Guide to the Top Kabbage Competitors of 2022

Updated on September 27, 2022
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Top 5 Kabbage Competitors

We’ve compiled a guide to the five best Kabbage alternatives out there and broken down how they stack up against Kabbage’s line of credit offering.

#1: OnDeck Capital

When you do a quick search for the top Kabbage competitors, the most common alternative you’ll see is OnDeck Capital.

OnDeck is both a line of credit lender and a short-term loan lender, and the OnDeck lines of credit are the closest loans to Kabbage you’ll find on the market.

Lines of credit with OnDeck range from $6,000 to $100,000. OnDeck only offers a repayment period of 12 months once you draw from the line, and at 29.9% to 65.9%(based on loans originated in the half-year ending March 31, 2022), their APRs are more expensive than Kabbage’s.

To qualify with this Kabbage competitor, you’ll need at least a 625 credit score. You’ll also need to prove your annual revenue to be $100,000, and have been in business for a year.

  • Kabbage vs. OnDeck

    While OnDeck offers a very similar product to Kabbage, there are some notable differences.

    First, OnDeck’s maximum line of credit is smaller than what’s available with Kabbage and OnDeck only offers a 12-month repayment period, whereas Kabbage offers 6, 12 or 18 months.

    Instead of traditional interest, Kabbage charges monthly fees depending on your loan’s term:

    • Six-month term: 0.25% to 3.50%
    • 12-month term: 0.25% to 2.75%
    • 18-month term: 0.25% to 2.50%

    OnDeck, on the other hand, uses a traditional interest rate structure. OnDeck also sets a slightly higher threshold for eligibility with annual revenue requirements.

    Check out our full comparison guide to Kabbage vs. OnDeck.

    See If You Qualify

#2: Fundbox

Fundbox is another top Kabbage alternative.

Fundbox offers a business line of credit, similar to the one offered by Kabbage, as well as small-business term loans (only available for select borrowers).

Business owners need a credit score of at least 600 and be in business for at least six months to qualify for a term loan or business line of credit with Fundbox.

  • Kabbage vs. Fundbox

    How does Kabbage compare with Fundbox? Kabbage offers lines of credit up to $250,000, whereas Fundbox will only dole out up to $100,000 at a time.

    But if you’re a startup with under a year in business and you don’t quite reach Kabbage’s minimum monthly revenue requirement ($3,000), Fundbox might be the best Kabbage alternative for you.

    Check out our complete guide to Kabbage vs. Fundbox.

    See If You Qualify

#3: Bluevine

Bluevine also offers a line of credit similar to Kabbage’s line of credit.

Bluevine offers $5,000 to $250,000 in line of credit amounts, repaid weekly or monthly over six or 12 months. The interest rate for Bluevine’s line of credit starts at 15%.

To qualify for Bluevine’s line of credit product, you’ll need a personal credit score of at least 625, monthly revenue of at least $10,000, and at least six months in business under your belt.

  • Kabbage vs. Bluevine

    Both Bluevine and Kabbage offer lines of credit up to $250,000. Kabbage has a longer repayment periods, 6, 12 or 18 months, whereas Bluevine only offers up to 12 months. Instead of traditional interest, Kabbage charges monthly fees depending on your loan’s term:

    • Six-month term: 0.25% to 3.50%
    • 12-month term: 0.25% to 2.75%
    • 18-month term: 0.25% to 2.50%

    Kabbage also has a higher personal credit score requirement, 640, compared to Bluevine’s 625—as well as a longer time in business requirement, one year compared to six months. Bluevine requires a higher annual revenue, however, $120,000 compared to $36,000 (or a monthly revenue of $3,000).

    See If You Qualify

#4: Accion Opportunity Fund

Opportunity Fund joined forces with Accion, another microlender, to offer small-business term loans of up to $100,000 with interest rates starting at 5.99%. The nonprofit lender also offers coaching and mentoring for business owners.

You need at least 12 months in business and an annual revenue of at least $50,000 to qualify for a business loan. But Accion Opportunity Fund doesn’t have a minimum credit score to qualify, making it a good option for business owners who have a low credit score or minimal credit history.

  • Kabbage vs. Accion Opportunity Fund

    Accion Opportunity Fund offers term loans rather than lines of credit, but there are some common features and requirements to Kabbage.

    Both lenders cater to businesses with a challenged credit history. Time in business and revenue requirements for Accion Opportunity Fund are 12 months and $50,000 per year, while Kabbage has the same time requirement but a more lenient revenue requirement of $3,000 per month.

    Kabbage lines of credit offers a wider range of loans—as small as $2,000 and as large as $250,000, while Opportunity Fund’s lending ranges from $5,000 to $100,000.

    While Kabbage offers fixed repayment terms of six, 12, or 18 months, Opportunity Fund customizes repayment terms based on your business needs. Also, instead of traditional interest, Kabbage charges monthly fees depending on your loan’s term:

    • Six-month term: 0.25% to 3.50%
    • 12-month term: 0.25% to 2.75%
    • 18-month term: 0.25% to 2.50%

    See If You Qualify

#5: Headway Capital

Headway Capital offers a truly revolving line of credit, providing a range of $5,000 to $100,000 in credit lines. Once you draw from the funds, repayment terms are set at 12, 18, or 24 months.

APRs can get expensive (as with all the Kabbage competitors), ranging from 40% to 80%. The median Headway interest rate is 52%.

Qualifying, however, is pretty easy. Headway Capital works with businesses that have at least one year in operation. As for annual revenue, Headway Capital requires at least $50,000 or equivalent pacing. If you fund with a Headway Capital line of credit and withdraw funds, you’ll pay back these funds with either a weekly or monthly repayment schedule.

  • Kabbage vs. Headway Capital

    The lowest APR with Headway is pretty high, and more qualified borrowers might get a lower interest rate with Kabbage.

    It’s also important to note that Headway Capital charges a draw fee of up to 2% of the amount drawn each time you dip into your line of credit. That can really add up if you tap into your line of credit often.

    One benefit of Headway, however, is that they tend to have more comfortable repayment schedules. The maximum term of 24 months is longer than Kabbage’s, and you can pay back with either weekly or monthly repayments.

    See If You Qualify

How Does Kabbage Work?

Kabbage is an alternative, non-bank lender providing short-term lines of credit to small business owners who don’t typically qualify for traditional bank financing.

Compared to longer-time lines of credit that you might find at a bank, short-term lines of credit like Kabbage offers, are structured similarly but are different in a few key ways:

Kabbage lines of credit are smaller, paid back over a tighter time period, and come with generally higher rates.

This means that borrowers with fair credit and relatively new businesses can get funding from Kabbage in just a few short days. But for the service of accessible cash, Kabbage will typically charge higher interest rates.

As you’ve seen with our list of Kabbage competitors, the same goes for other companies like Kabbage, too—if they’re able to fund less-qualified borrowers and do so quickly, then they will likely charge higher interest rates.

The Details on Kabbage Lines of Credit

Now that you’ve got a general idea of how business loans like Kabbage and their competitors work, let’s dig a little into the details on how Kabbage lines of credit are structured to make sure you’ve got a solid understanding of what you’re measuring Kabbage competitors against:

  • Interest Rates

    Instead of traditional interest, Kabbage charges monthly fees depending on your loan’s term:

    • Six-month term: 0.25% to 3.50%
    • 12-month term: 0.25% to 2.75%
    • 18-month term: 0.25% to 2.50%
  • Credit Limits

    When you apply for Kabbage, you’ll get approved for a credit line of up to $250,000, but as small as $2,000. Once you’re funded, you can pull from your line of credit as often as once a day. And as with any line of credit product, Kabbage only charges you interest on the amount you draw from your credit line.

  • Requirements

    Kabbage has a minimum credit score of 640. They’ll look at your personal credit score to determine what you qualify for. They won’t look at your business credit score.

    Kabbage sets a minimum of $3,000 in monthly revenue, and at least 12 months in business.

    Beyond the typical qualifications for business financing, Kabbage will also consider the following: whether you have a minimum average bank balance of $2,500, past bankruptcies and whether they’re cleared, and the number of non-sufficient funds days in the last 90 days from applying.

Should You Seek out a Kabbage Competitor?

Part of deciding whether to go with Kabbage or one of the top Kabbage competitors is to weigh their pros and cons.

So, what are the benefits and the downsides of working with Kabbage?

Here’s what you need to know.

Stick With Kabbage if You Need . . .

Let’s consider the advantages of funding with Kabbage over one of the top five Kabbage competitors.

  • Accessible Funding

    Kabbage is certainly one of the best quick business lenders out there.

    Your line of credit can be funded sometimes the same day you apply (depending on the details of your application).

    Kabbage in part can operate so quickly because they use technology to underwrite your loan, and generally require a very few documents to apply. This means they have very few documents to process.

  • Accessible Funding

    In the world of small business lending, Kabbage is one of the most accessible players.

    They don’t weigh your credit score as heavily as other lenders do. Plus, Kabbage looks at other business data to determine your eligibility. This gives Kabbage a more holistic look into the health of your business, unlike other Kabbage competitors. And in general, the more business accounts you can link to your application, the more business data and information Kabbage can use to underwrite your line of credit. This aspect of working with Kabbage might be appealing for borrowers who don’t qualify for more traditional business financing products.

  • Flexible Funding

    A line of credit in general is a great option for borrowers who need flexibility in their funding. With a line of credit, you’ll have a pool of funds in your back pocket, which you can tap into whenever you want or need to for your business. Kabbage especially gives you flexibility with how often you can draw from the funds—as much as once per day.

    If you have cash flow issues, or run a seasonal business, a line of credit is an especially good option.

Go With a Kabbage Competitor If You Need . . .

Alternatively, you should lean towards funding with one of Kabbage’s competitors if you want to access any of the following advantages:

  • Lower Rates

    If you have strong credit and several years in business, you can probably qualify for a business line of credit with lower rates from a bank.

  • To Build Credit

    Lines of credit are typically a fantastic way to build personal and business credit. Using the line of credit responsibly—drawing and repaying what you owe on time—will help you establish good payment history.

    Using a line of credit to build your credit will help you qualify for lower rate financing products down the road.

    However, Kabbage doesn’t report to either the personal or business credit bureaus—meaning you won’t get credit for your responsible behavior on the credit line.

The Bottom Line

Kabbage offers an accessible line of credit product, but there are a long list of Kabbage competitors out there.

Your best option should always be the product that meets your business’s funding goals at the lowest rate possible.

So before you choose to work with Kabbage or even their competitors, be sure to compare each and every option to see where you can find the lowest rates and best terms.

Meredith Wood
Vice President and Founding Editor at Fundera

Meredith Wood

Meredith Wood is the founding editor of the Fundera Ledger and a vice president at Fundera. She launched the Fundera Ledger in 2014 and has specialized in financial advice for small business owners for almost a decade. Meredith is frequently sought out for her expertise in small business lending. She is a monthly columnist for AllBusiness, and her advice has appeared in the SBA, SCORE, Yahoo, Amex OPEN Forum, Fox Business, American Banker, Small Business Trends, MyCorporation, Small Biz Daily, StartupNation, and more. Email: meredith@fundera.com.
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