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.
No two businesses have the same cash flow or financing needs. That’s why finding the right loan is often about finding a product that actually fits how your company operates. A venture-backed SaaS startup with recurring subscription revenue has very different capital needs than a retail store managing inventory purchases, a contractor covering project costs, or a restaurant navigating seasonal cash flow swings. Yet many lenders market themselves as solutions for small businesses without making those distinctions clear.
Arc and Bluevine are both online working capital companies that offer fast access to capital, but they solve very different problems for very different types of businesses. One is built around helping high-growth startups unlock capital from recurring revenue, while the other focuses on providing flexible working capital through a revolving line of credit available to a broad range of small businesses.
The differences extend beyond eligibility requirements. Funding amounts, repayment structures, borrowing costs, qualification standards, and even the role financing plays in day-to-day cash flow management vary significantly between the two platforms. Understanding those differences is essential to choosing the lender that aligns with your business model, growth plans, and financing needs.
Arc provides an integrated business banking account as part of its platform, offering a high-yield option for businesses holding cash. The account serves as the operational banking hub for startup clients, allowing them to manage deposits, spending, and financing activity from a single dashboard, providing visibility into cash flow alongside any Arc financing facilities.1
Arc also offers a Treasury account designed to help startups earn yield on cash reserves. This feature can be particularly valuable for venture-backed companies that hold significant capital between funding rounds or maintain extended runways, allowing excess cash to generate returns while remaining integrated with the company’s broader financial management tools.5
For businesses approved for a Bluevine business line of credit, Bluevine includes a business checking account by default. The account acts as the central operating hub within the Bluevine ecosystem, supporting everyday business transactions alongside access to credit line draws.11
The account provides standard banking functionality, including ACH transfers, bill pay, and a Bluevine Business Mastercard for spending. It also enables streamlined repayment and funding activity tracking within the same platform used to manage the credit line.11
Bluevine’s business checking account carries no monthly fees and earns interest on eligible balances. It is FDIC-insured through partner banking institutions, adding a layer of protection for deposited funds. When paired with a Bluevine line of credit, the account also enables faster access to draws and more seamless movement between funding and operating capital.11
Bluevine’s business line of credit provides ongoing access to working capital. Approved businesses receive a revolving credit limit ranging from $5,000 to $250,000 and can draw funds as needed for expenses such as payroll, inventory, marketing, seasonal cash flow gaps, or routine operating costs. As outstanding balances are repaid, the available credit replenishes automatically, allowing businesses to continue borrowing without submitting a new application each time capital is needed.7
Because interest accrues only on outstanding balances rather than the full credit limit, businesses can reduce borrowing costs by repaying draws. Businesses that maintain a Bluevine business checking account can transfer funds from their line of credit directly into their account, providing quick access to capital when timing is critical.7 Funds may be deposited to an external account within one to two business days.10
Through this business line of credit lender, each draw is treated as its own borrowing event and follows a defined repayment schedule. Most draws are repaid through 26 weekly ACH payments over six months, although some qualified borrowers may be eligible for a 12-month repayment option with monthly installments.7 This structure provides predictable repayment obligations while preserving ongoing access to the remaining credit line.
Borrowing costs are based on simple interest, with the strongest applicants potentially receiving rates as low as about 7.8%. Bluevine does not charge origination fees, draw fees, maintenance fees, annual fees, or prepayment penalties.7
To qualify, businesses generally must have operated for at least one year, have a healthy credit score (625 or higher), and generate a minimum of $10,000 per month in revenue. A personal guarantee is required. Bluevine also restricts eligibility for certain industries and does not currently offer its line of credit in Nevada, North Dakota, or South Dakota.7
Arc is primarily a business cash advance lender that provides financing designed for revenue-generating startups, with a strong focus on SaaS and other recurring-revenue businesses. This vehicle allows businesses with reliable recurring income to receive funding upfront in exchange for future revenue.3
Underwriting is automated. The platform connects directly to a company’s financial infrastructure, such as banking data and payment systems like Stripe, to evaluate revenue trends, growth rate, cash position, and overall business health.3 This allows Arc to assess companies based on live financial data rather than static statements.
Access to capital is fast relative to traditional lending, with Arc indicating that startups can sync financial data in minutes and receive financing terms within approximately 48 hours, with funding possible shortly thereafter.3
Arc’s eligibility criteria typically include being a U.S. entity with a U.S. bank account. Applicants should also meet baseline revenue thresholds (typically around $250K+ in annual revenue or ARR) and have six months of cash runway to support repayment obligations.3
Arc’s financing decisions are made on a case-by-case basis, with the amount available influenced by factors such as revenue and business performance. Offers for working capital typically top out at 10% of company revenue.3 However, its revenue-based financing guide notes that new customers may access 20%–50% of ARR and established customers potentially qualify for higher percentages.2
While Arc is strongly associated with SaaS and recurring-revenue companies, its current documentation also states that it serves revenue-generating businesses across multiple sectors, including legal, education, advertising, and retail, broadening its applicability beyond purely subscription-based models.3
Bluevine’s financing options are built around traditional small business credit products, primarily a business line of credit structure. This financing product provides access to capital up to a predetermined credit limit, rather than advancing capital based on a percentage of a company’s revenue.6
Repayment is also fundamentally different from revenue-linked models. Bluevine’s credit products are repaid on a fixed schedule, typically through set weekly payments over a defined term, regardless of how a business’s revenue fluctuates during that period.8 Interest accrues on outstanding balances, and businesses repay according to the agreed-upon schedule.7
As such, Bluevine’s financing is structured more like conventional online lending than revenue-based funding.
The Bluevine Business Mastercard is a debit card tied directly to a Bluevine business checking account, meaning purchases are drawn from available account funds rather than a separate credit line. It is designed as an everyday business spending tool within Bluevine’s banking platform and can be used wherever Mastercard is accepted.9
The card can also be issued to multiple team members, allowing businesses to distribute spending access while maintaining centralized oversight. Bluevine provides controls that let account owners set limits and manage employee card usage, making it easier to monitor and structure business spending across a team.9
The card is connected to the checking account, which allows businesses to keep operating funds and spending activity within a single system rather than relying on separate banking and card providers.9
The Mastercard can also be used for ATM withdrawals, providing access to cash when needed. Transactions are reflected against the available balance in the Bluevine business checking account in real time, helping businesses maintain visibility into available funds as they spend.9
Bluevine connects eligible borrowers to SBA 7(a) loans through its network of lending partners, functioning as an introduction point rather than a direct SBA lender. After an application is submitted, an SBA-approved lending partner takes over the process, handling underwriting, SBA review, and final funding decisions for these long-term business loans.7
Because SBA loans involve both lender and government approval, funding timelines are typically longer than standard online business loans and may take multiple weeks, depending on the complexity of the application and documentation requirements. Eligibility is based on SBA program guidelines as well as individual lender criteria, which commonly include factors such as credit profile, business financials, and operating history.
Through its partner network, Bluevine is generally positioned toward smaller SBA loan requests (up to $350,000), while larger financing needs may require working directly with other SBA lenders.6 Specific loan limits and eligibility thresholds can vary by lending partner.
As with most business financing decisions, the better option is not always the small business working capital loan provider with the largest funding amount, the lowest advertised rate, or the fastest approval process. It’s the product that aligns most closely with the way your business generates revenue, manages cash flow, and plans to grow.
Arc and Bluevine approach business financing from fundamentally different directions. Arc is designed around the needs of startups and recurring-revenue companies seeking larger capital infusions that can scale alongside growth. Bluevine focuses on flexible access to working capital through a revolving line of credit that businesses can draw from repeatedly as operational needs arise. Those differences affect everything from qualification requirements and funding amounts to repayment structures and the overall cost of borrowing.
Before choosing between the two, consider how you expect to use the capital. Are you looking for a substantial funding event tied to recurring revenue and long-term growth plans? Or do you need ongoing access to working capital that can help manage inventory purchases, payroll obligations, seasonal fluctuations, or unexpected expenses as they occur? Answering those questions will often narrow the field more effectively than comparing rates or loan limits alone.
Ultimately, the right working capital lender is the one that fits your business. The clearer you are about your business needs, the easier it becomes to identify whether Arc’s startup-focused platform or Bluevine’s revolving credit model is the better match for your situation.
1https://joinarc.com
2https://www.joinarc.com/guides/revenue-based-financing
3https://www.joinarc.com/working-capital
4https://www.joinarc.com/business-account
5https://www.joinarc.com/treasury-management
6https://www.bluevine.com/business-loans
7https://www.bluevine.com/business-loans/line-of-credit
8https://support.bluevine.com/s/article/What-are-the-Bluevine-Line-of-Credit-repayment-plans-and-their-requirements
9https://www.bluevine.com/business-checking/debit-card
10https://www.bluevine.com/guides/line-of-credit/how-to-use-line-of-credit
11https://www.bluevine.com/business-checking
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