Quick answer
Stripe Capital is materially cheaper than generalist MCA for eligible Stripe merchants: effective APR typically 12-25% vs MCA's 40-90%. But Stripe is invitation-only based on Stripe processing history, caps at ~$500K, and holdback comes off Stripe payouts only. For non-Stripe processors, multi-channel businesses, or amounts over $500K, MCA still wins on availability — just not on price.
Full answer
Headline pricing comparison (2026). Stripe Capital: typical fixed-fee 6-18% of advance, repaid via 5-25% holdback on Stripe payouts, 6-18 month effective term. Translating to APR-equivalent: a $100K advance at $9K fee over 12 months (~9% holdback) ≈ 16% APR. Generalist MCA on the same merchant: factor 1.30-1.45 on $100K over 6-9 months ≈ 60-90% APR. Stripe is 3-5x cheaper on the same dollar amount when both are available.
Why Stripe is cheaper. Stripe owns the payment rail; collection risk is near zero (holdback comes off settled payouts before they ever leave Stripe). Underwriting uses real-time processing data — no broker chain, no application friction, no ISO commission markup. Stripe Capital effectively functions as a balance-sheet receivables advance, not a third-party MCA. The 0% broker layer alone saves 6-19% of advance value.
Where MCA wins. (1) Eligibility: Stripe Capital is invitation-only — you can't apply, Stripe selects merchants based on processing history (typically 6+ months, $50K+ annual GMV on Stripe). MCA is application-based and accepts $25K+/mo revenue, 600+ FICO, 6+ months operating. (2) Channel coverage: Stripe holdback comes off Stripe payouts only — if Stripe is 40% of your revenue, your effective repayment speed slows accordingly. MCA pulls from total bank deposits. (3) Amount cap: Stripe maxes around $500K for largest merchants; MCA can stack to $1M+. (4) Speed: Stripe funds in 1-2 days if pre-approved; MCA funds in 24-72h.
Detailed cost example, $100K need, 12-month horizon. Stripe Capital (eligible merchant): $9K fee, 9% holdback on $1.2M annual Stripe GMV = $108K repaid over 12 months ≈ 16% effective APR. Generalist MCA: $100K at factor 1.38 = $138K total, 9-month payback ≈ 80% APR. Same merchant, same need, $29K of incremental cost goes to MCA broker + funder spread.
Hidden cost differences. Stripe Capital: no origination fee, no ACH fee, no broker commission, prepayment is at fixed-fee (no discount but no penalty). MCA: 2-5% origination, $50-$150 ACH per pull, 4-19% broker commission embedded in factor, prepayment typically full factor regardless of payoff speed (some funders offer partial discount). Stripe's all-in cost is the headline fee; MCA's all-in cost is factor + fees + broker markup.
Optionality differences. Stripe Capital: single offer, take-it-or-leave-it terms based on Stripe's underwriting model. No negotiation. Renewals based on continued processing performance. MCA: multiple competing offers via broker shop, negotiation room on factor (typically 0.02-0.05), choice of term length, choice of holdback structure (daily ACH vs lockbox vs split-funding). MCA is shoppable; Stripe is monopolistic for Stripe merchants.
When to choose Stripe Capital. Stripe is 80%+ of your revenue, advance need under $500K, you've been pre-approved (offer visible in Stripe Dashboard), timeline 7-14 days acceptable, want lowest cost. Sign immediately — no MCA on earth beats 12-25% APR for an SMB.
When MCA beats Stripe Capital. (1) Not invited by Stripe (no offer in Dashboard) — Stripe Capital is not application-available. (2) Stripe is minority of revenue (<40%) — holdback math doesn't work. (3) Need over $500K. (4) Need funding in 24h. (5) Multi-processor business (Stripe + Square + Toast + in-person card swipe) — MCA pulls from bank deposits regardless of channel. (6) Want negotiation/shopping leverage.
Bottom line. For eligible Stripe-dominant merchants, Stripe Capital is dramatically cheaper than MCA — 3-5x cost difference is standard. Treat any Stripe Capital offer in your dashboard as the default choice unless amount or speed forces MCA. For merchants Stripe doesn't pre-approve, MCA remains the best option for fast working capital — but the cost premium is real, so renew quarterly to test Stripe's underwriting and convert to Capital the moment an offer appears.
Related questions
- Is Stripe Capital legit?
- Stripe Capital requirements 2026
- MCA vs Shopify Capital detailed economics
- Factor rate vs interest rate explained
Methodology. Fundnode is an independent funding-platform that scores merchants against our 100-funder database. We earn referral fees from funders when merchants apply via Fundnode. Editorial rankings and answers are independent of fee structure. Updated 2026-06-25.