Cardiff Releases Industry Report Revealing Cost of Delay Exceeds Cost of Capital by 4.3x

Speed-first capital study shows traditional bank financing timelines have become economic liability for prime-rated small businesses

SAN DIEGO–(BUSINESS WIRE)–Cardiff, Inc. (Cardiff), a leading tech-enabled provider of financing for small and mid-sized businesses, today released “The Economic Advantage of Speed-First Capital,” a comprehensive industry report analyzing the hidden costs of traditional lending timelines. The report, based on anonymized loan performance data from Q1-Q4 2025, reveals a fundamental shift in how American small businesses evaluate financing decisions.

Report challenges conventional lending wisdom

The study’s central finding challenges decades of conventional wisdom: for the Composite Organization modeled in the analysis, the Cost of Delay associated with traditional bank underwriting exceeded the Cost of Capital by a factor of 4.3x, resulting in a net positive ROI of 18% when opting for fintech execution speed over lower nominal interest rates.

“We’re witnessing a historic decoupling in the small business lending market,” said William Stern, Founder of Cardiff. “The value of capital is no longer defined solely by its cost; it is defined by its velocity. A low-rate loan that arrives after the opportunity has passed is not an asset; it is an irrelevant statistic.”

The New Prime Migration

The report identifies what Cardiff terms “The New Prime Migration” — 78% of borrowers in the dataset had FICO scores of 700+ and revenue profiles that qualified them for traditional bank financing, yet opted for fintech execution speed. According to the Federal Reserve’s latest Senior Loan Officer Opinion Survey (SLOOS), over 50% of domestic banks have tightened standards for Commercial and Industrial loans to small firms, creating what Cardiff describes as a “liquidity paradox” where creditworthy businesses face unprecedented delays.

Key findings from the report include:

• Traditional commercial bank financing averaged 45-60 days from application to funding, compared to Cardiff’s median time of under eight hours
• Businesses utilizing capital for “Protective Inventory Acquisition” — hedging against potential 2026 tariff impacts — realized risk-adjusted savings of 22% on material costs
• In multiple scenarios analyzed, businesses lost contracts, missed supplier discounts, or forfeited equipment purchases due to bank approval delays
• Cardiff’s automated underwriting engine, leveraging real-time financial data through Plaid integration, delivers decisions in under five minutes

The report includes detailed customer journey mapping comparing traditional bank lending processes with Cardiff’s fintech approach, analyzing 45 distinct touchpoints from application through funding. Real-world case studies demonstrate how businesses used speed as a competitive advantage, from securing government contracts to bulk-purchasing inventory ahead of price increases.

“The data is unambiguous: for time-sensitive opportunities, waiting for approval is the most expensive thing a business owner can do,” said Dean Lyulkin, CEO of Cardiff. “We’ve built our technology stack to eliminate that friction without charging a premium for speed.”

Report available for download

The report comes at a critical moment for American small businesses facing persistent wage pressure, supply chain uncertainty, and forward-looking tariff concerns. Cardiff’s analysis indicates that even if Federal Reserve rates soften, the structural latency of traditional banking renders it ineffective for time-sensitive supply chain hedging and opportunity capture. The full report is available for download at cardiff.co/learn/reports.

For more information about Cardiff and how fast, flexible financing solutions help small businesses nationwide capture opportunities and manage cash flow effectively, visit cardiff.co.

About Cardiff

Cardiff is a leading, digital-first lender serving small and mid-sized businesses across the United States. Since 2004, the company has delivered fast, flexible financing solutions—including SBA loans, merchant cash advances, lines of credit, and equipment financing—to sectors ranging from construction and auto repair to dental practices, restaurants, trucking, and landscaping. With a streamlined online application, near-instant underwriting, and transparent, customized terms, Cardiff has deployed more than $12 billion in capital to help businesses grow on their own terms.

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