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.
Money fuels your business. When cash flow gets tight or unexpected expenses pop up, even the best-laid plans can stall. That’s why you need access to fast, reliable financing options. Not all lenders offer the same lending products or opportunities, and finding the right one can allow you to seize an opportunity rather than watching it slip away.
Cardiff and PayPal each promise to make financing easier for small businesses. Which one is the top choice for your business? That depends. Cardiff positions itself as a full-service working capital lender, offering a range of loans, credit lines, and equipment financing tailored to businesses of all sizes. PayPal, by contrast, focuses on simplicity and speed, delivering short-term loans primarily for merchants already using its payment platform.
Choosing between the two is about how well each lender aligns with your business’s rhythms and ambitions. In this guide, we’ll break down the key differences and help you see which option can truly keep your business moving forward without unnecessary roadblocks.
Many business loan options, including equipment loans, business lines of credit, MCA, SBA loans, business credit cards, and more to cover both short term cash needs and long-term growth projects.1
Focused on short term lending with a fixed-term PayPal Business Loan and a sales-based working capital advance (no equipment, SBA, or credit line products).7
Many business loan options, including equipment loans, business lines of credit, MCA, SBA loans, business credit cards, and more to cover both short term cash needs and long-term growth projects.1
Focused on short term lending with a fixed-term PayPal Business Loan and a sales-based working capital advance (no equipment, SBA, or credit line products).7
Offer loan sizes from about $5,000 up to $500,000 (or higher with SBA programs). Finances small needs or larger projects, with average approvals around $82,000.1
$5,000–$100,000 for first-time Business Loan borrowers (up to $150,000 for repeat clients). $1,000 to $200,000 available in Working Capital with up to $300,000 for repeat borrowers.7
Can usually provide application approvals in as little as five minutes and funding as fast as the same day.1 Government-backed loans often take longer.
When approved, loan funds arrive by the next business day for loans. PayPal Working Capital is even faster with funds deposited within minutes once approved, since it’s integrated with a PayPal account.7
Repayment schedule depends on the product and can be daily, weekly, or monthly payments via ACH. Three to 24 month terms available on working capital advances and up to two to five years on equipment. Longer for SBA loans. Cardiff tailors terms to suit your cash flow.1
Fixed, short term repayment through automatic weekly ACH transfers over a term of 17–52 weeks (four to 12 months) for business loans. The working capital advance has no set term; instead, PayPal deducts a percentage of your PayPal sales until repaid (with a minimum required paydown every 90 days).7
Uses traditional interest or fixed factor rates depending on the product. For example, secured loans can start around 5.99% APR, while MCA charge a one-time factor (e.g. 1.10 factor for ~12-month financing). No hidden fees and no prepayment penalties.1
Flat fee per loan and no interest. Total repayment amount disclosed from the start. No late fees or penalty fees on either the Business Loan or Working Capital. Since terms are short, the effective cost (in APR terms) may be higher than longer-term loans.7
Criteria generally include six to 12 months in business and $20,000 in monthly revenue for working capital loans. A credit score of 500-550 is usually enough to qualify. Business health plays a significant role. No hard credit pull needed to check your options. Startups can qualify for equipment financing.2
At least nine months in business and $33,300 annual revenue required for a PayPal Business Loan. Must have a PayPal Business account to apply. PayPal Working Capital requires a 90-day old PayPal account and $15k+ in PayPal sales in the last year (or $20k for Premier accounts). No personal credit check for PayPal Working Capital, but the Business Loan does require a credit check, though decisions are based on overall business outlook.7
For time-sensitive capital needs, Cardiff offers two types of working capital loans: merchant cash advance (MCA) or short term loans. Both products help small and mid-size businesses bridge cash flow gaps quickly by turning your future revenues into immediate capital. Terms for working capital can be as short as three months or up to 24 months.2
Cardiff provides working capital quickly, often the same day you’re approved, whether it’s for payroll, inventory, or unexpected expenses. Operating as a merchant cash advance company, they focus on speed and flexibility, delivering financing solutions designed for the ups and downs of running a business. You can pick repayment terms that work for you, such as daily, weekly, monthly, or tied to sales.1
Cardiff does not have a minimum credit score requirement (500+ FICO is usually enough), and businesses only need to show six months in business with $20K+ monthly revenue and three deposits per month.2 Cardiff even allows early payoff discounts on merchant cash advance loans, so you can save on fees by repaying early. It’s a solution meant for any small business needing fast liquidity and repayment options that align with actual cash flow.
PayPal’s Working Capital is a form of merchant cash advance available exclusively to businesses that process payments through PayPal. It advances up to $200K for first-time borrowers and $300K for repeat borrowers within minutes.7
Repayment is automatically deducted as a percentage of your daily PayPal sales. Thus, payback rises and falls with your revenue. PayPal does not charge interest on the loan, but you will owe a fixed fee. There’s also no hard timeline to repay, but you must pay at least 5%–10% of the total owed every 90 days, which means even if sales are slow, you’ll still need to make minimum payments.9
PayPal does not base approvals for Working Capital on your credit score. Instead, you need to have a 90+ day old PayPal Business/Premier account with sufficient sales history ($15K/year for Business accounts and $20K/year for Premier). The big appeal here is speed and simplicity for existing PayPal merchants. The application is just a few clicks, approval is almost instant, and funds land in your PayPal account immediately.7
Unfortunately, you can only secure funding from PayPal if your business’s revenue flows through PayPal, and you repay the advance through those PayPal receipts. Also, there’s no option to extend the term beyond roughly a year, but the more you sell, the faster you’ll fully repay the advance.
Cardiff clearly stands out as the best lender for quick working capital due to the broader accessibility and flexibility of its loan options. It offers working capital financing to any small business (not just PayPal sellers) and can provide funding the same day with longer repayment terms (up to 24 months) with a choice of repayment schedules.
PayPal’s Working Capital is fast and convenient if you are already processing payments on the platform and meet their qualification criteria. However, Cardiff’s solution wins for its ability to deliver cash flow financing to a larger audience with terms that fit the unique and varied needs of small businesses nationwide, regardless of where they bank or how they process funds.
Cardiff’s online short term business loans function more like a standard installment loan. These are lump-sum short term loans repaid on a fixed schedule. Amounts typically range from $5,000 up to $500,000.10 You get the benefit of predictable payments and a clear end date.
Cardiff’s advantage is that it doesn’t cap loan terms at one year. In fact, the average loan term with Cardiff is 39 months.1 When capital needs are ongoing, Cardiff can even transition you to other products (like a line of credit) as you grow.
The costs are competitive with rates starting at 5.99% for SBA products or secured short term business loans, and Cardiff often provides 30-day interest-free payoff options and no prepayment penalties. This structure gives you an incentive and ability to save money by clearing the loan early.1
Qualification for term loans for small businesses demands a bit more than the MCA. Ideally companies should have a year in business and decent credit. Having said that, Cardiff is known to work with less-than-perfect credit (around 550+) and will consider the overall health of the business.10 Essentially, Cardiff’s short term loan product offers fast, flexible funding with fixed payments, bridging the gap between quick cash advances and longer-term financing.
The PayPal Business Loan is a short, fixed-term loan designed for small businesses that need fast cash. Borrowers can apply for $5,000 up to $100,000 on their first loan (and up to $150,000 on subsequent loans after repaying the first loan).7
Business Loan durations are relatively brief (anywhere from 17 weeks to 52 weeks or four to 12 months), depending on the loan amount and which repayment schedule you qualify for. PayPal makes repayment straightforward. Each week, they withdraw your payment from your business bank account via ACH transfer. Instead of ongoing interest, PayPal charges a single fixed fee for borrowing.7
While the application won’t impact your credit score, PayPal does perform a credit check if you accept a loan offer. To qualify, your business must be at least nine months old with over $33,300 in annual revenue, and you’ll need to have a PayPal Business account.7
The PayPal Business Loan is great for its speed (funding by next business day) and simplicity, especially if you already use PayPal. However, it’s a one-size-fits-all short term loan with no options longer than the 1-year term. If you need a larger loan or a longer repayment period, this product won’t cover that. It’s best suited for quick injections of capital that you can comfortably repay within a year.
In the short term loan space, Cardiff has the edge thanks to its higher funding limits and greater flexibility. PayPal’s Business Loan is capped at $100K (for first time borrowers) and one-year maximum repayment term.
On the other hand, Cardiff can provide financing up to $500K repaid over a term of 39 months or more, if needed. This structure accommodates a wider variety of business needs and cash flow models, opening the loan up to businesses with wider financial gaps and lower payment thresholds. Additionally, Cardiff’s willingness to work with borrowers who have lower credit means more businesses can secure a loan that truly fits their needs.
While PayPal offers a quick, off-the-shelf solution for small amounts, Cardiff’s short term loans for business stand out as a more scalable and accommodating choice for growing businesses.
With a Cardiff line of credit (LOC), you’re approved for a credit limit based on your business’s financials. You can withdraw up to that limit when expenses arise. Notably, interest only accrues on the amount you withdraw, and as you repay the money borrowed, you replenish the LOC for future use.6 This revolving structure allows you to cover unexpected expenses or changes in revenue without applying for a separate loan or draining your cash accounts.
Cardiff’s LOC comes with no maintenance or inactivity fees and no closure fees or prepayment penalties. You simply pay for what you borrow plus simple interest, starting at 9.9%. You don’t need to pledge collateral either. Cardiff offers both secured and unsecured lines of credit. To qualify, you generally should have a solid track record of at least a year in business, consistent revenue, and a FICO score of 550 or above.6 As a business line of credit lender, Cardiff’s approach is more holistic than many others. They consider the overall picture, potentially approving companies that don’t qualify based on credit score alone.
The line can grow with you as well. As your business expands, Cardiff can often increase the credit limit. In essence, you get fast access to funds whenever necessary without having to reapply each time, and there are no additional costs until you actually use it.
PayPal’s small-business financing is limited to its PayPal Business Loan and PayPal Working Capital. If your business needs the ongoing flexibility of a line of credit, you would have to seek that financing from another provider.
The PayPal Business Debit Mastercard is one tool business owners might consider to cover small, unplanned purchases or expenses, but that’s just spending your existing PayPal balance (not borrowing new funds as a credit line). Bottom line. PayPal cannot provide a true revolving credit facility for your business.
In this category, Cardiff offers the best business line of credit because PayPal has no line of credit product. PayPal’s Working Capital loan and Business Loan are both structured as lump-sum advances with fixed repayment terms. That means once you’ve taken the loan, you’re locked into a set repayment schedule until it’s paid in full. These products can be useful for covering a one-time expense, but they don’t provide the flexibility to borrow, repay, and borrow again as your business needs evolve.
Cardiff’s line of credit, on the other hand, gives you ongoing access to working capital without the need to reapply each time you need funds. This revolving structure allows you to draw funds when opportunities or challenges arise and then pay them back on a timeline that better matches your cash flow. If having a reliable, reusable credit line is important to your operations, Cardiff clearly has the advantage.
Cardiff specializes in equipment leasing and financing and works with businesses in various industries when they need to acquire vehicles, machinery, technology, or any equipment without huge upfront costs. With Cardiff, you can finance up to 100% of the equipment’s cost (often including soft costs like installation or shipping) and pay it off over two to five years with affordable monthly payments.3 The longer term enables you to use the revenue generated by the equipment to help pay for itself over time.
Not sure whether you need a loan or a lease? Cardiff is flexible in structuring deals. You can choose a loan if you want to own the asset at the end of the term. If you may want to upgrade in a few years, an equipment lease could be a better fit. These leases often include a provision to purchase the equipment at the end of the term. Cardiff even offers operating leases with lower payments that might not appear on your balance sheet, which can have accounting benefits.3
The key advantages of using financing for business equipment include the ability to preserve cash (no large down payment needed), potentially realize tax deductions, and get the software or machinery you need now to grow your business.
Cardiff typically requires a credit score of at least 550 to approve loans for business equipment. Startups can qualify if the owner can demonstrate a strong business plan and experience in the industry. The application process is quick, and because Cardiff’s team understands the value of the collateral (the equipment), they’re often willing to lend even when other lenders won’t.3
Repayment with Cardiff can be flexible as well with options to align payments with high revenue seasons or ramp up payments as the equipment generates income. Repayment of equipment financing can also open the door to approval for a line of credit. Cardiff’s equipment financing provides a tailored, flexible path to purchase or lease equipment, with the ability to conserve cash and get funded quickly.
There is no specific program through PayPal to finance equipment purchases over multiple years. If you need to buy equipment, the best option through PayPal would be to use the general short term Business Loan (max one year term) or Working Capital advance, neither of which is tailored for large equipment purchases.
While these products work for smaller needs, they might not provide sufficient loan amounts or long enough terms for expensive equipment. For example, financing a costly piece of machinery and repaying it in 12 months via PayPal could result in very high weekly payments, which isn’t practical for most businesses.
Additionally, PayPal doesn’t offer true equipment leases or any program where the equipment itself serves as collateral to secure the loan against the equipment. Businesses seeking to finance expensive equipment over multiple years will need to seek out true equipment financing through another lender.
When it comes to acquiring equipment, Cardiff is the stronger equipment financing company because it provides financing designed specifically for this purpose. Cardiff’s equipment loans and leases can stretch up to five years and are structured around the lifespan and value of the asset, making repayment more manageable.
By contrast, PayPal doesn’t offer dedicated equipment financing. The only way to cover these costs through PayPal would be to use a Working Capital loan or Business Loan—both of which are short-term, lump-sum products with fixed repayment schedules. Using these for large equipment purchases can strain cash flow, since you’d have to repay the loan quickly regardless of how long it takes for the equipment to generate returns.
Cardiff’s approach ties the financing to the asset itself, giving you the time and flexibility to pay it off while putting the equipment to work for your business.
As part of its product suite, Cardiff facilitates SBA loans, giving small businesses access to government-backed financing. SBA loans are highly sought-after because they offer businesses low-interest rate financing over long repayment terms (up to 10 or even 25 years in some cases). Small business loan financing amounts can range widely (SBA loans can go up to $5 million, depending on the program), making this ideal for major investments, expansions, or refinancing higher-cost debt.
SBA loans have stricter qualification criteria, including a credit score of 600 or higher, solid financials, and typically two or more years in business. However, Cardiff helps clients package and present their application to an SBA-approved lending partner, streamlining what can otherwise be a lengthy process. Cardiff’s value is in guiding borrowers through the requirements. They provide the same fast initial engagement and help determine if you meet the SBA eligibility checklist (e.g., incorporated business, 1+ years operating, $20K+ monthly revenue, etc.).4
If a no collateral small business loan appears to be a viable option for your business, Cardiff acts as your advocate to expedite the process. You can get access to the benefits of an SBA loan, including the 504, 7(a) loan, or Microloan program with far less hassle. And if the timeframe or paperwork of an SBA loan takes too long, Cardiff can quickly pivot you to one of its in-house alternatives to meet your capital needs.
Cardiff offers a path to SBA financing, opening the door for clients to obtain the cheapest money on the market when appropriate. These loans do often require personal guarantees and collateral. though.
When it comes to SBA loans, Cardiff stands out as the only real option in this comparison. Cardiff works directly with business owners to navigate the SBA application process, helping them access government-backed financing that combines lower interest rates with longer repayment terms than most private loans can match.
For many small businesses, small loans for business expenses can be the difference between affordable growth and overwhelming debt. Having a partner that understands the complexities of SBA loans and can guide you through the paperwork, eligibility requirements, and lender relationships makes the process far more achievable than going it alone.
PayPal, by contrast, simply doesn’t operate in this space. They don’t offer SBA loans, nor do they provide any assistance with applications. Their lending products are limited to fixed-payment working capital or term loans, which can be useful for short-term needs but don’t provide the scale, cost efficiency, or government backing that SBA loans deliver. For business owners seeking this kind of long-term, strategic financing, Cardiff is the only choice between the two companies.
In addition to loans, Cardiff offers two business credit cards to help owners manage expenses as they arise. Cardiff’s Business Rewards Card and standard Business Card both feature 0% introductory APR for the first year on purchases and transferred balances, which is a great benefit for financing expenses interest-free during the first year. They also come with no annual fee, 24/7 customer service, and online account management tools.6
Additionally, the Business Rewards Card provides cash back on purchases, allowing you to earn while you spend. These cards also help separate business expenses from personal ones, which is important for recordkeeping and building credit for your business.
With these business credit cards for small businesses, you get a revolving credit card line for everyday business spending, emergency purchases, or even as a supplement to a loan for extra liquidity. It’s another financial tool Cardiff gives clients to support their operations. Whether you need to buy office supplies, pay for travel, or cover an unexpected bill, a Cardiff business credit card offers convenience and breathing room, especially during that 0% APR intro period.
There is currently no PayPal-branded business credit card on the market. The only card PayPal provides to business account holders is the PayPal Business Debit Mastercard, which is linked to your PayPal balance. However, it is not a credit card, and it doesn’t extend credit. It only lets you spend your existing PayPal funds.
If you want a business credit card with rewards or an interest-free period, you would need to approach a different bank or card issuer.
In the credit card category, Cardiff once again sets itself apart by offering something PayPal does not. Cardiff provides two business credit card options, both designed to give small business owners practical, low-cost flexibility for everyday spending.
With features like a 0% introductory APR for 12 months on purchases and balance transfers, no annual fee, and rewards such as enhanced travel benefits and 24/7 cardmember service, these cards function as an accessible line of revolving credit that can help smooth cash flow, cover operational expenses, and even consolidate higher-interest debt. For businesses that want financial breathing room or the ability to separate personal and business expenses, having one of the best credit cards for business expenses in your toolkit makes a real difference.
PayPal, on the other hand, doesn’t offer any business credit cards whatsoever. Their products are limited to fixed working capital and term loans, which may help with lump-sum financing but don’t give the ongoing flexibility or rewards that a credit card provides. Without a revolving credit option, PayPal leaves business owners with fewer tools to manage day-to-day financial needs.
PayPal’s financing Business Loan and Working Capital are ultra-fast and super convenient financing options for businesses already using PayPal. If you need a smaller, short term boost and you process a lot of your sales through PayPal, their loan products can be a handy, no-fuss solution. PayPal’s model with one flat fee, automated payback, and minimal effort required shines in its simplicity.
Ultimately, Cardiff proves to be the more versatile and scalable working capital loan provider for small businesses. Cardiff brings a broader product mix of financing options, from flexible credit lines to equipment and SBA loans, covering financing needs that go well beyond what PayPal offers. With Cardiff, you can find funding whether you need $10K for inventory or $250K to buy new equipment, regardless of whether your credit is spotless or just fair.
Cardiff also provides longer-term solutions, larger loan sizes, and a personalized approach to underwriting. Their ability to deliver funds as fast as the same day while tailoring terms to your business showcases a level of flexibility and customer-centric service that PayPal’s one-size-fits-all algorithm can’t match.
PayPal’s loans are useful in niche scenarios, but for most small businesses, Cardiff is the stronger working capital company. Cardiff offers far more flexibility, speed, and room for growth, making it a financing partner that can adapt as your business evolves. If you want a funding source that can handle everything from a cash flow patch to a major expansion, Cardiff’s comprehensive offerings and willingness to work with your unique situation make it the leading option.
No. PayPal’s financing is limited to a short term installment loan and a working capital advance. If you need a revolving credit line for your business, you’d have to seek that from another provider.
Cardiff does provide a minimum credit score for loan approval. However, a personal credit score of 500 or higher is usually acceptable. They focus more on business performance (revenues, cash flow) than personal credit, and they even consider exceptions. Cardiff may still fund your business even if your credit is below traditional lending standards.
Checking your options with Cardiff will not trigger a hard credit inquiry. Cardiff’s initial application uses a soft pull to pre-qualify you. A hard credit check may come later in the process if you decide to move forward with a particular loan offer, but just exploring rates and terms won’t impact your credit.
PayPal does not do a personal credit check for the PayPal Working Capital advance. Approval is based on your PayPal sales history. Exploring PayPal’s Business Loan offers won’t hurt your credit, either. Initially, you get an offer via a questionnaire without a hard pull. However, if you accept the loan, PayPal (through its partner WebBank) will do a credit check and other checks before funding, which can impact your credit score.
Both are fast, but Cardiff is extremely quick, often providing approval in minutes and funding the same day as approval. PayPal is also speedy. Business Loans can fund by the next business day, and Working Capital funds are available in a PayPal account within minutes of approval. In practice, Cardiff’s timeline from application to cash in account is often as fast or faster, especially since they pre-approve in five minutes online.
Yes, in certain cases. While Cardiff’s working capital loans typically require six to 12 months in business, they do work with startups for specific needs. Notably, startups can qualify for equipment financing through Cardiff if they have solid credit and a business plan.
PayPal’s financing is tied to its ecosystem. To get a PayPal Business Loan, you must have a PayPal Business account. However, you don’t necessarily have to process all payments through PayPal.
To get PayPal Working Capital, you must process sales via PayPal since the loan amount and repayment are based on your PayPal transaction volume. If your business doesn’t use PayPal for sales, you won’t qualify for PayPal’s financing products.
Yes, with both. Cardiff often allows repeat financing. In fact, 84% of Cardiff customers receive additional funds within six months of paying off their prior loan.1 They can often reward good payment history with larger or lower-cost offers over time.
PayPal also allows renewals. Once you’ve repaid one Working Capital advance (or most of it), you can apply for another, and repeat borrowers may get higher limits (up to $300K). The same goes for the Business Loan. You can take a new loan after finishing the first, with up to $150K possible on repeats.
The key difference is that Cardiff can grow with you into larger, longer-term loans (even SBA loans), whereas PayPal’s repeat loans will still be short term and within their smaller maximums.
1https://cardiff.co/
2https://cardiff.co/business-loans/products/merchant-cash-advance/
3https://cardiff.co/business-loans/products/equipment-leasing/
4https://cardiff.co/business-loans/products/sba-loans/
5https://cardiff.co/business-loans/products/business-cards/
6https://cardiff.co/business-loans/products/line-of-credit/
7https://www.paypal.com/us/business/financial-services/small-business-loan
8https://www.paypal.com/us/workingcapital/
9https://www.paypal.com/workingcapital/faq
10https://cardiff.co/business-loans/
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