Cardiff vs Capchase:
Small Business Financing Comparison

Cardiff provides a wide variety of small business financing products. Its financing options include merchant cash advances for quick working capital, revolving business lines of credit, equipment loans and leases for acquiring business equipment, and even business credit cards with introductory 0% APR offers. With this broad menu, Cardiff can likely support any financing need, from short term cash flow patches to major expansion loans.

While a credit score of 550 or above is ideal, Cardiff does not have a strict minimum credit score. They look at revenue trends, industry, time in business, and banking history, and will consider businesses with subprime credit if the revenue and overall business health are strong. Generally, having at least a year in business and about $20K in monthly revenue will improve your chances for larger loans and give you access to a wider range of loan products. For equipment financing, Cardiff might even approve newer businesses with at least six months operating history.²

It depends on the product. There’s no need for collateral on most short term financing, but for secured loans (like some equipment financing or larger term loans), the equipment itself or other assets serve as collateral. In all cases, Cardiff clearly outlines requirements.

Cardiff’s rates vary by product type and the strength of your business. For example, a secured loan might have rates starting around 5.99% for highly qualified borrowers.¹ Short term advances like MCAs use a factor rate. So, you might repay 1.1 to 1.2 times the amount you borrow over a year.² Business lines of credit use a simple interest rate starting around 9.9%. Cardiff’s credit cards have 0% intro APR for 12 months, then a competitive ongoing rate thereafter.⁵ Cardiff’s costs can start very low on equipment or secured loans, and all rates are clearly disclosed upfront.

Yes. Cardiff can connect businesses with SBA lenders to secure SBA 7(a), 504, and Microloan products. When you apply through Cardiff, they act as a facilitator, packaging your application and matching you to a suitable SBA lending partner. Through Cardiff, you can access the low rates and long terms of an SBA loan. Keep in mind, SBA loans still have stricter requirements and take longer than Cardiff’s own direct loans, but Cardiff significantly streamlines it, so you get a quick answer on SBA options and help all the way to closing.

Cardiff serves small or mid-sized businesses across a wide range of industries. They specifically highlight industries like trucking, dental practices, restaurants, contracting and construction, masonry, excavation, plumbing, auto repair, landscaping, and more. But Cardiff also works with retail stores, wholesalers, professional services, healthcare businesses, manufacturers, etc.¹⁷

Since they offer various products, they can accommodate both blue-collar industries needing equipment and working capital, as well as service or retail businesses needing seasonal cash flow support. The diversity of Cardiff’s portfolio is one of its strengths. They are comfortable funding businesses from Main Street to industrial parks.

No. Capchase does not offer SBA loans, nor are they able to facilitate government-backed loans for their customers. Its entire model is private, revenue-based financing for recurring-revenue companies. If your business wants the low interest rates and long terms of an SBA loan, you’ll have to go through a lender or bank that facilitates those programs.

Primarily, yes. Capchase serves companies with recurring revenue streams, typically SaaS (Software-as-a-Service) businesses, subscription services, or other tech companies with predictable monthly or annual contracts. They can fund e-commerce and other recurring-revenue models. However, the business must have a subscription or long-term contract revenue that Capchase can lend against.¹¹

If your business is a one-time sales model, like a retail store or a restaurant, or project-based income, Capchase’s model won’t work for you. They explicitly require a subscription revenue model (often measured in monthly recurring revenue, or MRR). It’s not for typical brick-and-mortar businesses.

To qualify for Capchase, your company needs to meet a few key benchmarks. You should:

• Generate at least $10,000 per month in recurring revenue
• Have three or more months of operating history (in practice, many Capchase clients have much higher revenue, but ~$100K ARR is a floor)
• Show metrics like stable or growing revenue, reasonable customer retention (low churn), and a healthy gross margin.
• Be incorporated (C-Corp/LLC)
• Have a business bank account
• Present the proper financial records. Capchase will want to connect to your accounting software or bank to evaluate performance.¹¹

Note that Capchase’s model assumes you’re okay with sharing your financials regularly (it’s a data-driven platform). There’s no specific personal credit score requirement since they don’t do personal guarantees. Getting approved is all about the business’s numbers. If you have solid recurring revenue for at least half a year, you likely meet Capchase’s minimum qualifications.

If you take a revenue-based advance (through Capchase Grow), you’ll repay it by remitting a percentage of your monthly revenue to Capchase until you repay it fully.¹¹ For example, Capchase might advance you $500K, and you agree to pay 6% of your monthly revenue until, say, $550K is repaid. If revenue slows, those 6% cuts are smaller. If revenue grows, you pay it off faster. Payments scale with your business.

Importantly, all repayment comes from business revenues or cash flows, and there’s no personal liability beyond the business assets.

Capchase’s model is built to handle some revenue volatility, but there are limits. If you have a revenue-based advance, your payments automatically adjust downward if your revenue drops, since they are a percentage of revenue. In slower months, you pay less, easing the strain on your cash flow (though it will take longer to fully repay the advance).

If the drop is significant or prolonged, Capchase might pause extending additional funds until your metrics improve. They continuously monitor your financial health. Because there’s no personal guarantee, a downturn doesn’t put your personal assets at risk. Ultimately, they want the business to recover so they can get repaid.

Yes. Capchase does not put strict restrictions on how you use the funds they provide. Once you receive the capital, you can use it for any operational or growth needs. Common uses include ramping up marketing, hiring staff, launching new projects, or bridging cash flow while you wait on customer payments.¹⁶ Many Capchase clients use the funding to accelerate growth, such as investing in customer acquisition, knowing future revenues will pay it back.

The key is that Capchase expects you to use the money to grow your revenue since repayment comes from revenue. But there’s no line-by-line auditing of use. As long as you’re putting the money into the business, it’s your call.

Yes, in certain countries. Capchase started in the U.S. but serves tech companies internationally in multiple markets. Currently, Capchase is available to businesses in the UK, Sweden, Finland, Spain, Belgium, the Netherlands, and Ireland.¹¹ If you run a qualifying recurring-revenue business in those markets, you can apply to Capchase. If you’re outside of Capchase’s active regions or your company isn’t incorporated in a supported country, you wouldn’t be able to use Capchase. Always check Capchase’s latest regional availability if you operate internationally.

Both companies earn revenue through the fees and interest paid on the financing they provide, but the structures differ.

Cardiff charges interest in the case of equipment loans, business lines of credit, term loans, and business credit cards. MCAs use a factor rate. They also might earn interchange fees from the Cardiff credit card usage, but they don’t charge customers hidden fees, including annual fees, draw fees, or maintenance fees.¹

Capchase generates its primary revenue from the fees it charges for each financing product. For example, if Capchase advances $500K, and you’re contracted to repay $550K via revenue share, that $50K is Capchase’s gross income (again minus their cost of capital).

It really depends on your business model and needs. For most traditional small businesses, Cardiff will be better because it offers many types of financing that fit your needs (quick working capital, equipment loans, lines of credit, SBA loans, etc.) and can approve you quickly based on your revenue and business history. Cardiff is also ideal if you value having a long-term partner with multiple funding options as you grow.

For a high-growth SaaS or tech startup, Capchase could be very attractive if you meet their criteria. Capchase will let you access a lot of capital without giving up equity. And repayments will flex with your revenue, which can be a lifesaver in the volatile early years of a startup.

However, even tech companies might use Cardiff for something like an equipment purchase or a term loan if they qualify and want the lowest interest rate.