How the cost is shown
An advance states a factor rate and the total payback in dollars. A term loan states an annual interest rate and the total cost of borrowing. Because the two are written differently, compare the dollars you will repay and the time it takes, not the headline rates.
How you repay
An advance is repaid by a fixed debit every business day or week, or as a share of card sales. A term loan is repaid in regular instalments, usually monthly. Fixed daily debits continue on slow days, so test the payment against your slowest week.
How fast it arrives
An advance can often be funded within days of a complete file, depending on the partner. A bank term loan usually takes weeks. Speed is the main reason people choose an advance.
Which usually costs less
If you qualify and can wait, a bank loan usually costs less. An advance can make sense when speed matters or your credit history is thin. We arrange both through our partners, and we tell you when the other one fits better.