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.
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 | Kabbage | |||
Line of credit | Term Loans | Line of credit | Payment services | |
Term Length | 12-24 weeks | 24 or 52 weeks | 6, 12, or 18 months | N/A |
Repayment Period | Weekly | Weekly | Monthly | N/A |
APR Range | ~20% | 18% | 24.00% to 99.00% | N/A |
Loan Amount | Minimum $1,000 – maximum $100,000 | Minimum $1,000 – maximum $150,000 | Minimum $1,000 – maximum $250,000 | N/A |
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.
Both companies will automatically withdraw the necessary payments from the business bank account you register during the application.
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 | 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 |
|
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
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 | 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 |
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 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. |
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. |
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. |
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. |
You can rely on Fundbox if:
Kabbage is one of the best choices for:
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.