The HELOC is dramatically cheaper than any MCA. But it requires home equity, takes 5+ days to fund, and puts your home at risk. Here's the honest comparison.
The rate gap between HELOCs and MCAs is enormous. The national average HELOC rate as of May 2026 is 7.26% APR (Bankrate). A comparable MCA might carry an effective APR of 30–60%. For business owners with substantial home equity, using a HELOC to refinance existing MCA positions — or to fund future capital needs — generates material savings. The constraint: you need to own a home, have equity, and be willing to secure business capital with personal real estate.
| Factor | MCA | HELOC (top HELOC partners) |
|---|---|---|
| Rate/Cost | Factor 1.10–1.50 (20–60%+ APR) | 6.65–14.60% APR (avg 7.26%) |
| Funding Speed | Same day – 72 hours | 5 days (top HELOC partners) |
| Collateral | None (unsecured) | Your primary residence |
| Max Amount | $5M+ | $750,000 |
| Min Credit Score | 500+ | 640+ |
| Min Time in Business | 3 months | Not required (homeowner) |
| Risk if Default | Business assets/guarantee | Risk of home foreclosure |
| Draw Structure | Lump sum advance | 100% at closing |
| Repayment | % of daily deposits | Monthly interest payments |
One application reviews your eligibility across all products. No hard credit pull. No cost.
Editorial deep-dives comparing specific lenders side-by-side in this category.