QuickBooks Capital vs a merchant cash advance: what each really costs
For a borrower who meets its requirements, a QuickBooks Capital loan usually costs less than a merchant cash advance. Its term loans are priced at 9.99% to 36% APR with no origination fees. An MCA quotes a factor rate instead, which often works out to triple-digit APR. Illustration, not a quote: $50,000 at a 1.35 factor costs about 126% APR.
By MCAFax - Last updated: October 9, 2026
General information, not legal or financial advice.
QuickBooks Capital is a loan program. A merchant cash advance is a purchase of your future sales. They're priced in different units, so they're hard to compare until you convert one into the other. This 2026 guide does that conversion with the same $50,000.
The short answer
QuickBooks Capital facts below are from Intuit's QuickBooks Capital FAQ, term-loan, line-of-credit and loans pages, checked October 8, 2026. MCA terms vary by provider and contract.
| QuickBooks Capital | Merchant cash advance | |
|---|---|---|
| Pricing | APR: 9.99% to 36% on term loans; 13.49% to 35.99% on the line of credit | Factor rate (for example 1.35), not an interest rate |
| Fees | No origination, prepayment or late fees on term loans, per Intuit | Varies; fees are often taken out of the advance up front |
| Amounts | Term loans of $1,500 to $250,000 (an Intuit page for accountants says up to $200,000); lines of $1,000 to $100,000 | Usually sized to your sales or bank deposits |
| Term | 6 To 24 months | Until a set payback amount is collected |
| Payments | Fixed payments on a set schedule | Daily or weekly debits, or a percentage of sales |
| Credit | Personal guarantor FICO of 620 or higher on the current FAQ (580 on an older help page) | Providers tend to weigh deposits more than credit score |
| Requirements | Active QuickBooks Online account and at least $50,000 in revenue in the last 12 months | Mainly a record of bank deposits |
| Speed | Decision in a few minutes; funds typically in 1 to 2 business days, per Intuit | Often the same day or next day |
| Who provides it | Loans issued by WebBank | The MCA provider buys a share of your future receivables |
The QuickBooks Capital line of credit also offers invoice financing on QuickBooks invoices of at least $258 that are no more than 30 days past due, per Intuit.
What a factor rate is, and why it isn't an interest rate
A factor rate is a multiplier. Multiply it by the advance and you get what you pay back: $50,000 x 1.35 = $67,500. That $17,500 is fixed when you sign.
That's the key difference from a loan:
- Time doesn't change the payback. Interest on a loan builds over time, so paying early usually saves money. With most advances, the payback is the same whether you finish in four months or eight, unless the contract offers an early-payoff discount. Read that part of the contract.
- A shorter payback means a higher APR. The same $17,500 collected over fewer days is a more expensive use of money.
- Fees can come off the top. If a fee is deducted from the advance, you receive less than $50,000 but still owe the full $67,500.
How to convert a factor rate to APR
In words: list the cash you actually receive, then every payment you make and when. The APR is the yearly rate that makes those payments worth exactly what you received. With daily debits, you find the rate per business day and multiply by 252 business days a year (52 for weekly, 12 for monthly). That gives a nominal APR, the same way a loan's APR is quoted.
The worked example below uses exactly that method. To run your own numbers, use our cost of capital calculator. Your numbers stay in your browser.
Worked example: $50,000 three ways
Illustration, not a quote.
| QuickBooks term loan at 9.99% APR | QuickBooks term loan at 36% APR | Merchant cash advance at a 1.35 factor | |
|---|---|---|---|
| Amount received | $50,000 | $50,000 | $50,000 (No fees assumed) |
| Payments | 12 Monthly payments of about $4,395.56 | 12 Monthly payments of about $5,023.10 | 126 Business-day debits of about $535.71 (about 6 months) |
| Total paid back | About $52,747 | About $60,277 | $67,500 |
| Cost of the money | About $2,747 | About $10,277 | $17,500 |
| APR | 9.99% | 36% | About 126% (125.9%) |
Assumes monthly payments for the loan. Intuit describes fixed payments on a set schedule; your schedule is in your offer.
The inputs for the advance: $50,000 received, factor rate 1.35, $0 in up-front fees, payback $67,500, collected in 126 equal business-day debits of $67,500 / 126 = $535.71. The rate per business day that makes those 126 payments worth $50,000 is about 0.4996%. Times 252 business days, that's about 125.9% APR.
How it changes:
- Weekly instead of daily: the same $67,500 in 26 weekly payments of about $2,596.15 works out to about 123% APR.
- With a 3% fee taken up front: you receive $48,500 but still pay back $67,500 over 126 business days, and the APR is about 140%.
In this example, the advance costs $17,500 for the same $50,000 that costs about $2,747 to $10,277 as a QuickBooks term loan.
When an MCA might still be the only option
Sometimes an advance is what's left. The honest cases:
- You've been declined by every cheaper option, including your bank, SBA lenders and community lenders.
- You need the money the same day, and the cost of waiting is bigger than the cost of the advance.
- Your sales are seasonal, and payments that rise and fall with sales fit better than a fixed loan payment.
Before you sign, check four things:
- The total payback in dollars. One number.
- The factor rate and the term, and convert them to an APR with the calculator.
- Every fee, and whether it comes out of the advance.
- The debit next to your deposits. If the daily debit is bigger than your slowest day's deposits, the advance will squeeze your cash before it helps.
For cheaper options first, see merchant cash advance alternatives. If MCA broker calls won't stop, see how to stop MCA broker calls.
Can QuickBooks Capital pay off an MCA?
We found no mention of merchant cash advance refinancing on the QuickBooks Capital pages we read (checked October 8, 2026). Ask Intuit directly before counting on it.
SBA has a specific rule. Under SOP 50 10 8.1, a 7(a) loan can refinance an MCA only if it was converted to a term loan that has amortized for at least 24 months, with no new advance since. See SBA 7(a) MCA refinance rules. If a broker, packager or consultant is paid to help with a 7(a) or 504 loan, the fee goes on SBA Form 159 (13 CFR 103.5).
If you don't qualify for QuickBooks Capital
Not on QuickBooks Online, credit under 620, revenue under $50,000 or a recent bankruptcy? You still have options cheaper than an advance, including your bank's line of credit, SBA Microloans and SBA 7(a) loans through SBA Lender Match.
See QuickBooks Capital alternatives for what to try, reason by reason, or where to get business funding for every option.
Background
For the business story behind QuickBooks Capital, read Is Intuit getting into business lending?. For the program's terms, see our QuickBooks Capital review.
Sources
- Intuit, QuickBooks Capital FAQ (help article), checked October 8, 2026: 620 FICO, $50,000 revenue, QuickBooks Online requirement, invoice financing terms. Cited by name; not linked.
- Intuit, older QuickBooks Capital help page, checked October 8, 2026: 580 FICO. Cited by name; not linked.
- Intuit, QuickBooks term loans page, checked October 8, 2026: $1,500 to $250,000; 6 to 24 months; 9.99% to 36% APR; no origination, prepayment or late fees. Cited by name; not linked.
- Intuit, QuickBooks line of credit page, checked October 8, 2026: $1,000 to $100,000; 13.49% to 35.99% APR; invoice financing. Cited by name; not linked.
- Intuit, QuickBooks loans hub, checked October 8, 2026: decision speed, 1 to 2 business days to fund, WebBank as issuer. Cited by name; not linked.
- Intuit, QuickBooks Capital page for accountants, checked October 8, 2026: $200,000 term-loan maximum. Cited by name; not linked.
- Intuit Inc., Form 10-Q for the quarter ended January 31, 2026 (SEC EDGAR): business loans originated through an originating bank partner. https://www.sec.gov/Archives/edgar/data/896878/000089687826000014/intu-20260131.htm
- U.S. Small Business Administration, Lender Match: https://www.sba.gov/loans/lender-match
- U.S. Small Business Administration, SOP 50 10 8.1 (effective October 1, 2026): https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs
- 13 CFR 103.5, agent compensation and SBA Form 159 (eCFR): https://www.ecfr.gov/current/title-13/chapter-I/part-103/section-103.5
Example numbers are illustrations, not quotes. Loan totals assume 12 equal monthly payments at the stated APR. The MCA APR is the business-day rate that sets 126 equal payments of $535.71 equal to $50,000 received, times 252. Your contract governs.
Last updated: October 9, 2026
Rules and agency pages in this area change. If something here is out of date, tell us at info@mcafax.com and we will fix it. MCAFax is not a law firm or a lender, and this is not legal or financial advice.