Deciding between Kabbage vs OnDeck depends on the needs of a business. OnDeck offers short-term loans up to $500,000 with a 10% starting APR and repayment terms up to three years, which are ideal for large projects. Kabbage’s lines of credit up to $250,000 with prepayment discounts are better for revolving credit needs.
Best for: Financing large projects
Maximum loan amount: $500,000
Repayment terms: Three to 36 months
Repayment schedule: Daily or weekly
APR range: 10% to 100%
Funding time: Next day
Minimum credit score: 600
Best for: Recurring working capital
Maximum loan amount: $250,000
Repayment terms: 6, 12, or 18 months
Repayment schedule: Monthly
APR range: 24% to 90%
Funding time: Next day
Minimum credit score: 550
Kabbage vs OnDeck at a Glance
*Last Updated: January 2021
How We Evaluated Kabbage vs OnDeck
OnDeck offers larger loans, longer repayment terms, and more working capital options than Kabbage. However, Kabbage has lower qualifications, lower maximum rates, and less frequent payments. When comparing Kabbage vs OnDeck, note that both lenders charge an average 30% to 50% APR, require personal guarantees, have stellar reviews, a mobile app, and offer next-day funding.
The criteria used in our evaluation of Kabbage vs OnDeck include:
- Minimum qualifications: While Kabbage has lower minimum qualifications, OnDeck is not far behind on credit score, time in business, and annual revenue requirements.
- Loan amounts: OnDeck offers a larger short-term loan than Kabbage, but a Kabbage line of credit is revolving.
- Rates and fees: OnDeck has lower rates for prime borrowers, but Kabbage offers a full prepayment discount.
- Repayment terms and schedule: OnDeck offers terms up to 36 months with weekly payments. Kabbage only offer terms up to 18 months but requires monthly payments.
- Application, approval, and funding speed: Both lenders offer a quick online application with same day approval and next day funding.
- Personal guarantee and collateral: Both lenders require a personal guarantee and blanket UCC filing. Kabbage and OnDeck don’t require hard collateral like real estate.
- Reviews: Both lenders received positive reviews from business owners with repeat customers. OnDeck has more reviews available online overall.
- Customer service: Both lenders offer customer support before, during, and after the application process. Borrowers can reach both lenders by phone or email.
- Additional features: Both lenders offer a mobile app for convenience.
When to Use an OnDeck & Kabbage Competitor
One of the top Kabbage and OnDeck competitors is BlueVine. It offers both short-term loans and business lines of credit up to $250,000 with starting APRs of 15%. Business owners can qualify for repayment terms up to one year and weekly or monthly payments. A BlueVine application takes 10 minutes to complete with funding as soon as the same business day.
Kabbage vs OnDeck: Overview
Borrowers seeking low qualifications, monthly payments, a mobile application, and the convenience of a charge card to draw funds should stick with Kabbage. For large loans, low starting rates, long repayment terms, and multiple financing products, OnDeck is the best choice. On average, the lenders are equal regarding rates, approval speeds, personal guarantees, and customer service.
Kabbage vs OnDeck: Minimum Qualifications
Kabbage Line of Credit Qualifications
OnDeck Short-term Loan Qualifications
Minimum Credit Score
Minimum Annual Revenue
Minimum Time in Business
Kabbage has lower minimum qualifications based on credit score, annual revenue, and time in business. Kabbage and OnDeck both require at least one year in business. Kabbage’s line of credit requirements make it more accessible to low revenue businesses and business owners with lower credit.
Kabbage vs OnDeck: Loan Amounts
Kabbage Line of Credit
OnDeck Short-term Loan
$2,000 to $250,000
$5,000 to $500,000
Business owners can qualify to borrow up to $500,000 with OnDeck, which is twice as much funding as Kabbage offers. However, while OnDeck offers more funding, it also does not provide revolving credit, so business owners cannot advance more as they make payments. With Kabbage, business owners can potentially borrow much more than their credit limit over multiple draws.
Kabbage vs OnDeck: Rates, Fees & Prepayment Discounts
Kabbage Line of Credit Costs
OnDeck Short-term Loan Costs
1.5% per month
24% to 90%
10% to 100%
Up to 5%
* Average APRs from Kabbage risk analysts and OnDeck’s annual report
OnDeck offers the lowest starting rate at 9% to prime borrowers, but it also charges an origination fee up to 5% and only offers a partial prepayment discount. Kabbage has a higher starting APR of 24%, doesn’t charge additional fees, and offers a full prepayment discount. So while an OnDeck loan is less expensive, Kabbage’s line of credit is easier to manage and offers more flexibility.
Kabbage vs OnDeck: Repayment Terms & Schedule
Kabbage Line of Credit Terms
OnDeck Loan Terms
6, 12, or 18 months
3 to 36 months
Daily or weekly
OnDeck offers borrowers the most flexible repayment terms, ranging from three to 36 months. This makes it great for financing large projects because with long repayment terms, business owners can make smaller payments. Kabbage offers repayment terms of six, 12, or 18 months and while that’s lower than OnDeck, it also requires less frequent monthly payments.
Kabbage vs OnDeck: Application, Approval & Funding Speed
Kabbage Line of Credit Speed
OnDeck Short-term Loan Speed
Next business day
Next business day
Kabbage and OnDeck both offer a quick online application. Both lenders enable borrowers to apply online and require personal and business details as well as recent bank statements. Both lenders offer an approval decision the same day and funding the next business day. Applicants can upload documents or connect either lender to their business bank account or accounting software.
Kabbage vs OnDeck: Personal Guarantee & Collateral
Both Kabbage and OnDeck require a personal guarantee, which secures the loan with personal assets in the event of default. This is standard practice for business loans without physical collateral like equipment or real estate. Both lenders also place a UCC lien on the business, which secures the loan with business assets.
Kabbage vs OnDeck: Reviews
OnDeck and Kabbage reviews cover similar topics and appear on our site, multiple forums, and other review sites. Kabbage reviews focused on the customer experience, application speeds, and reflected Kabbage’s stance of putting small businesses first. OnDeck reviews noted its transparency, customer service, and convenience.
Kabbage received 5-star ratings on multiple online review sites and an A+ Better Business Bureau rating. Positive reviews note the quick funding speeds, simple application process and low minimum qualifications. Borrowers who did not qualify for funding or received higher than expected rates left negative reviews.
“My contact at Kabbage, Nelson, wanted to understand my business and as a result, was able to represent options to fit my needs. Nelson was friendly, professional, and knowledgeable. The process was fast and efficient. Kabbage is a great resource for small businesses that need additional, non-traditional funding to invest for the future or support ongoing operations during slow periods. I will continue to work with Kabbage going forward.”
— Mark Ranalletti, Fit Small Business Kabbage reviews
OnDeck gets 5-star ratings on multiple online review sites and an A+ rating with the Better Business Bureau. Positive reviews highlighted the quick application speeds, easy funding process, stellar customer service, and a high level of transparency. The negative reviews note low prepayment discounts, high interest rates, and high minimum qualifications.
“OnDeck Capital is the ideal option for small businesses. It offers online loans for startups with big dreams and goals. Its interface is interesting and simple for the user and really gives many credit options when paying. I recommend it.”
— Luis Enrique Alcalá, Fit Small Business OnDeck reviews
Kabbage vs OnDeck: Customer Service
Both Kabbage and OnDeck have great customer service teams. Both lenders offer phone, email, and live chat options for questions. They both also assign each business a dedicated loan specialist to answer questions. Neither lender offers support 24/7, but have generous hours on business days.
Kabbage vs OnDeck: Additional Features
Kabbage and OnDeck offer a mobile app for the convenience of borrowers. Borrowers can manage payments, contact customer service, and request funds on the mobile app of both lenders. Kabbage offers additional features that include a mobile application.
Kabbage Mobile App
The features of the Kabbage mobile app include:
- Overview of loan details: The Kabbage app allows borrowers to see an overview of current loan balances and any transactions made on the account.
- Loan payments: Borrowers can make Kabbage loan payments through the app.
- Apply for a loan: Business owners can submit an application directly through the mobile app. Kabbage is one of the few lenders that offers this feature.
OnDeck Mobile App
The features of the OnDeck mobile app include:
- Single place to manage loans: The app gives an account overview of where borrowers stand on each loan. Business owners can also check the status of all account transactions, including recent and pending loan payments.
- Customer service support: OnDeck provides contact information for an assigned loan specialist and information on contacting the general support department. Borrowers can call or email support from the app.
- Draws on the business line of credit: Borrowers can access and draw funds from an OnDeck business line of credit in the mobile app.
Kabbage vs OnDeck: Loan Originations
The graph below shows how much money each lender has lent. Both companies have originated sufficient loans to establish credibility with small business owners. Overall, small business owners have borrowed twice as much from OnDeck as they have from Kabbage.
Understanding Kabbage & OnDeck Loan Costs
OnDeck and Kabbage are part of a group of lenders who have come together through the Innovative Lending Platform Association (ILPA) to provide a disclosure tool that can help borrowers better understand and compare the true costs of their loans. This disclosure is available after the application process but before borrowers commit to the loan.
SMART Box Capital Comparison Tool
The SMART Box tool helps applicants understand and compare the costs of small business financing. It does this by providing five different ways to measure the cost of the loan so borrowers can compare it to other loan products. SMART Box then defines each measurement (such as APR) in plain English so borrowers can interpret the information.
Here is an example of what the SMART Box disclosures look like:
Overall, the SMART Box tool is a great way to measure loan costs more accurately and to compare those costs against other options. Both OnDeck and Kabbage provide this disclosure after business owners complete an application. Before taking out an online business loan, borrowers should look for the SMART Box disclosure.
Bottom Line: Kabbage vs OnDeck
Small business owners have many short-term working capital options, with OnDeck and Kabbage leading the way. While OnDeck offers a great solution for large projects, Kabbage is the best option for recurring expenses. Business owners who are still undecided can apply with both lenders to compare offers.