Fundbox vs Kabbage: Line of Credit
Both Fundbox and Kabbage offer lines of credit with relatively low application requirements. This type of funding can help businesses cover all sorts of working capital necessities such as cash flow issues, inventory, or marketing projects.
- Fundbox: offers lines of credit with terms of 12 to 24 weeks. The repayment is done weekly, and the APR is somewhere around 20%. The minimum amount companies can get is $1,000 and the maximum amount is $100,000.
- Kabbage: offers lines of credit with flexible terms: 6, 12, or 18 months. This payment period is longer than what you get with Fundbx (12-24 weeks). The payment is done monthly and the maximum amount you can get is higher than what many Kabbage competitors, including Fundbox offer - $250,000. However, the APR is also higher and ranges from 24.00% to 99.00%.
Both companies will automatically withdraw the necessary payments from the business bank account you register during the application.
Fundbox vs Kabbage: Short-term Loans
Unlike Kabbage, Fundbox also offers short-term loans. These loans may require you to sign a personal guarantee and a lien on your business. Fundbox applies an interest rate of 8.33% on its 24-week term loans and a rate of 18% for the 52-week terms. There are no prepayment or maintenance fees for their loans, but you might have to pay late payment fees. These fees will be added at the end of your payment plan. The maximum amount you can borrow is $150,000.
Kabbage doesn’t offer other types of loans for businesses, but it provides several useful online payment tools. These products include invoice processing and credit card payment services. The interest rate for this service is 2.25% per card.
| Bottom line: Fundbox offers more loan types compared to Kabbage. |
Fundbox vs Kabbage: Interest Rates and Fees
| Fundbox | | Kabbage |
| No | Origination Fees | No |
| No | Prepayment Fees | No |
| No | Maintenance Fees | 1.25%-10.00% of the original principal per month |
| Yes – for term loans | Late Payment Fees | - $10 for balances less than $100
- $35 for balances between $100 and $5,000
- $100 for balances over $5,000
|
4.66% for 12-week terms and 8.99% for 24-week terms for a line of credit 8.33% for 24-week terms and 18% for 52-week terms for term loans | Interest Rates | Between 1.50% and 10.00% |
| Discounts available on weekly fees for some holidays and different other special occasions, the discounts are available through coupons | Discount Rate | Different discounts through Kabbage coupon codes |
Both companies charge differently, and their fees are calculated as a percentage of the loan you get. Fundbox charges a weekly fee while Kabbage requires monthly payments. If you choose
- Fundbox: for lines of credit or term loans, you will have to pay the following interest rates: 4.66% for 12-week terms and 8.99% for 24-week terms for a line of credit. Loan terms come with a rate of 8.33% for a 24-week term and 18% for 52-week terms. Fundbox doesn’t apply maintenance or prepayment fees.
- Kabbage: doesn’t have lots of fees, but they do apply a maintenance fee of up to 10.00% of the original principal per month and may also apply late payment fees. The interest rates of this lender vary between 1.50% and 10.00%.
In terms of Annual Percentage Rates (APR), both companies are slightly more expensive than traditional lenders. Both lenders apply a transparent policy and will tell you exactly how much interest and what fees you have to pay before each line of credit draw you make. Moreover, you can also get different discount coupons with both of them. Fundbox, for example, offers discounts for weekly fees and special occasions. The company will send you coupons that automatically apply to the next draw fees of your credit line.
| Bottom line: Fundbox seems to apply fewer fees compared to Kabbage. |
Fundbox vs Kabbage: Loan Requirements
| Fundbox | | Kabbage |
| 600+ | Minimum Credit Score | None |
| $100,000 | Annual Revenue | $50,000 (or $4,200 monthly) |
| 6 months | Time in Business | 12 months |
| Other factors the company takes into consideration include customers’ average monthly revenues and transaction volume | Other | They also examine revenue consistency and cash flow |
Fundbox Requirements
Just like many of its competitors, this company has been affected by the Covid-19 Pandemic. As a result, they were technically forced to cut their funding for customers. Kabbage’s situation is not different. However, Fundbox still accepts applications. The main eligibility criteria they apply are a credit score of 600 or above, an annual revenue of at least $100,000, and 6 months in business.
Kabbage Requirements
Kabbage has less strict requirements, being one of the few Fundbox competitors that don’t require a minimum credit score. This lender also accepts borrowers with credit scores in their 500s. The company also requires a very low annual revenue of only $50,000 or $4,200 per month. However, their requirements become stricter when it comes to the minimum time spent in business. Companies need to have been in business for at least one year to be able to apply for a Kabbage line of credit.
| Bottom line: Both companies have flexible eligibility criteria. While Kabbage requires lower credit scores, Fundbox is willing to help companies that have been in business for less than a year, so it’s a tie. |
Loan Application Process
| Fundbox | | Kabbage |
| 600+ | Minimum Credit Score | None |
| $100,000 | Annual Revenue | $50,000 (or $4,200 monthly) |
| 6 months | Time in Business | 12 months |
| Other factors the company takes into consideration include customers’ average monthly revenues and transaction volume | Other | They also examine revenue consistency and cash flow |
Both companies allow you to easily apply for a line of credit online and they use an automated approval process. After you fill in the form on their websites and submit it, which takes approximately 10 minutes, you only need to wait a few minutes more to find out if you got approved. In order to complete your application, you will need to link your business bank account to the platform. After the application is analyzed and approved, both companies might enable you to withdraw money even on the same day or the following business day.
| Bottom line: both lenders offer very fast and easy application processes, however, Fundbox seems slightly faster. |
