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Best ways to refinance a merchant cash advance in 2026
The best way to refinance a merchant cash advance is a term loan with a monthly payment, which replaces daily remittance and stretches repayment. A line of credit can do the same for a smaller balance, and owners with property can use home equity. The goal is to lower the payment you make each week, not to add a second advance on top of the first.
By the WithFunded team · Published November 11, 2026 · Rates as of November 2026
The short list
- Best overall
- Online term loan
- Best for a smaller remaining balance
- Business line of credit
- Best for businesses with owned equipment
- Equipment sale-leaseback
- Best rate for owners with home equity
- Home equity line of credit
The 4 best options, ranked
1. Online term loan Best overall
A term loan turns a daily debit into one monthly payment over one to five years. Even at a mid-range rate, the weekly cash drain usually falls substantially.
Watch for: A longer term lowers the payment but raises the total interest you pay. Term loan guide →
2. Business line of credit Best for a smaller remaining balance
If only a modest balance is left, a draw on a line can clear it and be repaid on your own schedule.
Watch for: Some lenders add draw or maintenance fees, and a limit can be cut at renewal. Business line of credit guide →
3. Equipment sale-leaseback Best for businesses with owned equipment
Selling paid-off equipment to a funder and leasing it back raises cash to retire the advance without an unsecured approval.
Watch for: You turn an asset you own into a monthly payment, so the cash has to earn more than it costs. Equipment financing guide →
4. Home equity line of credit Best rate for owners with home equity
A home equity line carries a much lower rate than an advance. It secures a business debt with your house, so use it only if the business is fundamentally sound.
Watch for: Your home is the collateral, even though the money funds the business. HELOC guide →
Side-by-side comparison
| Option | Verdict | Cost basis | Funding speed | Qualifies on |
|---|---|---|---|---|
| Online term loan | Best overall | Representative 8%–30% APR, fixed payments over 6 to 60 months | Days | Revenue, time in business, and credit |
| Business line of credit | Best for a smaller remaining balance | Representative 8%–30% APR, charged only on what you draw | Often days | Revenue, time in business, and credit |
| Equipment sale-leaseback | Best for businesses with owned equipment | Lease-style pricing on equipment you already own | Days to weeks | The resale value of equipment you own free and clear |
| Home equity line of credit | Best rate for owners with home equity | Typically prime (7.00%) plus a lender margin | Slower than unsecured options: expect an appraisal and title work | Your home equity and personal credit |
What it costs
Fast working capital is usually priced as a factor rate: a multiplier on the amount advanced. The total you repay is fixed up front, whatever the payment schedule.
| Advance | Payback at 1.20 | Payback at 1.25 | Payback at 1.30 |
|---|---|---|---|
| $40,000 | $48,000 | $50,000 | $52,000 |
| $80,000 | $96,000 | $100,000 | $104,000 |
| $150,000 | $180,000 | $187,500 | $195,000 |
A $80,000 advance at a 1.25 factor means $100,000 in total payback, a $20,000 cost of capital. Compare offers by total payback and by how fast you must repay, not by a headline percentage. Illustrative factor rates. Actual factors are set by the lender. WithFunded calculation.
Monthly payments on a standard fixed-payment loan at the representative 8%–30% APR band. The low end of each range is 8% APR and the high end is 30% APR.
| Amount | 24 mo | 36 mo | 60 mo |
|---|---|---|---|
| $50,000 | $2,261–$2,796 | $1,567–$2,123 | $1,014–$1,618 |
| $100,000 | $4,523–$5,591 | $3,134–$4,245 | $2,028–$3,235 |
| $200,000 | $9,045–$11,183 | $6,267–$8,490 | $4,055–$6,471 |
Financing $100,000 over 36 months costs about $3,134–$4,245 a month, or $12,811 to $52,826 in total interest, depending on the rate you qualify for. WithFunded calculation, representative 8%–30% APR band. Not a quote.
What lenders look at
- Payoff letters showing the exact balance on each advance.
- Revenue trend. Lenders refinance advances for healthy businesses that took expensive money, not for declining ones.
- How many advances are outstanding.
Mistakes to avoid
- A reverse consolidation that adds a new funder's payment on top of the existing ones and lengthens the total cost.
- Stopping payments or changing bank accounts to block debits. Advance contracts carry serious default remedies.
Frequently asked questions
- Can you refinance a merchant cash advance?
- Yes, with a term loan, a line of credit, or secured financing, if the business qualifies. The new financing pays the advance off and replaces daily payments with a longer schedule.
- Can an SBA loan pay off a merchant cash advance?
- SBA rules have restricted using 7(a) loan proceeds to refinance merchant cash advances. Ask an SBA lender about the rules currently in effect before counting on it.
- Is there a discount for paying an advance off early?
- Sometimes. A factor-rate advance fixes the total payback up front, so early payoff saves nothing unless the contract includes an early-payment discount. Read it or ask the funder.
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How we ranked these options
This guide ranks types of financing, not individual lenders. Each option is ordered by how well it fits the need described on this page, judged on four things in this order: whether the structure matches how the money will be used and repaid, total cost, funding speed, and how hard it is to qualify. Cost figures are WithFunded calculations from published rate inputs as of November 2026: the bank prime loan rate from the Federal Reserve, the SBA maximum-rate schedule, and Federal Reserve survey data. The method follows our 2026 SMB Financing Cost Report, whose own figures use June 2026 rates.
WithFunded is a financing marketplace, not a lender. Our 2-minute form suggests a product type from the families we cover, and a funding partner reviews the request. Not every structure named in this guide is available through WithFunded: options such as SBA microloans, USDA farm loans, bank loans, and seller financing are ones you would pursue directly with the provider. They are listed because leaving out a good fit would make the ranking less useful.
Related guides
The top-ranked option on this page is online term loan because it fits the most common version of this need. Your own best fit depends on your revenue, time in business, credit, and how fast you need the money.
Disclaimer. WithFunded and Big Think Capital are a financing marketplace; we are not the direct lender and do not guarantee funding, approval, rates, or terms. Everything on this page is a representative example only — not an offer or a commitment to lend, and not financial advice. Actual rates, fees, payments, and terms are set by the funding lender and depend on your business, credit, and the product. Where required by state law, the lender provides cost-of-financing disclosures before any agreement is signed.