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Compare · 2026

MCA vs Revenue-Based Financing

They look similar but aren't. Here's how an MCA and revenue-based funding differ for contractors.

Short answer: Both repay from your deposits, but revenue-based financing often carries a lower effective cost and its payment flexes more cleanly with revenue, while a straight MCA is the fastest, most credit-flexible option. For most contractors, revenue-based is the smarter default. Contractor Capital Advance offers both, FICO 500+.

Reviewed by the Contractor Capital Advance 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 revenue-based

How they compare.

FeatureMCARevenue-Based
CostFactor rate ~1.2–1.5Often lower effective cost
PaymentFixed daily/weekly or %Flexes with deposits
Best forFastest, weakest creditMost contractors
Speed24 hours24 hours

How we help

  • We default you to the lower-cost option
  • Revenue-based flexes with your deposits
  • FICO 500+ accepted; approval on revenue
  • Fast decisions
  • Soft credit pull — no score impact
  • Honest cost comparison before you sign

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

What's the difference between an MCA and revenue-based financing?
Both repay from deposits, but revenue-based funding often costs less and flexes more cleanly with revenue; an MCA is the fastest, most credit-flexible option.
How fast can I get funded?
Most contractors fund within 24 hours of approval; the application takes about 5 minutes with a soft credit pull.
Do I need good credit?
No — FICO 500+ can qualify because approval is weighted toward revenue and deposits.
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.

Get the smarter option

Apply in 5 minutes with a soft credit pull.

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Figures and factor-rate examples shown are illustrative 2026 ranges and vary by underwriting; actual terms are set at application. A merchant cash advance is a commercial financing product, not a loan in all states. Product and company names referenced are the property of their respective owners.