BlueVine and Kabbage are leading providers of business lines of credit. Both offer up to $250,000 with expected APRs starting at 18% and six- or 12-month terms. BlueVine requires a minimum of six months in business and $100,000 revenue, while Kabbage requires one year in business, but less in revenue ($50,000).
BlueVine vs Kabbage at a Glance
|Revolving Line of Credit|
|Interest Rate||Starting at 0.8% per |
|Minimum Personal Credit Score of Owners|
|Minimum Time in Business|
|Minimum Annual Revenue|
|Speed to Funding|
When to Use BlueVine
BlueVine was our top pick for small business line of credit provider for 2020. BlueVine’s line of credit product is great for newer businesses that have only been in operation for six months. This is because Kabbage requires at least one year of business operations. Additionally, if you have a need for financing beyond the $250,000 available through their line of credit, BlueVine also provides invoice factoring of up to $5,000,000.
When to Use Kabbage
Kabbage will be a better choice if your business needs a smaller line of credit, as Kabbage is happy to extend credit lines as small as $1,000 to $15,000. A line of credit through Kabbage requires at least one year of business operations, but the annual revenue requirement is much less than BlueVine’s requirement. Kabbage requires that your annual revenues exceed $50,000, or that you have at least $4,200 in monthly revenues for the past three months.
When to Use an Alternative to BlueVine or Kabbage
If you are making a large one-time investment, such as purchasing an expensive piece of equipment, or renovating your business space, you may prefer a short-term loan over a line of credit. A short-term loan with OnDeck allows for repayment terms of up to 36 months, making your payments more affordable.
OnDeck offers small business loans of up to $500,000 at interest rates starting as low as 9% for prime borrowers, and lines of credit up to $100,000 with interest rates starting at 13.99% APR. If you have a credit score of at least 600, one year of business operations, and at least $100,000 in annual revenues, you may qualify for a short-term loan or line of credit from OnDeck. You can apply online and receive funding within one to three days.
How We Evaluated BlueVine vs Kabbage
When comparing BlueVine versus Kabbage, we considered what would be important to you as the small-business owner. Our evaluation was based on how much the financing would cost you, how much funding you could receive, the repayment terms, and what it takes to qualify. Aside from these basics, we also considered the application process, how quickly you can receive funding, their customer service, and what their customers think of the company.
How Financing with BlueVine and Kabbage Works
BlueVine and Kabbage offer business lines of credit. With a line of credit, you are able to borrow up to the maximum amount for which you’re approved. You draw on the line of credit as funds are needed, and as you repay the funds they become available for you to draw again. Interest is only charged on the drawn amount, and so you have some control over how much you pay in interest.
How Financing with BlueVine Works
BlueVine offers a revolving small business line of credit in amounts ranging from $5,000 to $250,000, with repayment terms of either six months or 12 months. BlueVine charges a monthly fee on the amount borrowed, which can start as low as 0.8% per month. As a line of credit, you are able to reborrow the funds again as they are repaid (up to your line of credit amount) without needing to reapply for financing.
How Financing with Kabbage Works
Kabbage offers a small business line of credit in amounts ranging from $2,000 to $250,000. Repayment terms on the line of credit can either be six months or 12 months. Kabbage charges a fixed monthly fee, rather than interest that ranges from 1.5% to 10% of the amount borrowed. On six-month loans, the interest fee is higher in the first two months of repayment, and the first six month on loans with 12 month repayment terms.
With a line of credit from Kabbage, each draw you make on your line of credit creates an individual short-term loan with a six or 12 month repayment period. For example, if you have a line of credit limit of $50,000, and make a $10,000 draw that draw becomes a short-term loan. Your available credit is now $40,000.
BlueVine vs Kabbage: Costs
Both BlueVine and Kabbage have expected APRs in the range of 18% – 86% or greater, and neither company charges additional origination fees or prepayment penalties. While BlueVine’s starting interest rate is 0.8% per month and Kabbage advertises rates ranging from 1.5% – 10%, in terms of costs you will likely receive similar rates from both providers.
BlueVine’s unsecured business line of credit has interest rates starting as low as 0.8% per month (including the draw fees of 1.5% to 2.5% this equates to an APR of roughly 18% – 86%). There are no origination fees, and no prepayment penalties. If you choose to pay by wire transfer there is a $15 fee per payment; however, paying by ACH is free.
If you were to borrow $10,000 from your BlueVine line of credit at the lowest rate of 18% APR, this would equate to an interest charge of $150 per month. With a six month repayment term you can expect a total cost of capital of roughly $900, meaning the total amount you would repay would be $10,900.
Kabbage charges a monthly fee rate of 1.5% – 10% of the outstanding principal amount, this equates to an APR of roughly 18% – 120%. There are no additional fees, and no prepayment penalty with Kabbage; in fact, you can actually save money by paying the borrowed amount off early and avoiding the future monthly fees.
However, it is important to note that fees on your small business line of credit with Kabbage are higher in the first two months (for a six-month term) or first six months (for a 12-month term) on each draw. Therefore, even if you pay the borrowed funds off a month or two early, you will have already incurred and paid the bulk of the interest fees in the earlier months.
BlueVine vs Kabbage: Repayment Terms
Both BlueVine and Kabbage offer unsecured small business lines of credit up to $250,000, with repayment terms of six or 12 months. BlueVine’s minimum loan amount is $5,000, whereas Kabbage can fund loans as low as $2,000. Both providers have monthly payment options (you can also pay weekly with BlueVine), and require a personal guarantee along with a blanket UCC filing.
BlueVine Repayment Terms
BlueVine’s unsecured business line of credit is offered in amounts ranging from $5,000 – $250,000. Repayment terms can either be six months or 12 months, and payments are made either weekly or monthly. BlueVine requires a personal guarantee and a blanket UCC filing as loan security for its unsecured business line of credit, which is typical among similar providers.
Monthly payments are only available for 12 month repayment terms. In order to be eligible for a 12 month repayment term and monthly payments, you will need a credit score of at least 650, and annual revenues of at least $500,000. This is a disadvantage when compared to Kabbage, where all qualified borrowers are eligible for monthly repayment terms.
Blanket UCC liens and personal guarantees are a form of collateral used by the lender. A blanket UCC lien is filed on your business assets, making them subject to forfeiture to the lender in the event you do not repay your loan. A personal guarantee is similar, in that you are agreeing to use your personal assets to repay the loan in the event of default.
Kabbage Repayment Terms
Kabbage offers an unsecured business line of credit ranging from $2,000 to $250,000. Repayment terms can be either six months or 12 months; however, to qualify for a 12 month repayment term, you must borrow more than $10,000. Payments are made monthly. As with BlueVine and other similar lenders, Kabbage requires primary owners to provide a personal guarantee to secure your loan. Plus, Kabbage will take a blanket UCC filing against your business assets as collateral.
Unlike BlueVine, that requires a higher credit score and higher annual revenues to qualify for a 12 month term, Kabbage only requires that you borrow greater than $10,000 to qualify for the longer repayment period.
BlueVine vs Kabbage: Qualifications & Loan Requirements
BlueVine requires a minimum personal credit score of 600 (650 for a 12-month term with BlueVine), while Kabbage requires a minimum credit score of 550. BlueVine has a shorter time in business requirement of six months, compared to Kabbage’s requirement of one year. However, BlueVine requires that your business have annual revenues exceeding $100,000 ($500,000 for a 12-month term), while Kabbage only requires annual revenues of $50,000.
BlueVine Qualifications & Loan Requirements
If your business has been operational for at least six months, is producing annual revenues of at least $100,000, and you have a credit score of 600 or greater, you may qualify for an unsecured business line of credit through BlueVine. To be eligible for a 12 month term you will need to have a credit score of at least 650, and annual revenues of at least $500,000.
To qualify for a 12 month term with BlueVine, you will need to have a credit score of at least 650 and annual revenues of at least $500,000. Comparatively, to get a 12 month term for a line of credit from Kabbage, the only additional requirement the company has is that you borrow over $10,000, making it easier to receive a 12 month term through Kabbage than through BlueVine.
Kabbage Qualifications & Loan Requirements
To qualify for an unsecured small business line of credit with Kabbage you will need to have a credit score of at least 550. Additionally, your business needs to be operational for at least one year, and needs to be generating at least $50,000 in annual revenues.
Kabbage’s minimum credit score requirement of 550 is lower than BlueVine’s minimum credit score requirement of 600. However, Kabbage requires one year of business operations compared to BlueVine’s requirement of six months. Additionally, Kabbage’s annual revenue requirements are lower, at $50,000, than BlueVine’s requirement of $100,000. Kabbage will also consider your business revenues to qualify if you have had revenues of at least $4,200 for the past three months.
BlueVine vs Kabbage: Additional Products & Services
In addition to its line of credit, BlueVine also offers invoice factoring financing. In the event that you may need a line of credit beyond $250,000, invoice factoring can increase your line of credit up to $5,000,000 with qualified invoices.
BlueVine Additional Products & Services
In addition to offering a small business line of credit, BlueVine also offers invoice factoring financing. With invoice factoring, you can receive advances of up to $5,000,000, at rates as low as 0.25% per week. If you need financing above the $250,000 offered in a BlueVine line of credit, you can apply for invoice financing to increase your borrowing amount.
Kabbage Additional Products & Services
Kabbage’s only product offering is their line of credit. However, they will provide you with a link that you can give to your customers in the event that your customers want to apply for funding to pay their invoices to you. This could be helpful to other small businesses that are not aware of Kabbage, and could help you receive faster payment on those invoices.
BlueVine vs Kabbage: Application Process
The application process for both BlueVine and Kabbage is very similar, and both can be completed entirely online. The application process for both lenders can be completed in 10 minutes or less. During the application process for either of these lenders, you will be able to link to your accounting software and bank accounts as a source of the documentation that the lender requires.
BlueVine Application Process
You can complete an application with BlueVine in as little as 10 minutes. The process is quick and easy and can be completed entirely online. You’ll provide basic personal and business information through the online application, and then link your accounting software and bank accounts. By linking your accounts directly to BlueVine, they are able to get accurate and current information about your financial performance to approve your loan. You can receive approval in as little as 20 minutes.
The information that you will need to apply for a BlueVine line of credit is:
- Basic personal information
- Basic business information
- Access to your accounting software
- Access to your bank accounts
Kabbage Application Process
Applying with Kabbage is easy, and be completed in 10 minutes or less. Its application process is entirely online and requires that you provide some basic personal and business information. You will also be instructed as to how to link your bank accounts and accounting software to Kabbage, which will serve to provide the revenue information that the company needs to process your approval.
The information that you will need to apply for a Kabbage line of credit is:
- Basic personal information
- Basic business information
- Access to your accounting software
- Access to your bank accounts
BlueVine vs Kabbage: Speed to Funding
Both BlueVine and Kabbage are fast to fund your unsecured small business line of credit. BlueVine advertises that funding can occur in as quickly as 24 hours from loan approval. Kabbage states that with them, you can receive funding within one to three days of application. Therefore, the time to funding for both providers is roughly the same.
BlueVine vs Kabbage: Customer Service
Borrowers for both BlueVine and Kabbage cite that these companies have exceptional customer service and that their customer service is responsive and friendly. BlueVine offers extended customer service hours, making them easily accessible to borrowers that operate in different time zones. Kabbage offers multiple contact methods for its customer support, including email, phone, and live chat.
BlueVine Reviews vs Kabbage Reviews
Both BlueVine and Kabbage have A+ ratings with the Better Business Bureau. Reviewers cite BlueVine’s customer service and ease of use as key positive aspects of the company. Kabbage customers appreciated the speed of funding and the simplicity of the application process.
Negative BlueVine reviews and Kabbage reviews were primarily based on potential customers that did not qualify, or borrowers feeling that the rates that they were charged were too high. Because both BlueVine and Kabbage are online lenders and have lower minimum qualification requirements than a traditional bank, it should be expected that their rates will be higher than you might get through a more traditional lender.
BlueVine has an A+ rating with the Better Business Bureau. Positive BlueVine reviews came from customers who were impressed with its responsive customer support team. Critical BlueVine reviews came from businesses who were unhappy about being denied financing, or customers that felt that the rates that they were offered were too high.
Kabbage currently has an A+ Better Business Bureau rating. Positive customer reviews cited the funding speed and the minimal paperwork required to apply. Negative Kabbage reviews were primarily customers that were unhappy that their monthly payments were too high. However, given the short-term nature of the repayment period, higher payments should be expected.
Overall, BlueVine and Kabbage offer very similar products, with very similar rates and terms. Both have strong customer service and excellent customer reviews. The primary features that set them apart are their annual revenue and time in business requirements. BlueVine only requires six months of business operations, but requires $100,000 in annual revenues. Whereas, Kabbage requires one year of business operations and $50,000 in annual revenues.
Because BlueVine is able to lend to businesses with only six months of business operations, and has the potential to lend additional funding through invoice factoring, we recommend BlueVine over Kabbage. If you have $100,000 in annual revenues, and a credit score of at least 600, you can qualify. Apply online and receive your business line of credit in one to three days.