MCA vs. Line of Credit — True Cost & Use Cases
Last reviewed: September 09, 2025
Merchant Cash Advances (MCA) and Business Lines of Credit (LOC) are two of the most common ways to unlock working capital. Both can help, but they serve very different purposes. At QuickWave, we explain the trade‑offs in plain English so you can decide what fits your business best.
When MCA Makes Sense
- Cash crunches: Cover payroll, emergency repairs, or vendor discounts when speed matters.
- Seasonal surges: Stock up on inventory for holidays or peak seasons without waiting for receivables.
- Credit‑challenged approvals: Decisions driven by deposits and cash flow—not just credit scores.
- Fast turnaround: Funding possible in 24–72 hours with minimal documentation.
Pro‑tip: MCA is about speed and flexibility. It’s rarely the cheapest option, but often the most practical bridge when time is critical.
When LOC Wins
- Ongoing working capital: Ideal for recurring but uneven needs, like covering slow receivables.
- Project funding: Renovations, marketing pushes, equipment upgrades, or new hires.
- Interest savings: Pay only on what you draw, not the entire approval amount.
- Bank readiness: LOC history often helps position you for future traditional bank loans.
Side‑by‑Side Comparison
| Feature | MCA | Line of Credit |
|---|---|---|
| Speed | 24–72 hrs | 5–10 business days |
| Docs needed | 3–6 months bank statements | Financials, tax returns, sometimes collateral |
| Repayment | Daily/weekly fixed splits | Monthly, flexible |
| Best for | Short‑term cash gaps | Longer projects & recurring needs |
QuickWave’s Pro‑Business Approach
We don’t push one product over another—we align tools with your cash flow reality. For some clients, an MCA is the bridge. For others, a LOC is the runway. Often, we help transition clients from MCA into LOCs or even asset‑backed lending once revenue stabilizes.