Kabbage offers business lines of credit in amounts up to $250,000, with repayment terms of six or 12 months and a fixed monthly fee of 1.5% to 10%. Businesses that need higher funding amounts, or that don’t meet the qualifications for Kabbage, might consider financing with short-term loans or other business financing alternatives.
Top 6 Kabbage Competitors & Alternatives 2020
|Kabbage||Businesses looking for a line of credit up to $250,000|
|OnDeck||Prime borrowers needing short term loans up to $500,000 with 3-year terms|
|BlueVine||Businesses that want to use invoice factoring for financing up to $5 million|
Businesses that want a loan up to $100K with low requirements
|LoanBuilder||Businesses looking for loans up to $500K with terms up to 52 weeks|
|Payability||Ecommerce businesses in need of financing up to $250,000|
|SmartBiz||Businesses needing up to $350,000 with repayment terms of 10 years|
How Kabbage Works
Kabbage offers a business line of credit rather than a term loan. Line of credit amounts range from $2,000 to $250,000, with repayment terms of either six or 12 months. Kabbage doesn’t charge interest, but rather a fixed monthly fee of 1.5% to 10% of the amount borrowed, resulting in an APR of 30% to 50%.
Kabbage will determine how much to lend you based on how well qualified you are. The more you exceed their minimum credit, annual revenue, and time-in-business qualifications, the higher the line of credit you will be offered. Additionally, because this is a line of credit, you can borrow the funds again and again, as they are repaid without the need to re-apply for funding.
Who Kabbage Is Right For
Kabbage is a good financing choice for businesses that need up to $250,000 and can pay it back within 12 months with monthly payments. If you have recurring working capital needs, and find yourself needing to borrow funds repeatedly to cover slow or seasonal, Kabbage may be a good choice for you.
Kabbage Rates & Fees
With a line of credit from Kabbage, you can expect to have an APR ranging from 30% to 50%. While Kabbage doesn’t charge an interest rate, it does charge a fixed monthly fee ranging from 1.5% to 10% of your borrowed amount. Kabbage does not have any prepayment penalties, so if you decide to pay your loan off early, you can save on the monthly fees.
Kabbage Loan Terms
Kabbage offers small businesses a line of credit ranging from $2,000 to $250,000. Each draw on the line of credit is repayable in either six or 12 months as an installment loan. Each time you draw on the line of credit, a separate installment loan is created with its own loan agreement. You only pay interest on the amounts that you have drawn, and not on the full amount of the line of credit that you were approved for.
To qualify for a line of credit from Kabbage, you will need to have a credit score of 550+, your business needs to have been operational for at least one full year, and it needs to be generating annual revenues in excess of $50,000.
What Kabbage Is Missing
Kabbage only offers a line of credit option, so small business borrowers that are seeking a term loan will likely not be satisfied with this option. Additionally, the maximum repayment term for the Kabbage line of credit is 12 months, which, depending on the amount that you need to borrow, could result in payments that are higher than you can afford.
Kabbage users have given the company mostly positive ratings. Users who gave positive Kabbage reviews shared that its customer service provided clear explanations. Some Kabbage reviews complained about high interest rates and short repayment terms; however, Kabbage discloses its rates and terms upfront. More customer reviews can be read on our Kabbage reviews page!
How to Apply with Kabbage
Prequalifying for a small business line of credit with Kabbage is quick and easy. If you’ve been in business for at least 1 year, are generating $50k+ in annual revenue, and have a credit score greater than 550, you may qualify for a line of credit of up to $250k with Kabbage.
OnDeck: Best Alternative to Kabbage
OnDeck offers small business loans up to $500,000 that can be funded in one to three days. OnDeck has very lenient qualification requirements; if you have at least one year of business operations, generate $100,000+ in annual revenue, and a credit score of 600+, you should qualify. Interest rates start as low as 9.99%.
Who OnDeck Is Right For
OnDeck is a good choice for prime borrowers (those with credit scores of 680+) looking for up to $500,000 in short-term financing. This is because prime borrowers can get interest rates as low as 9.99%. Repayment terms for loans through OnDeck range from three months to 36 months.
OnDeck Rates & Fees
Short-term small business loans through OnDeck have interest rates ranging from 9.99% on the low end to 48.7% on average, as per information reported by OnDeck. Due to the short repayment term with these loans, we expect the effective annual percentage rate to range between 30% and 50%. Additionally, OnDeck charges its borrowers a loan origination fee that varies between 0% and 4% of the loan amount you receive.
The expected APR for both a Kabbage line of credit and a short-term loan through OnDeck fall within the same range of 30% to 50%. Additionally, there are no prepayment penalties for either a short-term loan from OnDeck or a line of credit from Kabbage.
OnDeck Loan Terms
OnDeck offers business loans in amounts ranging from $5,000 to $500,000, with repayment terms of three to 36 months. OnDeck requires that payments are made either daily or weekly until the loan is repaid. There are no prepayment penalties on OnDeck loans, so there are no additional fees for paying your loan off early.
With repayment terms of three to 36 months, a loan from OnDeck may allow you the advantage of having a longer amount of time to repay the funds that you borrowed. Additionally, a loan through OnDeck could be especially beneficial if you need to borrow more than the $250,000 that is available through Kabbage, as OnDeck provides short-term loans up to $500,000.
To qualify for a loan with OnDeck, your business needs to have been operational for at least one year and generating $100,000+ in annual revenues. Additionally, you will need to have a credit score of at least 600+. The more qualified you are, the better the interest rates you’ll be offered.
OnDeck has a slightly higher minimum credit score requirement than Kabbage but both require applicants to have at least one year in business. OnDeck requires higher business revenues of $100,000+ annually, whereas Kabbage only requires annual revenues of $50,000 to qualify.
What OnDeck Is Missing
While OnDeck does not charge prepayment penalties if you decide to pay your loan off early, doing so will not save you any money. OnDeck capitalizes the interest charged on your loan upfront, meaning that regardless of whether or not you pay off your loan early, you will still pay the same amount of interest.
OnDeck has generally positive ratings. Users who gave positive OnDeck reviews stated that its professional and friendly customer service made the loan process quick and easy. Users who gave more critical reviews of OnDeck cited that its fees were costly compared to other similar companies. You can read more reviews on our OnDeck loan reviews page!
How to Apply with OnDeck
Getting prequalified online for a short term loan with OnDeck takes just a few minutes. Well qualified borrowers can qualify for $5k – $500K in small business financing with rates as low as 9.9%.
BlueVine: Best Kabbage Competitor with Invoice Factoring
With BlueVine’s invoice factoring product, you can receive funding between $5,000 and $5,000,000, at rates starting as low as 0.25% per week, in as quickly as one day. If you have outstanding customer invoices due within 90 days, a credit score of 530+, and annual revenues of $100,000+, you may qualify.
Who BlueVine Is Right For
If you invoice your customers, BlueVine may be the Kabbage competitor that you are seeking. BlueVine offers invoice factoring as a financing option for your small business, essentially converting your current invoices into cash. If you have invoices that are due within 90 days, invoice factoring is a way to get paid for them upfront.
Invoice factoring allows you to be paid, upfront, for a portion of your unpaid invoices. The factoring company will pay you up to 90% of the value of your invoice, and then pay you the rest (minus their fees) after your customer has paid the invoice in full. With invoice factoring, your customers will make their payments directly to the factoring company, in most cases.
BlueVine Rates & Fees
One of the benefits of invoice factoring with BlueVine is that there is no origination fee charged when you receive financing through invoice factoring. With invoice factoring, you are not charged an interest rate, but rather a discount rate on your invoices. The discount rate that BlueVine charges starts at 0.25% per week.
The discount rate is the percentage of the invoice that you factored that the factoring company keeps as payment for their factoring service. When the invoice is fully paid, and the factoring company pays out the remainder of the holdback percentage, they deduct the discount fee from your final payment on that invoice.
BlueVine Loan Terms
BlueVine offers invoice factoring in amounts ranging from $5,000 to $5,000,000. BlueVine has advance rates between 85% and 90% of the amount of the invoices that are factored. This means that BlueVine will advance between 85% and 90% of the factored invoices upfront, and the remainder will be paid to you when your customer pays the invoice.
To qualify for invoice factoring with BlueVine, you need to have a credit score of 530+, outstanding customer invoices that are due within 90 days, and a three- to six-month demonstrated history of successfully invoicing customers. Because payment is deducted from your paid invoices, it’s important that your customers are creditworthy so that invoices are paid in a timely manner.
BlueVine’s minimum qualifications are lower than Kabbage’s. BlueVine only requires a minimum credit score of 530, whereas Kabbage requires 550. While Kabbage requires that your business has been operational for a year, BlueVine requires only three months of invoicing history.
What BlueVine Is Missing
Because invoice factoring with BlueVine requires that you have business-to-business invoices to borrow against, it may limit the amount that you are eligible to borrow, especially if your business doesn’t rely heavily on invoicing. However, BlueVine also offers a small business line of credit with funding of up to $250,000 with similar qualification requirements.
We considered BlueVine reviews by users from around the web, and determined that BlueVine generally has positive ratings. Positive BlueVine reviews came from customers who were impressed with its helpful customer support team. Critical BlueVine reviews came from businesses that were unhappy that they were denied financing. Read more reviews on our BlueVine reviews page!
How to Apply with BlueVine
You can apply for invoice factoring in amounts ranging from $5,000 – $5,000,000, in 10 minutes or less, with BlueVine via its online application. When approved, you can get funded as soon as the next day. The total time from the start of your application to funding is typically one to three days.
Fundbox: Best Kabbage Competitor with Low Minimum Requirements
Fundbox is an alternative lender that offers a line of credit up to $100,000. The repayment terms on Fundbox’s loans vary from 12 to 24 weeks. Discount rates start at 4.66% per month. Fundbox requires a 500 minimum credit score, making it possible for many businesses to qualify.
Who Fundbox Is Right For
Fundbox has a low minimum credit score requirement, making it a good choice for borrowers with less than favorable credit. Additionally, Fundbox only requires three months of business operations, making it easier for newer businesses to qualify.
Fundbox Rates & Fees
With a line of credit from Fundbox, you can expect to pay a fee starting at 4.66% of the draw you make. This is the fee that Fundbox charges you for allowing access to credit, but it’s only charged while the debt is outstanding.
Depending on the rate that you receive through Fundbox, the expected APR may be more or less than what you might receive through Kabbage. Fundbox has a wide APR range, from 10% to 79%, which they confirmed with us directly. The majority of Fundbox borrowers will likely receive an APR of 30% to 50%, which falls in line with the expected APR for several of the others, including Kabbage and OnDeck.
Fundbox Loan Terms
Fundbox offers lines of credit in amounts ranging from $1,000 to $100,000. Fundbox also offers the advantage of an advance rate of up to 100% of the invoice value (less the discount rate), and doesn’t require a holdback percentage. The repayment term for invoice financing ranges from 12 to 24 weeks, and payments are collected weekly.
The maximum amount that Fundbox will lend caps out at $100,000, while Kabbage can potentially provide up to $250,000 in funding. Additionally, while a line of credit from Kabbage offers a repayment term of either six or 12 months, the longest repayment term extended with invoice financing through Fundbox is 24 weeks.
Fundbox has lenient loan qualification requirements. There is a low minimum credit score requirement, meaning that Fundbox may be more willing than other companies to overlook a low credit score if you have other offsetting factors, such as positive revenue trends. If your business has been operational for longer than three months and you have at least $50,000 in annual revenue you may be able to qualify.
What Fundbox Is Missing
The maximum loan amount through Fundbox tops out at $100,000, which could be limiting to some borrowers. Businesses that need funding over $100,000 would likely find that Kabbage or another Kabbage alternative is a better borrowing option for them.
We evaluated Fundbox reviews from our site and the web. Overall, Fundbox has generally positive ratings. Users that gave positive reviews indicated that the company’s helpful customer service team made the process easy. Critical user reviews came from users who wished they could change to longer repayment terms. Read more on our Fundbox reviews page!
How to Apply with Fundbox
You can apply for invoice financing, in amounts ranging from $1,000 – $100,000, with Fundbox through its online application in less than 10 minutes. Once you’ve connected Fundbox to your bank accounts or accounting software, you can be approved the same day and funded within 24 hours.
LoanBuilder: Best Kabbage Competitor for Customized Repayment Terms
LoanBuilder offers short-term loans up to $500,000 at interest rates ranging from 2.9% to 18.72%. LoanBuilder allows you to customize your repayment terms, which can range from 13 to 52 weeks. To qualify, you will need a credit score of 550+, nine months of business operations, and $42,000+ in annual business revenues.
Who LoanBuilder Is Right For
LoanBuilder is a good financing option for small businesses in need of loans up to $500,000, as well as those who want the flexibility to be able to customize their repayment terms within a range of 13 to 52 weeks to meet their cash flow needs. Another perk: LoanBuilder’s pricing is transparent, without any hidden fees.
LoanBuilder Rates & Fees
LoanBuilder’s interest rates on their loans range from 2.9% to 18.72%. Your total interest charge on your loan is determined at the time your loan is issued, and is based on your agreed upon repayment terms. While there are no prepayment penalties with LoanBuilder, you won’t realize any savings by paying your loan off early.
Despite the different type of fee charged by Kabbage, which is a monthly fee of 1.5% to 10%, and LoanBuilder, which charges an interest rate of 2.9% to 18.72%, both have similar expected APRs. With both LoanBuilder and Kabbage, you can anticipate an APR in the range of 30% to 50%.
LoanBuilder Loan Terms
LoanBuilder offers loans in amounts ranging from $5,000 to $500,000. You chose the length of your repayment term that works for you, in the range of 13 to 52 weeks. LoanBuilder requires weekly payments until the account is paid in full.
While both LoanBuilder and Kabbage have the same maximum repayment term of one year, LoanBuilder offers maximum funding of $500,000, which is double the maximum amount that Kabbage is able to lend.
LoanBuilder has rather lenient qualification requirements when compared to other lenders. If your business has been operational for at least nine months, is producing annual revenues in excess of $42,000, you have a credit score greater than 550, and your business has not filed for bankruptcy, you can qualify for a loan through LoanBuilder.
While LoanBuilder and Kabbage both have the same minimum credit score requirement of 550, LoanBuilder is more lenient when it comes to time in business and annual revenue. Kabbage requires a full year of business operations and $100,000 in annual revenues, but with LoanBuilder, you only need to be in business for nine months with annual revenues of $42,000.
What LoanBuilder Is Missing
LoanBuilder’s maximum term is only 52 weeks. If you need longer to repay your loan, you might be better choosing another option. Also, there is no benefit prepaying you loan; because your interest payment is fixed when you set the term, the total repayment remains the same regardless of when you pay the loan off.
We compiled LoanBuilder user reviews from around the web, and found that LoanBuilder generally has positive ratings. Customers who provided positive LoanBuilder reviews shared that its process was quick and efficient. Negative reviews of LoanBuilder said its pricing was too expensive. You can decide for yourself by reading more reviews on our LoanBuilder reviews page!
How to Apply with LoanBuilder
You can apply for a small business line of credit up to $500,000 with LoanBuilder through its loan configurator in about 10 minutes. If approved, your rates and terms will be customized to fit your business. You can expect to make weekly payments for 13 to 52 weeks, with interest rates of approximately 2.9% to 18.72%.
Payability: Best Kabbage Competitor for Ecommerce Businesses
Payability offers ecommerce businesses an instant advance up to $250,000 on their future marketplace receivables, at a discount rate of 0.5% to 1%. Borrower eligibility is based on your marketplace account health and performance, and no credit check is required. You can apply online in a matter of minutes and receive funding the same day.
Who Payability Is Right For
Payability is a financing solution unique to ecommerce businesses. Payability works with a number of ecommerce marketplaces (e.g., Amazon, Etsy). If your marketplace account is healthy, you have eight+ months of sales history, and average at least $7,500 in monthly revenue, you might want to read more about what Payability has to offer.
Payability Rates & Fees
With an instant advance through Payability, you can expect to pay a discount fee of 0.5% to 1% per week on the value of the marketplace receivables that were advanced. This is what Payability charges you for allowing you access to your marketplace receivable funds that you have not yet received from your customer(s).
The rates and fees that you can expect with invoice financing through Payability are:
- Discount Rate: 0.5 to 1% per week
- Expected APR: 26% to 52%
- Origination Fee: None
- Prepayment Penalty: None
The expected APR for both Kabbage and Payability fall within similar ranges, with Payability’s expected APR ranging from 26% to 52%, and Kabbage’s expected APR ranging from 30% to 50%. While Payability charges a discount rate of 0.5% to 1% per week, Kabbage charges a monthly fee of 1.5% to 10%.
Payability Loan Terms
Payability offers ecommerce businesses an instant advance of up to $250,000 on their future marketplace receivables. Payability advances the funds and then collects payment via your marketplace balance throughout the term of the loan, or until full repayment is made, whichever comes first. The maximum repayment term on a Payability advance is 20 weeks.
The standard loan terms that you can expect with an instant advance from Payability are:
- Loan Amount: Up to $250,000
- Repayment Term: 20 weeks
Both Payability and Kabbage offer funding of up to $250,000 for qualified borrowers. However, Kabbage’s repayment terms of six or 12 months allow businesses a longer time to repay those funds than the 20 weeks offered by Payability.
If you are an ecommerce seller in one of Payability’s partnering marketplaces, have eight+ months of ecommerce sales history, and are generating $7,500 or more in monthly revenues, you could qualify for an instant advance loan from Payability. Payability will verify the health of your marketplace seller account as part of the application process.
The typical qualification requirements for an instant advance from Payability are:
- Credit Score: No minimum requirement
- Time in Business: Eight+ months of ecommerce sales history
- Monthly Revenue: $7,500
Payability has no minimum credit score requirement, which could be advantageous when compared to Kabbage’s minimum requirement of 550. While Kabbage requires a full year of business operations, Payability only requires eight months. Both have similar revenue requirements, with Kabbage requiring $100,000 in annual revenues and Payability requiring $90,000 ($7,500 per month x 12 months).
What Payability Is Missing
While Payability can be a great option for ecommerce-based small businesses, it unfortunately will not benefit those businesses that operate on other platforms. Because Payability financing is limited only to sellers on certain web-based marketplaces, it’s not an option that is available to everyone.
Payability customer reviews are overwhelmingly positive. The vast majority of customers reviewing the company report a positive experience, and that Payability’s customer service is great to work with. Less favorable customer reviews came primarily from customers who had issues with misinterpretation of how Payability operates. You can read more reviews regarding Payability on our Payability reviews page.
How to Apply with Payability
Applying for an instant advance from Payability can be done quickly and easily with their online application. You simply complete the online application, and once approved you can begin drawing your advance the same day.
SmartBiz: Another Kabbage Competitor for Businesses Needing Longer Repayment Terms
SmartBiz is our recommended SBA loan provider for SBA loans under $350,000. Their initial online application process takes just a few minutes and can fund within 30 days. SBA loan rates range from 7.5% to 11%, with repayment periods of up to 10 years for inventory and working capital, and 25 years for real estate.
Who SmartBiz Is Right For
SBA loans through SmartBiz are good for prime borrowers (680+ credit score) with long-term capital needs and who don’t need immediate funding. SBA loans offer the lowest rates and longest repayment terms of any of the Kabbage competitors listed in this article. SmartBiz can fund working capital SBA loans up to $350,000 within 30 days.
SmartBiz Rates & Fees
SBA loans through SmartBiz have maximum interest rates ranging from approximately 7.5% to 11%. Additionally, you’ll be charged a loan origination fee ranging from 0.5% to 3.5% of the loan amount, and a loan packaging fee between $2,000 and $4,000. SBA also charges a loan guarantee fee of 2% to 3.5% of the loan amount.
The typical rates and fees that you can expect with an SBA loan through SmartBiz are:
- Maximum Interest Rates: 7.5% to 11%
- Origination Fee: 0.5% to 3.5%
- Loan Packaging Fee: $2,000 to $4,000
- SBA Guarantee Fee: 2% to 3.5%
SmartBiz Loan Terms
SmartBiz offers SBA working capital loans up to $350,000, with repayment terms up to 10 years (25 years for real estate financing). These are the longest loan terms of any of the Kabbage competitors listed. Additionally, unlike short-term loans through OnDeck and LoanBuilder, SmartBiz loans are repaid through monthly payments rather than daily or weekly.
The standard loan terms for an SBA loan for working capital through SmartBiz are:
- Loan Amount: Up to $350,000
- Repayment Terms: Up to 10 years
- Repayment Cycle: Monthly
An SBA loan through SmartBiz offers the opportunity for a higher loan amount, up to $350,000, compared to Kabbage’s maximum of $250,000. Furthermore, with an SBA loan through SmartBiz, you can get a maximum loan term of up to ten years, which is significantly greater than the six- or 12-month terms available through Kabbage.
SBA loans have much more restrictive qualifications than many of the alternatives listed in this article. To qualify for an SBA loan with SmartBiz, you need to have a credit score of 680+ and a debt service coverage ratio of 1.25+. These loans do require collateral, as well as down payment of 10% to 20%.
The standard qualification requirements for an SBA loan through SmartBiz are:
- Credit Score: 680+ (check your credit score for free)
- Debt Service Coverage Ratio: 1.25+
- Collateral: The loan may not need to be 100% collateralized, but will require some collateral
- Down Payment: 10% to 20% if you’re starting a new business or are acquiring a business or real estate
Qualifying for an SBA loan through SmartBiz is more difficult than qualifying for a Kabbage line of credit. You’ll need to have a much higher credit score, 680 as opposed to 550, as well as collateral and potentially a down payment. Qualifying for a Kabbage line of credit will likely be easier for less established businesses.
What SmartBiz Is Missing
While an SBA loan with SmartBiz offers the lowest interest rates and longest repayment terms, it does take much longer than our other Kabbage competitors to get funded. Many of the Kabbage competitors listed here can provide funding in a matter of a few days; a loan with SmartBiz can take up to 30 days.
Overall SmartBiz has primarily positive ratings. Customers who gave SmartBiz positive feedback said that getting an SBA loan through SmartBiz is much faster than applying directly through a traditional bank. Critical reviewers said that the amount of paperwork required is almost the same as with traditional banks. Read more reviews on our SmartBiz reviews page!
How to Apply with SmartBiz
With SmartBiz, you don’t need to deal with any complicated SBA forms, as they take care of that for you. The online prequalification process for SBA loans up to $350,000 is quick and simple, and takes only minutes to complete. Your SBA loan can be funded in as quickly as 30 days or less.
Kabbage provides small businesses with line of credit financing up to $250,000. Kabbage is a great option for businesses that are looking for a credit line, but the short repayment terms may not be what you had in mind. However, there are Kabbage competitors that may have the financing solution that meets your needs.
For small business owners looking for an immediate working capital loan, OnDeck is a good option. With OnDeck, you need a 600+ credit score, can get approved for up $500,000, and receive funding in as little as one business day.