Educational articles about loans, credit, and funding. For general information only — not financial advice.
Factoring sells your unpaid invoices at a discount. It is not debt, it prices differently, and it brings a third party into your customer relationships.
An MCA is priced with a factor rate, not an interest rate, and repaid from daily receipts. Both facts hide the true cost — here is how to see it.
One is a limit you draw against as needed; the other is a lump sum with a fixed end date. Matching the structure to the need matters more than the rate.
The average SBA microloan is about $13,000 — and it comes from a nonprofit intermediary, not a bank.
These two programs are not competitors so much as different tools. What you are buying usually decides which one applies.
A 504 loan buys long-lived fixed assets — property and heavy machinery. It cannot fund working capital or inventory, and that limit is the point.
The SBA does not lend you the money — it guarantees part of what a lender lends. That one fact explains most of how 7(a) works.
Federal student loans are capped in two directions at once: per year and over your whole education. Here is how the caps interact.
A credit-builder loan reverses the usual order: you pay first and receive the money afterwards. Here is what that is for and what to compare.
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