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.
OnDeck: Best Short-term Business Loan
OnDeck is best for large projects like renovations and expansions. It offers up to $500,000 in funding, with a 10% starting APR and weekly payments for up to three years. It also offers a line of credit up to $100,000. Business owners can apply online in minutes and receive next day funding.
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
Kabbage: Best Business Line of Credit
Kabbage business lines of credit are best for recurring expenses like payroll, inventory, and utilities. It offers revolving financing, so borrowers can use it multiple times and draw funds as needed. It requires a 550 minimum credit score, offers up to $250,000 in funding, and business owners can qualify online in minutes.
Maximum Loan Amount: $250,000
Repayment Terms: Six, 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
Maximum Loan Amount
3 to 36 months
6, 12, or 18 months
Daily or weekly
10% to 100%
24% to 90%
Minimum Credit Score
*Last Updated: October 2019
Is Kabbage or OnDeck Right for Your Business?
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 includes:
- 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. Borrowers can also receive a Kabbage Card for easy withdrawals from its line of credit.
When to Use OnDeck & Kabbage Competitors
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 has lower overall minimum qualifications based on credit score, annual revenue, and time in business. Kabbage and OnDeck require at least one year in business. However, Kabbage requires $50,000 or more in annual revenue, half as much as OnDeck. It also requires a lower credit score of 550, compared to OnDeck’s 600 minimum.
Kabbage Line of Credit Minimum Qualifications
Kabbage line of credit minimum qualifications include:
- Credit score: At least 550
- Annual revenue: At least $50,000
- Time in business: At least one year in business
OnDeck Loan Minimum Qualifications
OnDeck short-term loan minimum qualifications include:
- Credit score: At least 600
- Annual revenue: At least $100,000
- Time in business: At least one year in business
Kabbage vs OnDeck: Loan Amounts
Business owners can qualify to borrow up to $500,000 with OnDeck, twice as much as the amount of capital Kabbage can offer. Comparing the lenders based on lines of credit, Kabbage has the best offering, because OnDeck only offers up to $100,000. With revolving credit, business owners can borrow funds repeatedly without reapplying.
Kabbage Line of Credit Amounts
Kabbage line of credit amounts include:
- Revolving business line of credit: $2,000 to $250,000
OnDeck Loan Amounts
OnDeck short-term loan and line of credit amounts include:
- Short-term loan: $5,000 to $500,000
Kabbage vs OnDeck: Rates, Fees & Prepayment Discounts
Short-term loans from online lenders have a higher APR than bank loans. 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 higher starting rates, doesn’t charge additional fees, and offers a full prepayment discount.
Kabbage Loan Rates, Fees & Prepayment Discounts
Kabbage loan rates, fees, and prepayment discounts include:
- Starting rates: 1.5% per month
- APR range: 24% to 90%
- Average APR: 40% reported by internal Kabbage risk analysts
- Origination fees: None
- Additional fees: None
- Prepayment discount: Full discount of the remaining interest
Kabbage charges interest monthly. Its monthly rates start as high as 10%, but go down to 1.5% after a few months. Six-month loans receive a reduction after two months, and 12-month loans take six months. A $10,000 draw at 3% interest requires monthly interest payments of $300 before the reduction and $150 after.
OnDeck Loan Rates, Fees & Prepayment Discounts
OnDeck loan rates, fees, and prepayment discounts include:
- Starting rates: 9%
- APR range: 10% to 100%
- Average APR: 48.7% as of June 2018 based on OnDeck’s annual report
- Origination fees: Up to 5%
- Additional fees: None
- Prepayment discount: Up to 25% of the remaining interest
OnDeck applies its rate to the loan amount at origination. Borrowers that qualify to borrow $10,000 at a rate of 10% will owe $11,000 for the loan. OnDeck deducts the origination fee at funding, so borrowers that receive the same loan with a 2% origination fee will receive $9,800.
Kabbage vs OnDeck: Repayment Term & Schedule
OnDeck offers borrowers the most flexible repayment terms, ranging from three to 36 months. This makes it great for large projects and businesses needing small payments over a long period. 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 Loan Repayment Term & Schedule
Kabbage loan repayment term and schedule include:
- Repayment term: Six, 12, or 18 months
- Repayment schedule: Monthly
OnDeck Loan Repayment Term & Schedule
OnDeck loan repayment term and schedule include:
- Repayment term: Three to 36 months
- Repayment schedule: Daily or weekly
Kabbage vs OnDeck: Application, Approval & Funding Speed
Kabbage and OnDeck offer a quick online application. Both lenders enable borrowers to apply online and require personal and business details, recent bank statements, and funding requirements. Both lenders offer an approval decision the same day and funding the next business day. Applicants can upload documents or connect either lender to a business bank account.
Kabbage Business Loan Application, Approval & Funding Speed
Kabbage loan application, approval, and funding speeds include:
- Application: 10-minute online application
- Approval: Same day
- Funding: Next business day
OnDeck Business Loan Application, Approval & Funding Speed
OnDeck business loan application, approval, and funding speeds include:
- Application: 10-minute online application
- Approval: Same day
- Funding: Next business day
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 stars on multiple online review sites and an A+ Better Business Bureau rating. Positive reviews note the quick funding speeds, simple application process, low minimum qualifications, and the convenience of the Kabbage Card. Borrowers that 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 few 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 who borrowers can chat with in the mobile app.
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 including a mobile application and a Kabbage Card for easy access to its line of credit.
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.
Kabbage allows borrowers to access the revolving line of credit instantly with its Kabbage Card. Accessing funds this way enables business owners to make purchases from vendors who will accept a credit card payment but not a wire transfer, which is the case for most online vendors.
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.
Kabbage vs OnDeck: Understanding 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.
The need for a tool like SMART Box arose because short-term lenders often describe the cost of their loans using something other than APR (the measurement most consumers are familiar with). They do this because short-term loans almost always have higher APRs than long-term loans. The results were confusing, irregular measurements that left business owners in the dark.
How SMART Box Can Help
Some ways the SMART Box can help include:
- Evaluating affordability
- Comparing different loans
- Comparing different financing products
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.
OnDeck & Kabbage Alternatives
Flexible business lines of credit up to $250,000 for recurring, working capital needs
Newer businesses (at least nine months) and businesses needing up to $500,000
Businesses needing up to $100,000 with no minimum credit score required
Ecommerce businesses selling with Amazon, Walmart, and similar marketplaces needing quick access to funds
Companies receiving payments through Square and needing up to $100,000 in financing
Veteran-owned businesses looking for medium-term loans up to $100,000
Business owners with poor credit scores and high credit card revenue
Businesses with a minimum 680 credit score needing long-term financing up to $350,000
Businesses needing a smaller revolving credit line with rewards
When to Apply With BlueVine
BlueVine offers three independent financing products. Invoice factoring based on the value of business invoices, a term loan up to $250,000, and a business line of credit with a minimum credit score of 600. Applicants want to use a fast business loan provider like BlueVine if Kabbage and OnDeck don’t meet their needs.
When to Apply With LoanBuilder
LoanBuilder is a good OnDeck and Kabbage competitor if borrowers need a business loan up to $500,000. It requires businesses to make weekly payments for 13 to 52 weeks on any advances. To qualify, business owners need to carry a 550 or higher credit score and have $42,000 or more in annual revenue.
When to Apply With Fundbox
Fundbox also offers a business line of credit with up to $100,000 in financing and no minimum credit score requirement, with approval dependent on outstanding invoices. It is a good alternative to BlueVine for small businesses that only need up to $100,000.
When to Apply With Payability
Payability is a great OnDeck and Kabbage competitor for ecommerce businesses that sell on marketplaces such as Amazon and Walmart. With Payability, ecommerce businesses can borrow against future or daily marketplace accounts receivables. Borrowers that receive payments through PayPal but don’t qualify with Payability, should consider an alternative like PayPal Working Capital.
When to Apply With Square Capital
Square Capital is a good alternative for businesses that process customer payments through a Square point-of-sale (POS). Applicants could qualify to borrow up to $100,000 in financing through the Square Dashboard. This is a niche-based financing option but could be good for Square users looking for an OnDeck and Kabbage competitor.
When to Apply With StreetShares
StreetShares is an OnDeck and Kabbage competitor that offers loans and lines of credit to veteran-owned businesses and borrowers with stronger credit profiles. Business owners wanting a more affordable loan with a term up to three years and loans up to $250,000 can apply with StreetShares.
When to Apply With National Funding
National Funding offers a merchant cash advance for businesses that collect a lot of revenue by accepting credit card payments. It can be twice as expensive as other online lenders, but business owners with poor credit will find it’s a good alternative to borrow up to $250,000. National Funding also offers term loans and equipment financing options to businesses.
When to Apply With SmartBiz
SmartBiz offers fast SBA loans up to $350,000 for working capital. Terms extend up to 10 years and rates start at 6.75%. Prime borrowers with at least a 680 credit score and who can wait a month or more for financing will find that SmartBiz SBA loans offer the best long-term financing solution.
When to Apply for Small Business Credit Cards
Borrowers don’t typically consider small business credit cards as Kabbage or OnDeck competitors, but they can be a good alternative solution for a small amount of capital. In fact, the best small business credit cards are great to have in any business’ financial toolkit, regardless of other capital sources.
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.