Cost Comparison · Updated Q1 2026
SBA 7(a) vs MCA: $250K Capital Cost Over 5 Years
The single most expensive financial decision a small business owner can make is choosing an MCA when they qualify for SBA. This stat shows the true 5-year delta in dollars — not basis points.
The data
Side-by-side total dollars paid for the same $250K of working capital across financing options.
| Product | 5-year total paid | Cost over principal |
|---|---|---|
| Inflection Financing SBA 7(a) (Prime + 2.75%) | $315,400 | $65,400 |
| Inflection Financing Term Loan (11.9%) | $331,200 | $81,200 |
| Bank Conventional (9.5%) | $316,800 | $66,800 |
| Online Term (OnDeck-tier, 35%) | $478,000 | $228,000 |
| MCA (1.32 factor, 9-mo, renewed) | $652,000 | $402,000 |
| Stacked MCA (1.45 factor, renewed) | $815,000 | $565,000 |
Methodology
Total cost = sum of all principal + interest + fees over 5 years. MCAs assumed to be replaced every 9 months at same cost (typical renewal cycle).
Key takeaways
- →Choosing an MCA over SBA on $250K costs $336,600 extra over 5 years — enough to fund a second location.
- →Even a 'cheap' Tier-1 MCA costs 3.5× more than SBA over a 5-year horizon.
- →Every Inflection Financing SBA refinance of an MCA position immediately stops the renewal cost spiral.
Citation: Inflection Financing Commercial Lending Data, "SBA 7(a) vs MCA: $250K Capital Cost Over 5 Years" (Q1 2026). Available at inflection-financing.com/data/sba-vs-mca-true-cost-comparison.
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