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fundbox vs kabbage

Fundbox vs. Kabbage: Who’s the Winner in 2021?

If you are currently looking for an alternative business loan or line of credit, you've probably come across 2 of the biggest names in the industry: Fundbox and Kabbage. Both lenders offer a fast and easy application process, and their eligibility requirements are relatively low. Discover who is better in this Fundbox vs Kabbage comparison.

Key Features:

Fundbox

Kabbage

Loan Options
Bottom line: Fundbox offers more loan options - term loans and line of credit
  • Term Loans
  • Line of Credit
  • Lines of credit
  • Payment services (credit card payment & invoice processing)
Interest Rates and Fees
Bottom line: Fundbox has fewer fees
Interest rates
  • Line of credit: 4.66% for 12-week terms and 8.99% for 24-week terms
  • Loan term: 8.33% for 24-week terms and 18% for 52-week terms
Fees
  • No prepayment, origination, maintenance, or late payment fees
  • Monthly credit line repayment:  1/6th, 1/12th, or 1/18th of the principal, plus fee
  • Monthly maintenance fees: between 1.25%-10.00% of the original principal per month
  • Interest rate - 1.50% to 10.00%
Loan Requirements
Bottom line: both companies have their pros and cons, and generally, offer very generous eligibility criteria
  • Minimum 6 months in business
  • Minimum credit score: 600
  • Minimum annual revenue: $100,000
  • Minimum 12 months in business
  • Minimum recommended credit score: 540
  • Minimum annual revenue: $50,000 or $4,200 monthly revenue during the last three months
Application Process
Bottom line: Fundbox offers a slightly faster application process
Exclusively online, quick, and easy, the application process takes less than 10 minutesOnline, fast application process that takes approximately 10 minutes
Customer support
Bottom line: Funbox has numerous positive reviews for its excellent customer support
Overall, their customer support is highly praised and available by phone, email, or live chatGood support by phone & email, and a comprehensive help center
User Reviews
Bottom line: Fundbox has better ratings and reviews
4.8 rating on Trustpilot. The company enjoys excellent customer reviews for its streamlined application process and reliable customer support4.2 rating on Trustpilot, generally good reviews, especially for the website’s intuitiveness and their debit card option

About Fundbox and Kabbage

What is Fundbox?What is Kabbage?

Funbox was founded in 2013 and is one of the most renowned alternative lenders on the market. The company provides a simple and fast application system that enables you to find out in a few minutes whether you can get a loan or not.

Fundbox uses predictive modeling and big data analytic behind its customer assessment and loan decision-making systems. The company offers both lines of credit and term loans. If your application gets approved, funds can become available even the following business day. 

Kabbage is one of the few lenders in the small business lending industry that offers funding to entrepreneurs with no credit history. The company is famous for supporting borrowers with low credit scores. Kabbage has been on the market since 2008. Last year, in October, Kabbage was acquired by American Express.

Each year, the company enables small businesses to access more than $1 billion in working capital funds. The application process is fast and easy. You can get a decision regarding your application and the related fees and rates within minutes. Besides lines of credit, Kabbage also offers different online payment tools.

Fundbox vs Kabbage: Loan Options

FundboxKabbage
Line of creditTerm LoansLine of creditPayment services
Term Length12-24 weeks24 or 52 weeks6, 12, or 18 monthsN/A
Repayment PeriodWeeklyWeeklyMonthlyN/A
APR Range~20%18%24.00% to 99.00%N/A
Loan AmountMinimum $1,000 – maximum $100,000Minimum $1,000 – maximum $150,000Minimum $1,000 – maximum $250,000N/A

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

FundboxKabbage
NoOrigination FeesNo
NoPrepayment FeesNo
NoMaintenance Fees1.25%-10.00% of the original principal per month
Yes – for term loansLate 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 RatesBetween 1.50% and 10.00%
Discounts available on weekly fees for some holidays and different other special occasions, the discounts are available through couponsDiscount RateDifferent 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

FundboxKabbage
600+Minimum Credit ScoreNone
$100,000Annual Revenue$50,000 (or $4,200 monthly)
6 monthsTime in Business12 months
 Other factors the company takes into consideration include customers’ average monthly revenues and transaction volumeOtherThey 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

FundboxKabbage
600+Minimum Credit ScoreNone
$100,000Annual Revenue$50,000 (or $4,200 monthly)
6 monthsTime in Business12 months
 Other factors the company takes into consideration include customers’ average monthly revenues and transaction volumeOtherThey 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.

Customer Support

Both companies offer good customer support services. Fundbox has a phone number that’s available Monday through Friday from 8 AM to 8 PM ETS. You can also reach out to their support staff by email or from your online dashboard. Moreover, the company integrates social media in its support strategy, so you can direct message them on Twitter. Additionally, a robust help center is also available.

Kabbage does a great customer support job too. It offers a help center, as well as phone and email support.

Bottom line: Fundbox outperforms Kabbage in terms of customer support.

User Reviews

Kabbage generally enjoys positive customer reviews, however, since the pandemic, the company was forced to cut funding, which led to some negative customer reviews. However, the same thing happened to Fundbox and other lenders in their field. Kabbage has a 4 out 5 stars rating with Merchant Maverick and 3.8 stars on Trustpilot.

Fundbox is appreciated for its prompt and knowledgeable support staff and comprehensive help center. The company has an outstanding 4.8 rating on Trustpilot and a 4.5 rating with Merchant Maverick.

Bottom line: Fundbox enjoys better ratings and more positive reviews.

When to Choose Fundbox

You can rely on Fundbox if:

  • You need fast access to a credit line or a loan term
  • You don’t have a very good credit score
  • Your company has only been in business for a few months

When to Choose Kabbage

Kabbage is one of the best choices for:

  • Borrowers with a poor credit score
  • Those who need fast funding
  • Non tech-savvy borrowers who need a fast and intuitive platform

The Bottom Line

Both companies are ideal for customers who have a far from perfect credit score. Their eligibility requirements are low, and the application process is fast and easy. However, Fundbox is the overall winner of our comparison for its excellent support and customer reviews, lower and fewer fees, and the fact that it offers more loan options.

Frequently Asked Questions (FAQ)

  • Is Fundbox legit? Fundbox is a legitimate company you can safely rely on. It has an A+ rating with the Better Business Bureau (BBB) and 4.58 stars out of 5 on their website. The company has helped more than 300,000 small businesses since 2013, the year it was founded.
  • Is Kabbage legit? Kabbage is also a legit and safe company. The platform is secured, and you can rest assured your information will remain confidential. Kabbage was founded in 2008. It has provided more than $1 billion in working capital funds each year. In 2020, the company was acquired by American Express.
  • How long does Fundbox take to process term loans? According to the information on the company’s website, funds can be available as soon as the next day.
  • How to get approved for a Fundbox loan?  It’s not hard to get approved for a Fundbox loan if you have a credit of at least 600, you have been in business for at least 6 months and you meet the minimum revenue requirements.