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.
Cardiff and Pipe both leverage technology to offer fast working capital options for small businesses. Both fintech platforms leverage real-time business information to streamline applications, expedite underwriting, and enable same-day funding.1,6
But that is where the similarities end. Cardiff positions itself as a top small-business lender by providing a broad suite of funding solutions for businesses across industries and growth stages.1 Pipe, on the other hand, fills a niche to help companies with recurring revenue avoid traditional loans by trading future income for upfront capital.7
This guide breaks down how Cardiff and Pipe compare across product depth, speed, eligibility, and cost. It looks at how Cardiff’s flexibility, speed, and product range stack up against Pipe’s innovative revenue-based financing so you can pick the fintech options that best fit their funding needs.
Embedded, revenue-based merchant cash advances (MCAs)2 and business charge cards.3
As low as $5k for MCAs4 and up to $500k for working capital loans and term loans.5 Equipment financing tops out around $250k.8
Charges a monthly percentage of sales until the advanced amount is repaid. No set term or monthly minimums.2 Requires payment in full 15 days after the billing cycle for the business card.3
Scores business health by looking at revenue quality, founder’s industry experience, and financial data.1 Typically approves businesses with 12 months in business, credit scores around 550, and $20K in monthly revenue.4 Does not require hard credit checks or collateral.9
Makes decisions based on historical transaction data, payment amounts, and revenue predictability. Does not require personal guarantees or credit checks,2 for either product.3
Interest rates start at 5.99% on secured loans.1 MCAs use factor rates starting at 1.1, without any origination or administration fees.4 No prepayment penalties on any product,9 no annual fees for business credit cards,10 and no maintenance or closure fees on business lines of credit.11
Uses a flat fee on MCAs based on each business’s financial health and advanced amount. Exact rates are undisclosed.6 No annual fees for business credit cards.3
Business term loans, equipment financing, merchant cash advances (MCAs), business invoice financing, working capital loans, revenue-based financing, business lines of credit, and business credit cards.1
Embedded, revenue-based merchant cash advances (MCAs)2 and business charge cards.3
As low as $5k for MCAs4 and up to $500k for working capital loans and term loans.5 Equipment financing tops out around $250k.8
Advances a portion of revenue based on the strength of past income and projected sales.6 Does not disclose a minimum or maximum amount.7
Simple online application with decisions in minutes and funding as soon as the same day.1
Seamless applications use data-sharing systems to access financial data and provide quick approvals.2 Funds approved businesses as soon as the same day.6
Offers various repayment schedules, including fixed and revenue-based payments made daily, weekly, or monthly.4 Terms range from three to 24 months for MCAs5 and up to seven years for equipment financing.8
Charges a monthly percentage of sales until the advanced amount is repaid. No set term or monthly minimums.2 Requires payment in full 15 days after the billing cycle for the business card.3
Scores business health by looking at revenue quality, founder’s industry experience, and financial data.1 Typically approves businesses with 12 months in business, credit scores around 550, and $20K in monthly revenue.4 Does not require hard credit checks or collateral.9
Makes decisions based on historical transaction data, payment amounts, and revenue predictability. Does not require personal guarantees or credit checks,2 for either product.3
Interest rates start at 5.99% on secured loans.1 MCAs use factor rates starting at 1.1, without any origination or administration fees.4 No prepayment penalties on any product,9 no annual fees for business credit cards,10 and no maintenance or closure fees on business lines of credit.11
Uses a flat fee on MCAs based on each business’s financial health and advanced amount. Exact rates are undisclosed.6 No annual fees for business credit cards.3
Cardiff offers business credit cards for small businesses, giving owners access to a revolving line of credit for everyday expenses. Because Cardiff focuses on real business performance, companies with one year in operations and credit scores as low as 550 may qualify when they have strong revenue.10
The Business and Business Reward Cardiff Cards include 0% APR for the first year, online business account management, 24/7 cardmember service, and no annual fee.10 Cardiff bills cardholders’ monthly interest rates after the introductory APR offer, and can tailor repayments to each business’s revenue cycle.10 The Business Rewards Card features a cash back rewards program and travel benefits.10
What makes Cardiff’s cards especially useful is the flexible cash advance feature.10 Because Cardiff is a business cash advance company, cardholders can withdraw a lump sum up to their available credit limit. They repay the advance along with a factor or interest rate as a portion of their future sales, like with an MCA.10
A Cardiff Card provides similar perks to many of the best business credit card offers, along with a useful cash advance option. Small business owners can separate their business spending, manage their cash flow, earn rewards, build credit, and secure working capital all through Cardiff’s business credit card.
Pipe offers a Business Card program as part of its embedded finance offerings. It acts as a charge card with a 45-day float period and cash back on qualified business expenses.3 Pipe provides clients with unlimited virtual and physical cards with custom spend controls for employee use. The card is as widely accepted as Visa cards.3
Pipe underwrites their business cards based on each applicant’s historical transaction data and payment amounts, using a data-sharing process. They do not require credit checks, personal guarantees, or annual fees.3 Even the credit limit is revenue-based, with cardholders securing access to 15-30% of their monthly recurring income through the Pipe Business Card.3
However, it is still a charge card. Businesses will need to repay purchases in full 15 days after the billing cycle. On that date, Pipe will automatically deduct the balance from your account, and, if that fails, lock your card and collect a percentage of your daily sales to cover the balance.3
As an embedded product, business owners can only access a Pipe Business Card via a platform that integrates with Pipe.3 Providers like vertical SaaS platforms or lending marketplaces might qualify.7 It’s not something owners can apply for on Pipe’s website.
Still, Pipe’s card offers attractive features for business owners who want to simplify employee spending or smooth out cash flow for routine expenses.
The best business credit card for you depends on whether your business wants a credit card or a charge card to manage company expenses.
Pipe offers a straightforward business charge card with no annual fees, personal guarantees, or credit checks required. It outperforms many traditional cards’ 30-day cycles with a 45-day repayment period and still offers percentage discounts on eligible purchases through its cash back program. For businesses with consistent revenue to qualify and access to a platform with an embedded Pipe card, those features are very compelling. However, the charge card payoff requirements may not work for businesses with longer or less predictable revenue cycles.
Cardiff offers the same advantages as the best small-business credit cards with no annual fee, 0% APR for the first year, travel benefits, online account management, and cash back rewards. Cardiff Cards also give owners access to working capital through the cash advance feature. Even businesses without subscription revenue or strong credit scores can often qualify for a Cardiff Card, since Cardiff considers overall business health in its application.
Cardiff’s Business and Business Rewards Card are both credit cards, rather than charge cards. Thus, cardholders can access a revolving line of credit for everyday purchases and either repay the balance within 30 days or pay interest on the amount that carries over. Cardiff reports card usage to credit bureaus, so using the card responsibly can improve a business’s credit score.
While Pipe offers advantages for qualifying businesses seeking a charge card, Cardiff stands out for its accessibility and flexibility. Small businesses can apply for Cardiff’s business card directly, adjust their repayments to their revenue cycles, and secure business cash advances as needed. For these reasons, the Capital Call gives Cardiff the best credit card for business expenses.
Cardiff’s merchant cash advance (MCA) provides a one-time cash infusion repaid as a percentage of future sales. When time is of the essence, Cardiff’s simple application process, extremely fast approvals, and same-day funding options make their merchant cash advance loans excellent options for addressing everyday cash flow needs.1
Cardiff uses an overall business health score to approve their MCAs, so companies with as little as six months in operation and a 550 credit score can qualify if they generate at least $20K and make at least three bank account deposits a month.4 Approved companies can then secure between $5K and $500K.
Businesses typically repay MCAs through a fixed percentage of their daily, weekly, or monthly card sales. Cardiff offers this revenue-based option, but stands out among merchant cash advance companies for also offering predictable, fixed MCA payments.4 For either option, Cardiff debits a connected bank account for automatic payments.
Businesses can secure MCA terms between three and 24 months, with no prepayment penalty. Cardiff actually incentivizes early payoff by forgiving any remaining fee.4 They use a flat fee for MCAs for transparency, so you know exactly how much you’ll need to repay from the beginning. Cardiff’s factor rates start at 1.1,4 which is competitive among merchant cash advances for small businesses.
Because approval is based on real-time business performance, Cardiff’s MCA is available to businesses across most industries.1 Current borrowers can also apply for renewal or additional business cash advance, and Cardiff can approve companies with strong repayment histories for additional funds.4 It’s a versatile tool, whether you’re smoothing out seasonal dips or grabbing a quick opportunity.
Pipe can also advance business owners capital against future revenue, but not in the same way Cardiff does. Essentially, Pipe allows companies to sell a portion of their recurring revenue. If your business bills customers monthly or uses regular subscriptions, Pipe will advance you cash now for expected future payments.2 They do not disclose a funding range, as each MCA’s amount depends on the business’s revenue.6
Pipe is a recurring-revenue trading platform, not a direct lender. Other fintech companies can embed Pipe’s products into their sites.7 Businesses will need to access this MCA through other providers.
Approval for Pipe’s MCA relies almost entirely on revenue, which they assess through a streamlined application and data-sharing process. They don’t require personal guarantees, credit checks, or collateral.2 But their revenue financing is only viable for businesses with predictable, recurring revenue streams, such as SaaS subscriptions or service contracts. Businesses without this sales model cannot qualify.
For those who do qualify, Pipe offers quick funding. Businesses can receive funds in a few hours, once they set up payments.6 Pipe automatically collects a share of your ongoing customer payments until the MCA amount is fully repaid.4 This aligns repayments to income, even if it fluctuates.
Pipe also does not set a term length, so there are no late penalties. Businesses pay a monthly percentage of their revenue until the advanced amount and the borrowing fee are paid off.6 Pipe doesn’t disclose a range for their flat fee.6
Between the two fintech platforms, Cardiff’s accessibility and versatility make it the top MCA lender.
Many types of small businesses with steady sales can qualify for a merchant cash advance from Cardiff. Pipe’s model, on the other hand, only works for companies with recurring revenue models. And as an embedded product rather than a lender, access to Pipe’s capital depends on third-party providers. For small businesses looking for an MCA direct lender, Cardiff is the more accessible choice.
Furthermore, Cardiff offers greater repayment flexibility. Businesses can choose between flexible and fixed payments made daily, weekly, or monthly. They can also extend their repayment terms up to two years if needed. As Pipe only offers monthly percentages of your recurring revenue for payment, Cardiff stands out for more versatile MCAs.
Overall, the best merchant cash advance company is Cardiff for being a broadly applicable, quick solution for immediate working capital, compared to Pipe’s niche revenue trading tool.
With a revolving line of credit from Cardiff, business owners can draw funds as needed up to their maximum credit limit. As they repay what they’ve borrowed, they replenish the available credit. Over time, Cardiff automatically adjusts the credit limit through their real-time business analysis. It also renews credit lines for owners that remain in good standing. This line of credit streamlines access to capital without reapplying as needs arise.11
Line of credit holders only pay interest on the funds they use, with Cardiff’s interest rates starting at 9.9%. This is the only borrowing cost for a Cardiff line of credit since they do not charge prepayment, maintenance, draw, or closure fees.11
Cardiff uses a streamlined application and underwriting process to evaluate businesses, making it quick to apply and receive a decision.1 Many small businesses that get turned down by banks can qualify since Cardiff only requires consistent monthly revenue, 550+ credit scores, and 12 months of operating history for a credit line.11 Once approved, business owners can withdraw and secure funds as fast as the same day.1
As a small-business line of credit provider, Cardiff offers options to help owners meet their unique financing needs. For example, companies looking for flexible repayment options can secure a merchant line of credit from Cardiff, where payments are based on a percentage of daily or weekly sales.11 And while Cardiff does not require collateral, businesses may choose to secure their line of credit to lower interest rates, increase credit limits, or lengthen repayment terms.11
Overall, Cardiff’s lenient criteria, competitive rates, and customizable options mean many small business owners can secure a business line of credit to buffer their cash reserves and fund their growth.
Pipe does not offer a business line of credit, but its Pipe Capital advance offers some of the flexibility of a line of credit through its multi-draw function.2 Approved companies receive a maximum amount of future revenue that they can trade for upfront cash. Within that limit, businesses can withdraw multiple sums before other advances are fully repaid.2 This mimics a revolving credit line as long as you have more revenue to trade.
Each advance acts as its own merchant cash advance. Pipe issues a flat fee for each withdrawal and automatically takes a separate portion of your monthly revenue as payment for each MCA.2 Pipe does not set term limits for repayment, though they tend to be short-lived.
A key difference between Pipe’s model and a business line of credit is the timing of when funds are available for withdrawal. Credit limits on a traditional line of credit typically last for six months to three years, whether or not owners withdraw funds. Pipe’s preapproval for revenue trades only lasts 30 days.2 Business owners have to move more quickly on funding opportunities when using Pipe Capital than with a regular line of credit.
Pipe uses a live data-sharing process to underwrite its advances, so it adjusts the advance amounts as your recurring revenue changes.6 This is comparable to a credit limit that increases as your business grows, but is based solely on revenue.
Pipe’s Capital provides a kind of flexible draw experience for businesses with recurring revenue. However, it’s slightly different from a classic credit line product.
For a universally useful product, the Capital Call gives Cardiff the best business line of credit compared to Pipe.
Pipe’s revenue-fueled advances do mimic some credit line behaviors for companies with subscriptions, but their innovative approach is only available to certain business models. Also, the shorter terms, limited draw time, and stacking fees limit Pipe’s use as an open-ended line of credit for rainy days or growth opportunities.
Cardiff’s revolving line of credit offers the typical business owner a funding tool that is useful in more situations. Compared to other business line of credit lenders, Cardiff’s product offers competitive rates, transparent terms, and fast funding. And they offer both fixed and flexible payment options with the benefit of longer draw periods and repayment terms.
Comparing Pipe and Cardiff specifically, Cardiff offers a real line of credit with broad eligibility, whereas Pipe offers a limited alternative, making Cardiff the best line of credit for business.
Cardiff provides leasing and loans for business equipment to help companies acquire costly equipment, machinery, or vehicles without paying the full price up front. The company stands out by financing both titled and non-titled equipment, making these solutions accessible to businesses across a wide range of industries.8
Using their online application, Cardiff offers quick underwriting decisions and fast funding (as soon as the same day). By offering financing with speed, Cardiff helps businesses secure the equipment they need when they need it.1 They use a business health score based on revenue quality and the owner’s industry experience, as well as financial data like time in business and credit scores, to approve commercial equipment financing.8 Startups and businesses with limited credit history can often qualify if they have strong experience or income.
Cardiff funds small business equipment loans up to $250K with terms between two and seven years to spread the purchase price into fixed, monthly payments that align more closely with the useful life of the asset.8 They also offer flexible repayment options, such as season-based payments, ramp-up structures that increase as the equipment generates revenue, and one-year payment deferrals, to meet the needs of small businesses.8
Borrowing costs for Cardiff’s equipment financing remain competitive, as these loans are self-collateralized (i.e., the financed assets serve as collateral). Cardiff’s interest rates start at 5.99% with no prepayment penalties.8
Cardiff stands out among equipment financing companies for their comprehensive solutions. They can roll in soft costs, such as installation or shipping, into the financing, covering the full cost of adding new equipment to a business.8 And as borrowers make payments, they automatically qualify for an equipment line of credit. This product allows businesses to purchase multiple assets over time and only pay interest on what they use.8
Pipe only offers Pipe Capital, a merchant cash advance with credit line flexibility, and a business charge card.7 They do not offer any dedicated equipment financing products.
Pipe Capital focuses on trading revenue contracts for cash with short-term, revenue-based repayments.2 It isn’t designed to finance a specific asset over the course of several years. And most equipment-heavy businesses, such as manufacturers, trucking companies, dentists, and contractors, don’t have the subscription revenue to qualify for Pipe’s products.7
Funding tangible assets is not part of Pipe’s model. Businesses with equipment needs will have to look to lenders like Cardiff, banks, or equipment vendors.
Between these two capital providers, Cardiff offers the best financing for business equipment since financing specific assets is completely outside Pipe’s model.
Cardiff offers a purpose-built product for buying or leasing equipment on favorable terms and extends equipment financing to doctors, restaurants, landscapers, and other niche industries that need titled or untitled assets. Many small businesses can quickly secure funds for necessary equipment through Cardiff’s approval process and same-day speed. Cardiff takes a comprehensive view of equipment financing so owners can roll in soft costs, adjust repayment schedules, and qualify for equipment lines of credit to cover all their needs.
If getting vehicles, machines, software, or furniture is on your agenda, Cardiff’s ability to finance that at reasonable rates and all-inclusive terms gives it the upper hand.
Cardiff partners with SBA-approved lenders to help small businesses secure financing through government-backed loans. Through Cardiff’s connections to approved lenders offering SBA 7(a), 504, and Microloan programs, owners can secure up to $5 million with terms of 10 years or longer.13 Combine the long terms with interest rates in the mid-single digits, and the monthly payments on these business loans for small businesses become very manageable.
However, applying (and qualifying) for these attractive SBA loans can be challenging and time-consuming. Even via Cardiff, a business typically needs a credit score of 600+, $20K in monthly revenue, more than two years in business, and demonstrated repayment ability.13 SBA loans also typically take several weeks from application to funding.
Cardiff helps simplify and speed up the process by guiding borrowers through their applications.13 They cannot guarantee fast approvals, but using Cardiff to apply for an SBA loan can help increase business owners’ chances of approval.
When owners cannot wait for government-backed funding, or don’t quite qualify, Cardiff offers fast, small-business lending as a bridge. Borrowers applying for SBA loans through Cardiff can qualify for their business lines of credit, revenue-based financing, short-term loans, MCAs, or invoice financing to access the working capital they need now.13
In this way, Cardiff offers the best of both worlds. Small business owners secure fast, easy loans when needed, as well as access to ultra-low-cost, long-term SBA loans when they qualify. Cardiff is a versatile funding partner that can scale with growing businesses.
Pipe only offers two products, and neither of these products are government-backed or long-term loans. Pipe’s model focuses on short-term, revenue-based advances2 and charge cards.3
If a small business needs the kind of capital only an SBA loan provides, Pipe cannot assist. Small business owners will need to turn to other lending partners.
For access to SBA financing, the title of best lender for small business loans goes to Cardiff by default.
Pipe offers valuable capital products for businesses with recurring revenue, but they focus on short-term funding. They don’t have anything to compare to long-term SBA loans or to government-backed lenders.
In contrast, Cardiff can arrange SBA loans for businesses with significant investments that need long-term, low-cost financing. They also bridge any immediate shortfalls through their range of short-term working capital loans. Cardiff plays a valuable role for businesses at different stages of growth and in different opportunities.
The Capital Call in this area clearly goes to Cardiff for extending their funding options to include government-backed loans for small business owners.
When businesses need capital for growth initiatives, Cardiff’s short and long term business loans offer flexible financing. These loans provide a lump sum of capital that can be used for any business expense and repaid over a fixed schedule. Because the repayment terms are often longer (averaging 39 months), a term loan from Cardiff is an excellent fit for larger investments that expect a slower return.1 This structure helps owners manage cash flow while investing in initiatives that take time to generate returns.
Cardiff’s term loans can be secured or unsecured, allowing businesses to balance interest rates and collateral requirements with their situation. Interest rates can be quite low on secured loans for qualified borrowers (as low as 5.99%). Term loans offer multi-year terms with a fixed repayment structure.1 These loans give businesses the ability to apply for the terms that best meet their needs.
Accessibility is a defining feature of Cardiff’s approach. Approval is not limited to borrowers with perfect credit. Instead, Cardiff places emphasis on revenue consistency, cash flow, and time in operation. Business term loan amounts can scale as the business grows, reaching up to $500k when financial performance supports it.1 Approvals can happen quickly, with funding often available the same day.
Pipe takes a fundamentally different approach to business funding. Rather than offering traditional term loans, Pipe provides capital by advancing against a company’s future recurring revenue.6 This structure is designed for businesses with predictable, subscription-based income streams, such as SaaS or recurring services companies.
Because Pipe’s capital is tied directly to future revenue, repayment adjusts based on incoming cash flow rather than following a fixed monthly installment schedule.2 While this model can resemble a term loan in how capital is used, it lacks the defined repayment timeline and structure typically associated with traditional term financing. Pipe does not offer secured or unsecured loans, nor does it provide long-term installment products for general business use.
Pipe’s model works best for businesses that already generate consistent recurring revenue and need working capital tied closely to that revenue stream. Companies without predictable monthly income, longer operating histories, or subscription-style models are unlikely to qualify.
While both Cardiff and Pipe provide access to growth capital, they are built for very different business needs. Pipe is narrowly focused on recurring-revenue companies seeking short-term liquidity linked directly to future income, making it a specialized tool rather than a broad financing solution.
Cardiff emerges as the stronger business term loan provider for most small businesses seeking term-style financing. Its loans offer fixed repayment schedules, longer timelines, flexible use of funds, and broader eligibility across industries and business models. With scalable loan amounts, faster access to capital, and fewer structural limitations, Cardiff provides a more practical and versatile solution for businesses looking to fund meaningful growth over time.
For companies seeking a true term loan with predictable payments and wide applicability, Cardiff is the clear winner.
Cardiff and Pipe provide useful sources of funding for businesses, but bring very different strengths to the table.
Pipe is a cutting-edge option best suited for companies with subscription or recurring revenue models. Companies that fall into this niche will appreciate Pipe’s transparent, non-dilutive capital as well as the revenue-based repayment and flexible withdrawal model. Pipe’s innovative corporate card also provides a modern way for those same businesses to manage expenses without personal credit risk.
In its niche, Pipe can be a boon. For instance, a high-growth tech startup might use Pipe to fuel expansion without giving up equity or limiting its ability to take on traditional debt later. It’s a fast and founder-friendly funding source for short-term needs when your business model qualifies.
Cardiff, however, appeals more broadly and adapts to more funding situations, making it a stronger small-business working capital loan provider. Cardiff’s wide product mix and customizable financing terms mean they can usually offer a solution tailored to your specific needs. They work with businesses with less-than-perfect credit to deliver fast and useful funding to all kinds of businesses.
Importantly, this extends across industries and the life of a business. Cardiff is willing to finance a trucking company’s next rig, a restaurant’s working capital, a dentist’s office renovation, or a SaaS enterprise’s sales team expansion with its transparent, personalized products. And when these businesses need substantial, low-cost loans, Cardiff connects them with SBA programs.
For the busy business owner weighing options, Cardiff is the more comprehensive and reliable choice for most small businesses. Cardiff’s blend of fast funding, flexible terms, and product depth is hard to beat. They can support your business through a quick cash crunch and be there as you grow, with larger, more strategic financing.
If your business fits Pipe’s niche revenue model and you value repayments that flex with your sales, then Pipe could make sense for targeted, short-term capital needs. But, in our comparison, Cardiff stands out as the best working capital provider and all-around financing partner.
Yes, Cardiff can facilitate SBA loans. These are government-backed loans with funding amounts up to $5 million, terms of up to 10 years, and interest rates in the mid-single digits, to provide small businesses with manageable monthly payments.13
Cardiff helps owners access SBA 7(a), 504, and Microloan programs through their connections to SBA-approved lenders.13 These government-backed loans have strict qualifications and require significant documentation, so Cardiff streamlines the process by preparing the applications.13 This process can still take several weeks, so Cardiff offers its fast, working capital loans as in-between funding.
With Cardiff, business owners get the convenience of their guidance, access to financing for immediate needs, and secure the low-cost SBA loans.
Cardiff does not rely on minimum credit scores for approvals. They look at the overall health of your business through your revenue quality, cash flow strength, asset value, operational history, and industry experience rather than just a credit score. Businesses with scores as low as 550 or as little as six months in operation can often secure financing through Cardiff.5
Essentially, Cardiff’s underwriting is more flexible than that of traditional banks, and they approve over 90% of applicants.12 Businesses with imperfect credit or limited time in operations can often secure funding through Cardiff.
Both capital providers leverage technology to deliver same-day approval and funding.1,6
With Cardiff, you can get a decision in less than five minutes after connecting your accounts via Plaid and completing their simple online application.1 Once approved, Cardiff funds many products that same day or within 24 hours.
Pipe uses a live data-sharing process to speed up your application and underwriting.6 Once approved, business owners can access funds in as little as two hours or within a business day.
The key difference between the fintech platforms is that Pipe’s speed is limited to businesses with recurring revenue models applying for one of its two products.2 Cardiff’s speed applies to all sorts of financing for all types of businesses.1
Pipe offers capital for businesses with recurring revenue.2 Tech companies like SaaS and subscription businesses have the right financial model for Pipe’s platform, but they are not the only ones. Businesses with predictable monthly revenue can also qualify, opening the door to companies like pest control businesses or marketing firms with contracts for regular income.
If your business has a traditional model and gets paid per transaction or project, Pipe likely isn’t a fit. You need consistent subscription or contract payments to leverage Pipe’s platform. Retail businesses, construction companies, medical practices, and restaurants will need to look to other lenders.
Pipe charges a flat fee for its merchant cash advances, which borrowers pay as a percentage of their monthly recurring revenue over time.6 It’s calculated as a percentage of the advanced amount (i.e., 10% of a $50K advance would be $5K in fees), but Pipe does not disclose a starting minimum or range for their fees. The fee depends on the business’s health and the investor’s bids.6 This flat fee is Pipe’s only disclosed borrowing cost.
Cardiff’s costs depend on the product, but they clearly outline them upfront. For a merchant cash advance or working capital loan, Cardiff uses a factor rate that starts at 1.1.4 For products like equipment financing, term loans, business lines of credit, and business credit cards, Cardiff charges a monthly interest rate. Rates start as low as 5.99% on secured loans.1
Cardiff never charges prepayment penalties and will often forgive the remaining interest when borrowers pay off their financing early.9
No. Cardiff offers a variety of no-collateral small-business loans.1 Merchant cash advances,4 business lines of credit,11 and working capital loans all have unsecured financing options.5 And products like equipment loans and invoice financing are self-collaterizing, meaning the asset secures the funding.8 You do not need collateral for any of these options.
Cardiff does offer secured financing options on many of its products. Businesses can offer collateral to get larger loans, longer terms, or lower interest rates on business lines of credit11 or term loans.5 An SBA loan facilitated by Cardiff will likely require collateral, and that is because Cardiff and their partners have to comply with government qualifications.13
No. Pipe’s financing does not provide financing options specifically for equipment purchases. Its product is simply a cash advance against recurring revenue.2 You could use Pipe Capital to purchase equipment or fund projects, but be aware that repayment usually happens over less than one year.
For any business that specifically needs equipment financing spread out over several years, a provider like Cardiff or a traditional equipment lender is a more appropriate solution.
No. Pipe’s advances are purchases of future receivables rather than traditional debt.7 This means it might be recorded as a sale of an asset rather than adding to your liabilities. Investors will see the form of financing in your books, but not as a loan.
Pipe also doesn’t pull personal credit or report to any credit bureaus.6 So an advance from Pipe generally will not impact your credit score, negatively or positively. This means businesses with poor credit can secure capital from Pipe, but they also won’t build any credit history.
Yes, a business could use more than one of Cardiff’s various products at the same time. For example, you could secure an equipment loan to purchase an oven, maintain a business line of credit for your restaurant’s working capital needs, and use a Cardiff Card for daily operating expenses. Cardiff’s team can advise on the best financing mix.
Keep in mind that Cardiff limits financing based on your business’s capacity to repay and revenue history. You must consistently make repayments on previous loans to qualify for additional funding. But in general, Cardiff’s flexibility means you can layer financing solutions as your needs evolve.
No, neither Cardiff nor Pipe provides grants or forgivable funding. They are financing companies, and expect repayment for all capital.
If you’re looking for funding that you don’t have to pay back, look at things like government grants, pitch competitions, or equity investment rather than fintech platforms like Cardiff and Pipe.
Both Cardiff and Pipe can finance young enterprises, depending on the startup’s business model.
Pipe is designed for companies with predictable, recurring revenue, such as SaaS or subscription-based businesses. It provides capital as an advance on future revenue rather than a traditional loan or equity investment, which can be appealing for founders who want to preserve ownership. However, Pipe requires an established revenue track record, and startups without consistent recurring revenue, or those that are pre-revenue, generally won’t qualify.2
Cardiff takes a flexible approach. The company typically looks for at least six months of operating history and bank statements. However, it is known for working with younger businesses and evaluating opportunities based on founder experience, use of funds, and overall financial potential.4 Cardiff supports a wide range of business models and offers some financing options to startups, including equipment financing.1
So, for startups with recurring revenue who need working capital without taking on more liabilities, Pipe is an innovative option. For other business models and startups seeking equipment financing or a long-term financing partner, Cardiff is the better choice.
1https://cardiff.co/
2https://pipe.com/products/capital
3https://pipe.com/products/cards
4https://cardiff.co/business-loans/products/merchant-cash-advance/
5https://cardiff.co/business-loans/products/short-term-working-capital-loans/
6https://pipe.com/help
7https://pipe.com/
8https://cardiff.co/business-loans/products/equipment-leasing/
9https://cardiff.co/learn/faq/
10https://cardiff.co/business-loans/products/business-cards/
11https://cardiff.co/business-loans/products/line-of-credit/
12https://cardiff.co/about/
13https://cardiff.co/business-loans/products/sba-loans/
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