<i>How am I able to compare this &quot;interest free&quot; loan with a small business line of credit from the bank?</i><p>If you&#x27;re able to get a small business line of credit from your bank, take that, it will invariably be superior.  Sadly, that product has virtually disappeared from the marketplace for small businesses with revenue less than ~$1 million.  The underwriting costs are too high, the product is too risky, and the revenue potential is too low.  The bank will, instead, steer you towards credit cards.  Credit cards are a wonderful product but they don&#x27;t substitute for the need.<p>There exist a bunch of alternative lenders who are eating this space up with pricey-products-which-actually-get-issued.  OnDeck gives fairly uncomplicated lines of credit, for example.  Their stock offer is 36%.  (I have one, and occasionally use it.)  Kabbage (love the name) does a merchant cash advance with implied APRs which are even higher.  There are more costly options still, including traditional hard-money lenders and merchant cash advance providers.<p>This offering is closest in character to Paypal Working Capital.