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.
Finding the best lender for small business loans is about choosing a solution that fits how your business operates. Whether you’re managing cash flow, funding growth, or trying to avoid giving up equity, the wrong choice can create more friction than it solves.
American Express is a financial powerhouse with a wide reach. Its offerings, from business credit cards to lines of credit, serve businesses of all sizes and industries, making it a versatile choice for many owners.
Arc, in contrast, is a fintech specialist built for high-growth startups and subscription-based businesses. It converts predictable recurring revenue into upfront cash, providing fast, non-dilutive financing for companies that fit its niche.
Both lenders share some traits, including flat fees and a lack of equity or collateral, but beyond that, their approaches diverge greatly. Understanding who qualifies and how the financing works is the first step for any small business owner looking for the right fit.
Any qualified U.S. small business. No specific business model or revenue type required.
Venture-backed and high-growth startups, particularly SaaS and subscription businesses with strong Monthly Recurring Revenue (MRR). Traditional businesses without recurring revenue will not qualify.
Revolving business line of credit (via Amex Business Blueprint). Wide range of business credit cards available separately to any qualified applicant.1
Arc Advance and Arc Advance Plus (revenue-based financing against ARR/MRR). Arc Card (corporate debit card). Business banking account. No revolving LOC, traditional term loans, equipment financing, or SBA loans.4
At least one year in business. Credit score of 660+ required. Minimum $3,000 in average monthly revenue. No physical collateral required. Personal guarantee is standard.1
U.S. entity with U.S. bank account. Minimum $10,000+ MRR for at least six months. Sufficient cash runway to repay. SaaS/subscription revenue model required. No personal guarantee and no collateral.5
Line of credit from $2,000 to $250,000. Occasionally higher for exceptional businesses.1
20%–50% of ARR for new customers with typically $25,000–$2 million on first advance. Up to 70%+ of ARR up to $5 million for established customers.5
Approvals typically within minutes. Funds deposited within one to three business days of a draw, or next business day with Amex business checking.1
API-driven underwriting takes minutes. Same-day funding with Arc account and offer received within 48 hours.6
Each draw is repaid over six, 12, 18, or 24 months in fixed monthly installments. Shorter one to three-month single-pay options also available.1 Remaining fees waived when a draw is repaid ahead of schedule.2
Fixed monthly ACH installments or revenue-scaled payments over six to 18 months. Total repayment amount fixed upfront.5
One-time flat fee per draw (no compounding interest). Fee ranges ~3–9% for 6-month draws up to ~27% for 18-month draws. Remaining fees waived on early payoff. No annual or maintenance fees.1
Flat upfront fee (no interest, no APR). Total repayment amount fixed and disclosed before acceptance. No personal guarantee, no collateral.5
True revolving line of credit. As draws are repaid, those funds become available again without reapplying.1
Not offered. Each Arc Advance is a discrete lump sum. Repeat advances available as metrics update, but not a revolving facility.
Wide range of business credit cards available to any qualified U.S. applicant, including no-fee cashback, premium travel rewards, charge cards, and more.3
Arc Card is a corporate debit card, not a credit card. No preset spending limit (scales with cash and revenue). Cashback rewards. Cannot carry a balance.7
Any qualified U.S. small business. No specific business model or revenue type required.
Venture-backed and high-growth startups, particularly SaaS and subscription businesses with strong Monthly Recurring Revenue (MRR). Traditional businesses without recurring revenue will not qualify.
Revolving business line of credit (via Amex Business Blueprint). Wide range of business credit cards available separately to any qualified applicant.1
Arc Advance and Arc Advance Plus (revenue-based financing against ARR/MRR). Arc Card (corporate debit card). Business banking account. No revolving LOC, traditional term loans, equipment financing, or SBA loans.4
At least one year in business. Credit score of 660+ required. Minimum $3,000 in average monthly revenue. No physical collateral required. Personal guarantee is standard.1
U.S. entity with U.S. bank account. Minimum $10,000+ MRR for at least six months. Sufficient cash runway to repay. SaaS/subscription revenue model required. No personal guarantee and no collateral.5
Line of credit from $2,000 to $250,000. Occasionally higher for exceptional businesses.1
20%–50% of ARR for new customers with typically $25,000–$2 million on first advance. Up to 70%+ of ARR up to $5 million for established customers.5
Approvals typically within minutes. Funds deposited within one to three business days of a draw, or next business day with Amex business checking.1
API-driven underwriting takes minutes. Same-day funding with Arc account and offer received within 48 hours.6
Each draw is repaid over six, 12, 18, or 24 months in fixed monthly installments. Shorter one to three-month single-pay options also available.1 Remaining fees waived when a draw is repaid ahead of schedule.2
Fixed monthly ACH installments or revenue-scaled payments over six to 18 months. Total repayment amount fixed upfront.5
One-time flat fee per draw (no compounding interest). Fee ranges ~3–9% for 6-month draws up to ~27% for 18-month draws. Remaining fees waived on early payoff. No annual or maintenance fees.1
Flat upfront fee (no interest, no APR). Total repayment amount fixed and disclosed before acceptance. No personal guarantee, no collateral.5
True revolving line of credit. As draws are repaid, those funds become available again without reapplying.1
Not offered. Each Arc Advance is a discrete lump sum. Repeat advances available as metrics update, but not a revolving facility.
Wide range of business credit cards available to any qualified U.S. applicant, including no-fee cashback, premium travel rewards, charge cards, and more.3
Arc Card is a corporate debit card, not a credit card. No preset spending limit (scales with cash and revenue). Cashback rewards. Cannot carry a balance.7
The American Express Business Line of Credit, offered through Amex Business Blueprint, is a revolving line of credit ranging from $2,000 to $250,000. Once approved, businesses can draw any amount up to their credit limit at any time. Each draw is a separate loan with a repayment term of six, 12, 18, or 24 months in fixed monthly installments, or one to three-month single-pay options for very brief needs. The full cost of each draw is fixed and disclosed before finalizing.1
Amex charges a flat fee per draw rather than accruing interest. That fee ranges from approximately 3–9% for a 6-month draw to approximately 27% for an 18-month draw. Crucially, if a draw is paid off early, this business line of credit provider waives the remaining unearned fees, meaning early repayment directly reduces the total cost.1
The line carries no annual, maintenance, or inactivity fees. As draws are repaid, those funds become available again without reapplying. Qualification requires at least one year in business, a credit score of approximately 660 or above, and at least $3,000 in average monthly revenue. A personal guarantee is standard.1
Arc does not offer a traditional revolving line of credit. Its financing is tied to future revenue rather than a reusable credit limit, so businesses cannot draw and repay funds like they would with Amex.
American Express does not offer revenue-based financing. Its business financing products are structured around traditional credit models, such as fixed-fee loans or lines of credit with defined repayment terms. These products are not tied to a company’s recurring revenue or cash flow performance in the way revenue-based financing is.
With American Express, approved businesses can access capital through tools like business credit cards or working capital lines, where repayment follows a set schedule or minimum payment structure. Costs are typically presented as fees or interest, depending on the product, and repayment obligations remain consistent regardless of short-term fluctuations in revenue.
This approach can work well for businesses that prefer predictable repayment terms and have stable cash flow to support regular payments. However, it differs from revenue-based models that adjust repayment based on incoming revenue, which may offer more flexibility for businesses with variable or subscription-driven income.
Arc Advance is a revenue-based financing product designed specifically for startups with strong, consistent Monthly Recurring Revenue (MRR). Arc connects to the company’s banking and billing infrastructure, such as Stripe, via API integrations to instantly assess MRR, growth rate, and churn metrics. Based on this analysis, Arc offers an advance equal to 20%–50% of ARR for new customers, or up to 70%+ for repeat clients. First-time advances typically range from $25,000 to $2 million; subsequent advances can reach $5 million for established Arc clients.5
Arc handles repayment through a series of automatic monthly ACH debits over six to 18 months. Payments can be structured as fixed monthly installments or revenue-scaled. In months where MRR dips, the revenue-scaled payment decreases proportionally. The total repayment amount (advance plus flat fee) is fixed upfront before acceptance.5 No personal credit check, personal guarantee, or collateral is required. Arc also offers Arc Advance Plus for additional capital beyond the standard advance.4
To qualify for these fast working capital loans, a business must be a U.S. entity with a U.S. bank account, generate at least $10,000 in MRR for a minimum of six months, and maintain sufficient cash runway to service repayments. Traditional businesses without recurring subscription revenue cannot qualify.5
American Express offers an extensive selection of business credit cards for small businesses, with options designed to match a wide range of spending habits and financial priorities. From simple cashback cards with no annual fee to premium travel-focused products with higher fees and robust benefits, the lineup allows business owners to choose a card that aligns with how they operate. Importantly, these cards function independently from any lending products. Businesses do not need an existing line of credit or prior relationship to apply.
For companies that travel frequently, cards built around earning Membership Rewards points, which can be transferred to airline and hotel partners, can be a good fit. These cards often include features like airport lounge access and airline fee credits, making them appealing for owners and teams who spend significant time on the road. On the other end of the spectrum, businesses that prioritize simplicity may prefer cashback-focused options that provide straightforward returns on everyday expenses without the need to manage points or redemption strategies.3
American Express also offers no-annual-fee cards that still deliver value through rewards and, in some cases, introductory financing periods. For businesses with higher monthly spend, charge card options provide added flexibility with no preset spending limit, though balances are typically expected to be paid in full each cycle. This structure can support companies that want purchasing power without a fixed cap, provided they maintain consistent cash flow.3
Across the portfolio, American Express includes a range of built-in benefits that extend beyond rewards. These commonly include purchase protections, extended warranties, travel-related coverage, and tools that help track and manage expenses across multiple employee cards. Integration with Amex’s account dashboard allows business owners to monitor spending, categorize transactions, and maintain visibility into company expenses.3
That said, the value of these cards depends on how they are used. Premium options often carry substantial annual fees, which require active use of perks and rewards to justify the cost.3 While acceptance has improved significantly, some vendors still do not accept American Express, which can occasionally limit usability.
For many businesses, the breadth of credit card options is the main advantage. Whether the goal is to earn rewards, simplify expense tracking, or access flexible spending capacity, American Express provides multiple paths, making it a widely used tool for managing day-to-day business expenses.
The Arc Card is a corporate debit card available to Arc account holders. It has no preset spending limit in the traditional sense. Instead, the available balance scales with the company’s cash holdings and revenue metrics.7 The card earns cashback rewards on purchases, carries no annual fee, and integrates with team spending controls and real-time expense analytics through Arc’s platform.8
Because it is a debit card, spending is limited to available funds in the Arc account. The Arc Card cannot extend credit, cannot carry a balance, and does not build credit history in the way a true credit card does.7
American Express offers business banking through its Business Blueprint platform, which combines checking, lending, and card products into a single interface. The platform allows business owners to view multiple financial products, including business cards, lines of credit, and checking accounts, in one consolidated dashboard for better visibility into cash flow and spending.9
The American Express business checking account itself is a digital, branchless account with no monthly maintenance fees, mobile banking capabilities, and integrations with tools like QuickBooks for accounting. Businesses can move funds, deposit checks, and manage transactions through the Amex app or online interface.10
Additional features include earning rewards on debit card purchases and access to a competitive APY on balances (up to certain limits), positioning the account as both an operational tool and a way to generate incremental value from idle cash.10
Taken together, American Express’s banking products are designed for a broad small business audience, focusing on ease of use, integrated financial visibility, and pairing everyday banking with credit and payment tools inside one ecosystem.
Arc takes a specialized approach by making its business banking account a central part of its platform, particularly for venture-backed and subscription-based companies. The account is designed to function as the primary operating hub, where incoming revenue, financing draws, and repayments are all managed.4 Arc also offers a high-yield structure for idle cash, which can be attractive for startups holding larger balances between growth cycles.11
A key feature of Arc’s model is automation. Repayments are directly tied to the account, reducing the need for manual scheduling, while the Arc Card connects spending activity to the same system for real-time visibility and control. This tight integration allows startups to manage capital, spending, and repayment within a single workflow.4 For companies with predictable recurring revenue, this setup aligns closely with how they already operate financially.
American Express and Arc offer small business owners two very different kinds of services. American Express provides business lines of credit for a wide range of industries and business types, making it a flexible choice for many small business owners. Arc takes a more specialized approach, offering up-front capital for high-growth startups and subscription-based businesses.
Both options have benefits, but the right choice depends on your business model. Ultimately, your decision may come down to whether your business qualifies for Arc Advance or whether you need a more general-purpose solution.
1https://www.americanexpress.com/en-us/business/blueprint/business-line-of-credit/
2https://www.americanexpress.com/en-us/business/blueprint/help-center/business-line-of-credit/fees
3https://www.americanexpress.com/us/credit-cards/business/business-credit-cards/?inav=us_menu_cards_business_credit_cards_view_all_business_credit_cards
4https://joinarc.com
5https://www.joinarc.com/guides/revenue-based-financing
6https://www.joinarc.com/working-capital
7https://www.joinarc.com/encyclopedia
8https://www.joinarc.com/business-account
11https://www.joinarc.com/treasury-management
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