Working Capital
Editorial Team
At Working Capital, we believe access to funding should be simple, transparent, and designed around your business not the other way around. We’re committed to helping entrepreneurs make smart financial decisions with tools, guidance, and lending partners they can trust.
Small business lending has never had more options, or more noise. From fintech startups to traditional banks, the sheer number of players promising fast cash and flexible terms can make it tough to know where to turn. That’s why we recommend a detailed look at the leaders in the space. Cardiff and Arc are both strong contenders, each offering unique advantages for growing businesses.
Cardiff is a top small business lender with a broad product mix (from merchant cash advances to SBA loans) and a 20+ year track record, funding over $8–10 billion to U.S. businesses.1
Arc, by contrast, is a newer fintech platform tailored to venture-backed startups (particularly SaaS companies), offering non-dilutive funding against recurring revenue and integrated banking tools.
Which is best for your needs? That depends. In this guide we’ll compare them across product depth, speed, eligibility, and cost, so you can make an informed choice.
Three–24-month terms for working capital (avg. 39 months); two to five years for equipment financing; 10+ years for SBA loans. Options for daily, weekly, monthly payments.1
Factor rates used for working capital loans (starting at 1.1), term and equipment loans start around 5.99% interest, SBA loan rates around Prime + small margin. Cardiff offers transparent pricing with minimal fees.1
Arc Advance structures costs are a transparent, upfront premium based on your revenue forecasts.3 Arc Cards are accessible through Arc’s broader banking services.
Offers a full lineup of financing options, including term loans, merchant cash advance, business lines of credit, equipment financing/leasing, and SBA loans.1
Provides revenue-based financing via Arc Advance and Arc Advance Plus, and a charge card, the Arc Card, with a business account.2
Funding amounts through Cardiff range from $5,000 up to $500,000 for working capital and term loans; equipment financing can be up to $250,000 or higher, SBA loans may go up to $5 million.1
Fast digital applications approved in around five minutes with funding same day for many products.1 SBA loans take longer due to paperwork requirements.
Online applications take minutes to complete. Offers delivered typically within 48 hours with funding same day with Arc account.4
Three–24-month terms for working capital (avg. 39 months); two to five years for equipment financing; 10+ years for SBA loans. Options for daily, weekly, monthly payments.1
Financing terms can vary but repayment typically expected over six–18 months via auto-debited payments.3
Factor rates used for working capital loans (starting at 1.1), term and equipment loans start around 5.99% interest, SBA loan rates around Prime + small margin. Cardiff offers transparent pricing with minimal fees.1
Arc Advance structures costs are a transparent, upfront premium based on your revenue forecasts.3 Arc Cards are accessible through Arc’s broader banking services.
Businesses generally need six to 12 months in business, $20K+ monthly revenue, FICO 500+ for MCA funding.5 Requirements may vary by loan product.
Must be a U.S. entity with a U.S. bank account, showing strong monthly revenue, typically $10K+ for six months or more for revenue-based funding.3
Cardiff’s standard Business Card and a Business Rewards Card offer a 0% introductory APR for 12 months on purchases and balance transfers. These cards come with no annual fee and benefits like travel rewards and tools to manage expenses. Business owners with a Business Rewards Card earn cash-back or points on spending. Cardiff cards also allow entrepreneurs to separate business expenses from personal, helping build business credit history.6
Overall, Cardiff’s business credit cards for small businesses are ideal for businesses that can take advantage of a year of 0% interest to manage cash flow or make purchases and then either pay off or refinance later. Credit lines are flexible and can be fairly high, giving companies a generous spending limit to cover operational expenses. Standard credit approval criteria apply (good personal credit is usually needed).
The Arc Card is a corporate debit card integrated into Arc’s startup finance platform. It is ideal for fast-growing companies, as it has no preset spending limit in the traditional sense. Instead, your limit scales based on your company’s cash balance and revenues.7
You won’t pay interest on carried balances because you can’t carry over a balance. However, that also means you do not get an advance on funds.
The card offers a simple rewards program with cash back on purchases. It also provides tech-centric benefits like seamless expense tracking, 24/7 account management, and the ability to manage cards for your team with controls and visibility via Arc’s platform.8
To qualify for the Arc Card, you must be an Arc customer with a business account, as the card is tied to your Arc financial profile. There are no annual fees mentioned for the basic card, and Arc touts that “best-in-class comes standard” with features like unparalleled control over spending limits and real-time analytics.
Cardiff clearly has the edge in business credit cards for the majority of small businesses. Cardiff’s credit cards come with a lengthy 0% APR intro period and don’t require you to overhaul your banking relationship. Any eligible business owner can apply and take advantage of the rewards and financing flexibility.
Arc’s card is only available to those using Arc’s platform and doesn’t offer the benefit of carrying a balance beyond the statement period. For a typical small business seeking the best credit card for business with a straightforward credit line and the ability to float expenses, Cardiff’s cards are the more practical and accessible choice. High-growth startups already on Arc may find the Arc Card useful, but it doesn’t outweigh Cardiff’s broad availability and no-interest intro financing for most businesses.
Cardiff’s merchant cash advance (MCA) for small business solves everyday cash flow gaps like covering payroll, buying inventory, or handling an emergency expense. The company advances a lump sum to the business, and the business repays through either a percentage of daily sales or fixed micro-payments (daily/weekly/monthly).
Cardiff can offer terms as short as three months to minimize cost, or up to 18–24 months for larger needs, giving borrowers flexibility in how quickly to repay. Instead of a traditional interest rate, Cardiff uses a factor rate, which can be as low as 1.1 to determine the fixed total repayment. These advances do not require specific collateral and are available to a wide range of industries (restaurants, retail shops, contractors, etc.), as long as the business has strong enough revenue to support the advance. Cardiff typically looks at recent bank statements or card sales to qualify the amount.8
Owners with at least six months in business applying for these fast approval MCA business loans often receive approval within hours and same day funding. And since Cardiff bases financing more on revenue flows (at least $20k per month) than on collateral or perfect credit, its MCA can be a good option for businesses with less-than-perfect credit or those turned away by banks.8 Term flexibility makes Cardiff’s MCA a fast working capital loan solution when you need quick access to cash and the ability to pay it back gradually out of revenue.
Arc’s core financing product is Arc Advance, which is a form of revenue-based financing tailored to startups with regular recurring revenue, such as SaaS companies. With Arc Advance, a startup can convert future recurring revenue into upfront capital without dilution.
Arc evaluates the company’s MRR, growth, and churn metrics via connected billing and banking accounts and offers an advance typically ranging from a few months’ worth of revenue up to as much as 30–40% of annual run-rate. Startups commonly receive anywhere from $25k to $2M on their first Arc Advance, and potentially up to $5M for subsequent rounds as trust builds. The funding is fast, and companies can onboard and get a term sheet in minutes and see funds within 48 hours of approval.3
Repayment is usually through automatic monthly ACH debits from a linked business account. Repayments may be either fixed installments or a percentage of monthly revenue. Because Arc Advance is not labeled as a loan, there’s no interest rate or APR. Instead, Arc charges a flat fee or discount.3 This means you know the cost upfront.
Arc also does not require personal guarantees or collateral. However, to qualify, your startup needs to meet strict criteria: typically $10k+ MRR, at least six months of revenue history, and sufficient cash runway to comfortably repay.3
Compared to a traditional merchant cash advance, Arc’s version is more founder-friendly but also limited to companies with steady subscription revenue.
The best MCA loan provider depends on your business model, and this is where Cardiff and Arc diverge sharply. If your business needs a quick infusion of working capital against your sales, Cardiff’s MCA is accessible, fast, and time-tested. It works for many industries and has flexible repayment options (daily, weekly, or monthly draws).
Arc’s advance is only an option if you are a SaaS or subscription business with solid MRR. In that niche case, Arc’s product is very appealing due the fact that there is no personal guarantee requirement and potentially lower cost capital. For a qualifying SaaS startup, Arc might be a good option.
In a broad comparison, Cardiff stands out as a top lender for working capital financing because it will fund businesses that Arc simply won’t consider, and Cardiff can tailor the advance term and payment frequency to the business. Arc is a specialized tool for a specific scenario, whereas Cardiff’s revenue-based financing can help all kinds of businesses solve cash flow problems.
A line of credit (LOC) through Cardiff functions as a revolving credit facility. Your business can draw funds as needed up to a pre-approved limit, only paying interest (or fees) on the amount you use. This product is ideal for covering sudden expenses or smoothing fluctuations in cash flow because you don’t have to take all the money at once. You can borrow, repay, and borrow again.
The application for Cardiff’s lines of credit is relatively quick (short form and financial checks). Once approved and set up, you can request draws online and receive funds quickly (sometimes the same day).10 The line’s flexibility means you have a safety net of cash always available. Cardiff’s LOCs often have monthly interest payments with principal due at renewal or on a schedule, depending on the structure. There may be a small origination or maintenance fee, but Cardiff prides itself on straightforward terms.
To qualify with this business line of credit lender, a business usually should have a stable revenue track record, 12 months of operating history, and a FICO score of 550 or higher (since a line of credit is unsecured and open-ended).10 Many businesses appreciate that it’s a “use it when you need it” solution with no maintenance or draw fees. If an opportunity or emergency arises, you can tap your line rather than applying for a new loan each time. Cardiff’s line of credit is one of the more versatile tools in Cardiff’s financing arsenal.
Arc does not offer a traditional business line of credit. The Arc platform’s financing is centered on the Arc Advance, which is a lump-sum financing arrangement, not a revolving line. Once you take an Arc Advance, you receive a set amount of capital and then repay it over time. If you need more capital later, you would need to apply for a new or additional advance (subject to your updated metrics). There is no mechanism to draw, repay, and draw again on a continuous basis in real time.
That said, Arc’s model does allow for repeat advances fairly quickly, and Arc customers can take additional tranches of funding as their ARR grows or as they pay off previous advances, effectively using Arc in a serial fashion similar to how one might use a credit line. But it’s not the same as having an open credit facility you can tap at will.
Arc’s omission of a revolving LOC may be due to its focus on predictability and underwriting each advance against revenue.
Cardiff easily wins the title of best line of credit for businesses by default, as it provides a true business line of credit, while Arc does not. For small businesses that value ongoing access to funds and maximum flexibility in borrowing, Cardiff’s line of credit is a clear advantage. You can draw exactly the amount you need, whenever needed, which is something Arc’s one-off advance structure can’t match.
The lack of a revolving credit option means Arc customers might have to repeatedly apply for new advances or seek external credit lines for day-to-day liquidity needs. Cardiff’s line of credit stands out as the better solution for managing unpredictable expenses and seasonal fluctuations, giving businesses control and peace of mind. When comparing these leaders side by side, Cardiff is the only one of the two that actually offers a line of credit, making it the winner for any business that wants that flexibility.
Cardiff Capital specializes in leasing and financing for business equipment, which is a cornerstone product for many asset-heavy small businesses. Through Cardiff, a business can finance the purchase of nearly any type of equipment, whether it’s heavy machinery, vehicles, medical/dental equipment, or technology, without paying the full cost up front. Cardiff can often cover 100% of the equipment cost, including related “soft costs” like installation, delivery, or training, which many lenders won’t finance.11
Small business equipment loan terms typically include fixed monthly payments over two to five years. This structure allows the business to repay the loan as the equipment generates income. Payments may ramp up as equipment becomes profitable or align with seasonal revenue fluctuations. Cardiff offers both traditional equipment loans and equipment leasing options (with the option to purchase the equipment at the end of the lease). They advertise quick approvals and funding, enabling businesses to seize discounts on equipment purchases or replace critical gear rapidly.11
Often, the equipment being financed serves as collateral, so Cardiff can even approve businesses with moderate credit as long as the equipment is essential and holds value. Down payments can be minimal depending on credit strength.11 Cardiff’s dedicated programs for trucking, construction, medical practices, and other industries mean they understand the equipment’s role in your business.
Cardiff’s equipment loans for small business is about preserving your working capital. You get the equipment now, keep your cash for other needs, and pay for the asset over time as it helps your business earn revenue.
Arc’s platform currently doesn’t have any product analogous to an equipment lease or loan. The company’s financing model is not asset-based; it’s revenue-based and oriented toward companies that typically are not very asset-intensive.
If a startup using Arc wanted to purchase equipment or hardware, they would likely have to use the general Arc Advance funds for that purpose, since Arc doesn’t offer a specific loan for equipment purchases.
Using Arc Advance for equipment has limitations. Arc doesn’t offer a multi-year term, so you would need to repay the advance in 18 months or less, a much shorter time period than the useful life of the equipment. This repayment schedule could strain cash flow compared to a typical three to five year equipment loan.
Moreover, because Arc determines the max advance amount based on recurring revenue, not the value of the equipment, you may not qualify for the full funding needed to purchase equipment without high recurring revenue.
When it comes to the leading equipment financing company, Cardiff rises to the top with a dedicated product to finance or lease equipment with terms aligned to the asset’s life. Cardiff also has deep experience in this arena. From loans for trucking companies to equipment financing for doctors, they’ve done it all.
Arc, on the other hand, simply doesn’t play in this space. Its Arc Advance is not set up to help you finance large asset purchases over multiple years. For a business owner who needs to buy or upgrade equipment without draining cash, Cardiff’s solution is far superior. You’ll get a structured plan with potentially low interest rates and the ability to include related costs. Cardiff’s equipment financing offers flexibility and tailored terms that Arc cannot match, making Cardiff the go-to choice for financing business assets.
Cardiff’s approach to business term loans is very flexible in structure. They work with the borrower to choose the loan amount, term length, and payment frequency that make sense. Loan amounts generally go up to a few hundred thousand dollars unsecured, and higher with some pledged collateral.9
Cardiff emphasizes competitive pricing. Interest rates on Cardiff’s term loans will depend on the business’s credit profile and cash flow but can start at 5.99%. Rates can be higher for some borrowers that banks consider too risky. Borrowers can save money with Cardiff’s no prepayment penalties.
The big advantage Cardiff brings is speed and simplicity. Even for a long-term business loan, Cardiff can often approve within a day or two and fund immediately, whereas banks might take weeks. The documentation required is also lighter, and it often consists of basic financials and bank statements accessed through Plaid.12
Business owners can use Cardiff’s short-term business loans for any business purpose, from expansion to marketing to bridging a gap while waiting for accounts receivable. Cardiff can custom-tailor a business loan solution outside the rigid bank formulas, giving you the capital with a repayment term that you can handle, all on a fast timeline.1
Arc doesn’t issue loans with multi-year terms, nor does it facilitate standard principal-and-interest installment loans. Its only direct funding product, Arc Advance, is structured as a purchase of future revenue repaid over a short term. If a company wants a longer-term loan without giving up equity, Arc would not fulfill that need directly.
In the context of “business loans,” the closest Arc comes is connecting companies with third-party lenders via its new Arc marketplace, which is essentially a referral to venture debt or other financing options. But that means the financing would actually come from an external lender, not Arc itself. Thus, Arc’s platform might assist in sourcing a loan, but it does not provide one beyond the short-term advances.
When it comes to general business loans and term financing, Cardiff holds a decisive edge that puts it among the top business term loan providers. Cardiff can underwrite short-term and multi-year loans tailored to a business’s needs, giving entrepreneurs a financing tool that matches their project timelines and cash flow capabilities.
Arc’s one-size short-term advance is not a substitute for a true business loan in many cases.
Bottom line: Cardiff is the stronger choice for the best term loans for businesses because it offers both the breadth (from quick bridge loans to sizable long-term loans) and the customization to suit different situations. If you need a straightforward loan with a defined term and possibly a lower rate, Cardiff is the provider equipped to deliver that.
SBA loans are government-backed loans offering some of the best terms on the market. As an SBA facilitator, Cardiff connects businesses to SBA-approved lending programs (like the popular SBA 7(a) loan and 504 loans) and streamlines what can otherwise be a daunting process.
Cardiff advertises loans up to $500K in financing with an SBA loan. However, they can facilitate loans up to $5 million. Repayment terms are typically long (10 years for working capital or even 25 years for real estate under 504). Interest rates on these small business capital loans are very low, starting around Prime + a small percentage. Cardiff emphasizes quick pre-approvals even for SBA products.13
While it’s true that SBA loans normally involve more paperwork and stricter qualifications (solid credit, proof of profitability, or a viable business plan, etc.), Cardiff’s team guides applicants through the requirements. In fact, Cardiff often positions its other fast small business lending products as a bridge while waiting for an SBA loan, since SBA processes can still take weeks or more.
To qualify for an SBA loan via Cardiff, a business needs to meet basic SBA eligibility. Cardiff matches the business to the right type of SBA program and packages the application to improve chances of approval. The key benefits of going through Cardiff are guidance and potentially a bit of speed.
Ultimately, the advantage is access to low-cost, long-term capital that Cardiff offers in addition to its own funds. Cardiff’s SBA loan offering is about giving businesses the “best of both worlds”: the favorable terms of a government-backed loan and the support and faster turnaround on online small business loans of a fintech lender.
Arc’s model is private funding focused on rapid growth needs, and it isn’t a registered SBA lender nor a facilitator for such programs. If a business owner on Arc’s platform decided they wanted the ultra-low rates of an SBA 7(a) loan, they would have to approach another lender for that product. Arc has no offering that competes with SBA’s combination of low interest and long term. It’s a gap that Arc likely knowingly leaves, as they focus on faster, shorter financing.
Between the two, Cardiff is the best lender for small business loans by default and by advantage. It actively provides access to SBA funding, whereas Arc offers none. The SBA option can be a game-changing opportunity for small businesses because these loans have the lowest rates and longest terms, which can dramatically reduce monthly payments and total cost. Cardiff’s ability to facilitate SBA loans (on top of its own products) showcases its commitment to finding the right financing for a business, not just the fastest or easiest.
If you can qualify for an SBA loan, Cardiff will help you get it, and you’ll pay a fraction of the cost of most financing. Arc simply doesn’t play in this arena. Therefore, for any business eligible for SBA financing, Cardiff is the go-to choice between these two companies. Even for those not yet eligible, Cardiff can offer interim solutions and a path toward SBA in the future.
Both Cardiff and Arc bring smart financing solutions to the table. The right choice depends on your business’s profile and priorities.
Arc has carved out a strong niche for venture-backed startups, particularly SaaS companies, that need fast, non-dilutive cash to fuel growth. If you run a tech startup with steady recurring revenue and want to extend your runway without giving up equity, Arc’s streamlined revenue-based funding and integrated banking tools can be highly effective.
Arc’s platform shines for its automation and founder-friendly terms (no equity, no personal guarantees), and it’s a fitting option for companies that meet its selective criteria.
That said, Cardiff’s broader product mix, flexibility, and experience make it a more versatile financing partner offering loans for small business owners. Cardiff can serve a far wider range of companies with solutions tailored to their needs. Whether you need a small advance tomorrow to cover payroll, a $300K line of credit for ongoing working capital, or a multi-million dollar SBA loan to buy a growing competitor, Cardiff can handle it.
The funding is fast (often same day), and they can customize the terms, and the team specializes in many industries. Cardiff’s ability to offer many financing options under one roof means you’re not confined to a one-size-fits-all approach.
Arc is a great option if you squarely fit their startup mold, but Cardiff’s comprehensive offerings and willingness to work with businesses of all stripes give it the edge as an overall financing solution.
In our comparison, Cardiff emerges as the more accessible and well-rounded provider, capable of supporting your business through various stages of growth. We think most small business owners who value clear options, quick answers, and the freedom to grow on their own terms will find Cardiff to be the preferable partner in the long run.
No. Arc’s funding model focuses on short-term advances against future revenue. Their advances typically feature short repayment terms. Businesses needing the low interest and long terms of an SBA loan choose a lender that can facilitate SBA applications.
Extremely fast in most cases. Cardiff advertises approvals in as little as five minutes and funding the same day for its core products. SBA loans, which involve the government, take longer, but Cardiff’s in-house lending process makes application, approval, and funding fast.
Cardiff doesn’t specify a strict minimum credit score for all its loan products. They even note “no minimum Credit Score” for some approvals, though generally a personal credit score of at least is recommended. If your credit is below bank standards, Cardiff will focus on your business’s cash flow and may still provide financing.
Arc bases your funding limit primarily on your Annual Recurring Revenue (ARR). New Arc customers can typically get an advance of about 20%–50% of their ARR. Repeat customers who demonstrate good repayment may see that percentage rise to as high as ~70% of their ARR. The absolute maximum Arc Advance at this time is around $5 million, and only for companies with very large recurring revenues.3
Cardiff often requires personal guarantees on business lines of credit and working capital loans and advances, as is standard in small business finance. This means the owners pledge to repay from their personal assets if the business can’t.
Collateral requirements depend on the product. Equipment loans use the equipment as collateral, and SBA loans often require liens on business assets (and possibly real estate collateral).
For unsecured products like MCAs or lines of credit, Cardiff may not require specific collateral. However, Cardiff does not usually require you to put up personal property as collateral (except perhaps on some larger SBA loans).
The Arc Card is a corporate card that provides cash back on purchases and has limits that grow with your company’s finances.7 The card is closely tied to Arc’s digital banking, and you need to be an Arc customer and use Arc’s account for your funds to get a card. With an account, you can manage everything through Arc’s dashboard and have payments auto-debited from your Arc account. There’s no annual fee and no interest since you cannot carry over balances
Cardiff’s MCA and working capital loans use factor rates rather than interest rates, giving borrowers a predictable payback amount. However, loan costs can vary based on your credit and term length. Cardiff can sometimes offer lower rates for better-qualified borrowers or longer terms.
Arc charges a discount on future revenue, which is effectively also a fixed fee. If your business qualifies for Arc, you might find Arc’s implied cost can be competitive or even lower than some MCA rates. Plus, Arc has no other fees or interest.
Always compare the total payback amount in dollars to see which is a better deal for your situation.
Arc’s lending model is built around analyzing MRR/ARR. If you’re a project-based or product-based business (e.g., an e-commerce, manufacturing, or service company without subscriptions), you may not fit Arc’s criteria. In that case, you should look to lenders that fund all types of businesses, including retail, restaurants, contractors, etc., using more traditional revenue and credit analysis.
No. A key advantage of Arc is that it’s non-dilutive financing. You do not give up any ownership stake, and Arc does not take warrants either. Arc’s contract is purely about repaying the loan from revenue. This allows founders to keep full equity control.
Cardiff typically doesn’t charge application fees, and there are no prepayment penalties on many of its loans. You typically only owe the amount borrowed plus funding cost based on an interest or factor rate. For the SBA loans Cardiff facilitates, standard SBA guarantee fees and closing costs apply (which is normal for all SBA lenders). Always review Cardiff’s loan agreement. They advertise transparency in lending and disclose all fees up front.
Arc will propose a repayment schedule based on your revenue profile. In many cases, it’s a fixed monthly payment over six or 12 months. Alternatively, Arc may structure it as a percentage of monthly revenue, meaning if your revenue dips one month, you pay back less, and if it rises, you pay back more. This variable approach is closer to a true revenue share and can provide flexibility if your income is not steady.
Arc’s goal is to have you fully repaid, typically within 18 months. They pull payments automatically from your account and will discuss the structure with you when you take the advance. The total amount you owe is fixed upfront, but how you slice it monthly can vary.
Yes. Cardiff frequently extends additional financing to returning customers. In fact, 84% of Cardiff customers receive additional funds within six months of their initial loan.1 If you establish a good repayment history, Cardiff can increase your credit line or offer a larger second loan at better terms.
Whether you started with a small advance or a modest equipment loan, as your business grows or your needs continue, Cardiff can top up your funding or refinance you into a larger program (including transitioning to longer-term products like an SBA loan when you qualify). Cardiff can scale with you. Just communicate your needs to your Cardiff rep, and they will work to find an option (subject to underwriting, of course).
1https://cardiff.co
2https://joinarc.com
3https://www.joinarc.com/guides/revenue-based-financing
4https://www.joinarc.com/working-capital
5https://cardiff.co/business-loans/products/merchant-cash-advance/
6https://cardiff.co/business-loans/products/business-cards/
7https://www.joinarc.com/encyclopedia
8https://www.joinarc.com/business-account
9https://cardiff.co/business-loans/products/merchant-cash-advance/
10https://cardiff.co/business-loans/products/line-of-credit/
11https://cardiff.co/business-loans/products/equipment-leasing/
12https://cardiff.co/business-loans/
13https://cardiff.co/business-loans/products/sba-loans/
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