[funding pro]

@jsl23 because i think that every time a small business owner borrows money or "advances" money which to them is basically the same thing - they should understand the true cost so they can make an intelligent decision about whether or not they're making the best possible decision for their business and livelihood

But you continue to omit other factors such as collateral and personal guarantees and docs and all the other factors that differentiate the two products. This is why myself and a few others keep reminding you that you are not comparing apples to apples. All things being equal, a merchant should probably take the longer payment option, but things are not equal and you are either not understanding that or intentionally ignoring it. Have you ever thought that a small business owner may not want to carry debt on their balance sheet for 3-5 years. Or maybe they dont want to put their home up to receive a loan. Or perhaps, if business slows down and they have to close their doors, they wouldn't want to have to file for personal bankruptcy?

It would be great to think that if they didnt want to carry the debt, they would simply take all the cash they were saving and use that to prepay as you mention, but if you know business owners as well as I do than the difference in monthly payment isn't going into their bank account to start accruing interest. It's out the door as quickly as it comes in.