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 working capital loan providers is rarely as simple as comparing interest rates or loan amounts. The type of business you run, how your revenue is structured, how quickly you need capital, and how much documentation you can realistically provide all shape which financing options are even available to you. A startup with recurring SaaS revenue faces a very different lending landscape than an established business pursuing long-term expansion capital, and many business owners discover that only after starting the application process.
That disconnect is part of what makes comparing lenders difficult. Some financing platforms are designed around speed and operational flexibility, while others prioritize larger funding amounts, longer repayment structures, or government-backed lending programs. Arc and Lendistry represent two very different approaches to small business financing, each built around a distinct view of what businesses need most from a capital partner.
Arc does not offer a business line of credit, revolving or otherwise. Its sole capital product, Arc Advance, is a revenue-based financing instrument structured as a single lump-sum advance repaid over a fixed term. There is no draw period, no available credit balance to access incrementally, and no facility that resets or replenishes over time.
For a business seeking the flexibility to draw funds as needed, manage a variable or recurring capital need, or maintain an open credit facility for unplanned expenses, Arc’s product architecture does not accommodate that use case. Arc Advance is purpose-built for startups with strong recurring revenue that need a discrete capital injection.
Rather than a traditional revolving credit facility, Lendistry’s business line of credit operates on a non-revolving basis. Once drawn funds are repaid, that credit does not become available again. Credit limits run from $25,000 to $5 million, fixed at the time of approval.8
The product unfolds in two distinct phases. During the draw period, which may be up to two years, borrowers may pull funds up to an approved credit limit as needed, up to the fixed ceiling. At the conclusion of the draw period, the outstanding balance shifts into an installment repayment phase with a maximum term of five years.8
Pricing is variable, with rates equal to the WSJ Prime Rate plus a percentage. Actual rate offers reflect the borrower’s credit profile, revenue performance, and potential risk.7 One cost consideration worth noting is that prepayment often incurs a fee, which could affect borrowers who anticipate paying off the balance early or refinancing before that window closes.8
To qualify for a business line of credit with this provider, businesses must show at least two years of operating history and carry a credit score of 640 or higher. Approval follows a standard underwriting process, including a review of financial statements, cash flow patterns, and overall credit health.7 Given the structure and eligibility requirements, this LOC is a better fit for established companies managing predictable, recurring capital needs. Access to funds over an extended draw period should outweigh the need for immediate, one-time capital deployment.
Arc Advance gives startups with recurring monthly revenue a way to convert predictable income into working capital. Rather than relying on traditional underwriting, this business cash advance lender connects directly to a company’s banking and billing platforms via API, pulling monthly revenue figures, growth trends, and churn data automatically to assess eligibility in real time. This integration allows them to process applications in minutes and provide offers within 48 hours. Same-day funding is available for companies with an Arc account.3
Arc Advance amounts are tied to annual recurring revenue (ARR). New borrowers can access between 20% and 50% of ARR, while returning clients with solid repayment track records may qualify for 70% or more. First-time advances generally fall between $25,000 and $2 million; returning clients can draw up to $5 million on subsequent advances.2 Businesses that need capital beyond the Advance may consider an Arc Advance Plus.1
Repayment terms range from six months to 18 months, with payments made via automatic ACH debits. Borrowers can choose between fixed monthly payments or a revenue-scaled structure in which payments flex downward during softer revenue months. Arc discloses the total amount owed (principal plus Arc’s flat fee) before any agreement is signed. That amount does not change regardless of the repayment period.2 Thus, early repayment carries no financial advantage.
Arc’s eligibility criteria are straightforward but firm. Applicants must be incorporated in the United States and hold a U.S. bank account. On the revenue side, the business must demonstrate a minimum of $10,000 in monthly revenue sustained over at least six consecutive months, and maintain sufficient cash reserves to cover scheduled repayments without strain. Critically, Arc Advance is exclusive to subscription and recurring-revenue businesses. Companies operating outside that model have no path to qualification.2
Because Arc’s API integrations pull financial data directly from connected systems, it does not require tax returns, bank statements, or personal financial disclosures.3 There is also no personal credit check, personal guarantee, or collateral requirement.2 For startups looking to fund a growth push, bridge to a future raise, or cover a near-term capital need, the time from application to funded capital can be quite quick.
Lendistry primarily provides structured financing products, such as term loans, business lines of credit, and government-backed programs, where repayment is based on fixed schedules rather than a percentage of revenue.
Lendistry provides access to conventional small business loans online. Approved businesses can receive loan amounts starting around $25,000, with higher limits available depending on qualification and loan type.8 Repayment is structured through fixed terms, often extending several years, rather than adjusting based on monthly revenue performance.7
Because Lendistry operates as a regulated lender and SBA partner, its process includes standard credit evaluation, business documentation review, and eligibility verification.8 This approach is designed to provide predictable repayment structures rather than flexible, revenue-tied funding models.
Arc does not provide traditional term loans with fixed amortization schedules, interest rates, or long-term repayment structures. Instead, its financing model is built around advances tied to recurring revenue.
Because of this structure, Arc differs from other business term loan lenders in how capital is underwritten, disbursed, and repaid. Rather than evaluating borrowers primarily through credit history and fixed repayment capacity over time, Arc focuses on real-time business performance data to determine funding eligibility and size.
For startups seeking predictable, multi-year loan terms with set monthly payments, traditional term loan providers may be a better fit. Arc is designed for companies that want faster access to recurring revenue with payments that align with that revenue flow.
Lendistry offers traditional long-term business loans ranging from $25,000 to $5 million with repayment terms extending up to five years. Loan repayment happens through fixed monthly installments, making the structure more predictable for businesses planning long-term investments or ongoing operational expenses.8
The underwriting process follows a conventional lending model that evaluates credit profile, business history, financial performance, and supporting documentation. Applicants are typically required to provide several years of business tax returns, recent bank statements, personal financial statements, and guarantee documentation as part of the review process. A minimum credit score of 640 is generally required.8
Interest rates are not fixed. They are based on the WSJ Prime Rate plus an additional margin, meaning borrowing costs can change over time if market rates shift.7 Lendistry also applies prepayment penalties that decrease gradually throughout the loan term.8
Although the approval process requires substantially more documentation than many fintech financing products, qualified borrowers may benefit from access to larger loan amounts, longer repayment periods, and potentially lower overall financing costs. Once documentation is complete, approved applicants may receive funding within two business days.8
Arc does not offer SBA loans or facilitate access to government-backed lending. Arc’s revenue-based funding model is not integrated with SBA programs, and its venture-backed startup audience typically does not pursue SBA financing. Startups that want the low rates and long terms of SBA 7(a) or 504 financing must pursue those products independently through SBA-approved lenders.
Lendistry holds SBA Preferred Lender status, enabling it to directly approve and fund SBA loans without routing applications through the SBA individually. This may accelerate timelines compared to applying through a lender without preferred status. Lendistry offers SBA 7(a) loans to eligible U.S. businesses in amounts up to $5 million. Interest is variable, starting at WSJ Prime plus 2%, and repayment terms extend up to 10 years for most uses. Though loan terms can stretch to 25 years when applied toward real estate.8
Lendistry also offers SBA 504 loans for fixed asset purchases. SBA 7(a) qualification requires a minimum 650 credit score and more than two years in business.9 SBA borrowers should expect application processing and financing of small business loans to take several weeks, even when using a Preferred Lender like Lendistry.
Lendistry also offers commercial real estate financing through two programs. Its SBA 504 loan program is a government-backed option that provides financing with terms up to 25 years for owner-occupied commercial real estate. These loans can carry competitive government-backed rates.8
Conventional commercial real estate (CRE) term loans may extend up to $10 million. Both require strong financials, established operating history, and typically use the property as collateral.8 Commercial real estate is one of Lendistry’s most differentiated capabilities and a large funding category for the company.
In addition to its lending products, Lendistry serves as an administrator for grant programs funded by government agencies and private-sector partners, with a focus on small businesses in communities recognized as historically underserved. The programs are accessible through Lendistry’s online platform and carry no repayment obligation.11
Lendistry also invests in borrower development through financial education offerings aimed at helping business owners strengthen their credit profiles, navigate lending products, and build more durable long-term financial footing.11
These elements reflect a broader mission that extends beyond transaction-based lending. Few online lenders pair capital access with grant administration and financial education in this way, making it a genuine point of distinction.
Arc provides businesses with an integrated banking account as a core part of its offerings, with a high-yield option for idle cash.6 The business account is the operational banking hub for startup clients. Repayments are auto-debited from it, and the Arc Card integrates with it for expense management and team spending controls.5
The Arc Card is a no-annual-fee corporate debit card tied directly to company cash balances rather than a traditional credit facility.4 Startups can issue cards for employees, manage spending within the same platform, and earn cashback rewards on eligible purchases.5 For SaaS companies looking to consolidate banking, spending, and financing operations into a single system, Arc’s banking and card infrastructure is designed specifically around that workflow.
Arc and Lendistry solve different financing problems, which is why the right fit depends heavily on how your business operates and what type of capital it needs.
Arc is structured around high-growth startups with recurring revenue that prioritize speed, operational simplicity, and access to non-dilutive funding without personal guarantees or extensive documentation. Its platform is designed for companies that move quickly and manage finances digitally within a startup-focused banking ecosystem.
Lendistry approaches financing from a more traditional small business lending model. Its offerings are suitable for businesses seeking larger borrowing amounts, longer repayment terms, and more conventional financing structures. While those options come with greater documentation requirements and underwriting depth, it also opens access to lending products built for long-term expansion and established operational growth.
For businesses comparing working capital loan options, the decision is less about choosing a universally stronger lender and more about identifying which financing structure aligns with the company’s revenue model, growth stage, documentation readiness, and long-term capital strategy.
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod
