional loans with strict guidelines, merchant funding allows you to allocate funds where they’re needed most. -
Eligibility Requirements
Merchant funding focuses on cash flow and sales history, whereas banks often require strong credit scores and extensive collateral. -
Repayment Structure
Merchant funding repayments are typically tied to sales, offering a dynamic structure, while bank loans require fixed monthly payments.
Merchant funding is ideal for businesses seeking speed and flexibility, while traditional bank loans may suit those with time and extensive documentation. Evaluate your needs and choose wisely.