Kabbage vs. Fundbox: Which Lender Is Better for Your Small Business?

Kabbage vs. Fundbox: Which Lender Is Better for Your Small Business?

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If you’ve been weighing your options between Kabbage and Fundbox, we’ve done the research for you. In general, we recommend Kabbage for larger lines of credit, longer terms and borrowers who want a monthly payment reschedule. We recommend Fundbox for smaller or newer businesses or borrowers that want an invoice financing solution.

Kabbage vs. Fundbox Summary

We recommend Kabbage for businesses that want a larger line of credit or a more traditional lending experience with longer terms and a monthly repayment reschedule. In contrast, we like Fundbox for smaller or newer businesses or businesses that have regular unpaid invoices they want to make more liquid.

Better for
  • Larger line of credit
  • Longer terms
  • Monthly repayment schedule
  • Lower revenue businesses
  • Newer businesses
  • Advancing unpaid invoices
Minimum Age of Business
  • Minimum annual revenue: $50,000
  • Minimum time in business: 1 year (3 years for lines up to $150,000)
  • Invoice Financing: 3 months
  • Line of Credit: 3 months
Minimum Annual Revenue$50,000 in annual revenue
  • Invoice Financing: N/A
  • Line of Credit: $50,000 in annual revenue
Minimum Credit ScoreNoneNone
Personal GuaranteeNoNo
Other RequirementsNoneLine of Credit:
  • Minimum annual revenue: $50,000
  • Minimum time in business: 3 months
  • Average daily bank account balance of at least $500
  • No bankruptcies in last 2 years
  • Fewer than 9 days in a month of negative balances
  • Less than 5% of debit transactions as NSF
Products OfferedLine of Credit
  • Invoice Financing
  • Line of Credit
Loan Amount Range$2,000 - $250,000$2,000 - $250,000
APR Range20.00% - 80.00%
  • 13.00% - 60.00%
  • 15.00% - 59.00%
Loan Terms6, 12 or 18 months
  • 12 or 24 weeks
  • 12 weeks
Repayment OptionsMonthlyWeekly
Prepayment Penalty
  • Monthly fee rate: 1.5-10.0%
  • No origination fee
  • No prepayment penalty
  • Weekly fee: 0.5-0.8%
  • No prepayment penalty
Funding TimeAs fast as same dayAs fast as next business day
Apply NowApply at KabbageApply at Fundbox

When to Use Kabbage Over Fundbox

Kabbage may be a better option than Fundbox if:

  • You want a line of credit over $100,000
  • You want longer terms up to one year
  • You prefer a monthly repayment schedule

We recommend Kabbage over Fundbox for business owners that want a line of credit above $100,000, as Kabbage extends lines of credit up to $150,000. However, to qualify for more than $100,000 at Kabbage, you’ll need to meet stricter time in business and revenue requirements (there are no credit score requirements at Kabbage regardless of how much you want to borrow). You’ll need to be in business at least three years with $500,000 in annual revenue to have a shot at being approved. If you want $100,000 or less, Kabbage only requires one year in business with $50,000 in annual revenue, though businesses with higher revenue and sustained profitability will have a greater chance of being approved.

If you’re looking for a more traditional lending experience, we’d also suggest you consider Kabbage. Kabbage offers longer terms than Fundbox, allowing you to repay your line of credit over six or 12 months, whereas a Fundbox line of credit comes with much shorter terms of 12 weeks. And while most online lenders, like Fundbox, require daily or weekly repayment, Kabbage sticks to a conventional monthly repayment schedule, which is also standard for traditional bank or credit union loans.

When to Use Fundbox Over Kabbage

Fundbox may be a better option than Kabbage if:

  • Your business has lower revenue or is less than one year old
  • You want to turn your unpaid invoices into cash more quickly

For businesses that cannot meet the time in business or revenue requirements at Kabbage, Fundbox offers a very comparable line of credit product with slightly lower rates. To qualify at Fundbox, your business will need to be at least three to six months old, depending on the type of financing you’re applying for. While there is no revenue requirement for invoice financing, your business will need $25,000 in annual revenue to qualify for the line of credit (additional requirements apply). To improve your chances of getting approved, we recommend borrowers be in business at least nine months with $100,000 in annual revenue and demonstrated profitability.

Fundbox also provides advances on unpaid invoices, so it’s a great option if you’re looking to cover cash flow gaps from your accounts receivable. Invoice financing at Fundbox works differently than a traditional invoice factoring solution, instead being more similar to a line of credit. At Fundbox, you will receive a 100% advance on your unpaid invoice, and instead of having your customer repay Fundbox when the invoice is due, you will repay over the invoice 12 or 24 weeks. If you choose to finance invoices through Fundbox, you can be approved for a total line of credit up to $100,000.

How to Choose Between Kabbage and Fundbox

Both companies offer similar line of credit products; yet, the requirements needed to qualify are a bit different. Kabbage has higher time in business and revenue requirements than Fundbox, but you can also apply for up to $150,000. On the other hand, Fundbox has a slightly lower range of rates, so you may get a lower rate if you have a high credit score. However, the maximum amount you can borrow through Fundbox is only $100,000. You can also apply to advance unpaid invoices through Fundbox -- something Kabbage does not offer.

We recommend borrowers consider how much they need and where they have the highest chance of getting approved and receiving a competitive rate. While meeting the minimum criteria is necessary to even qualify, lenders will frequently look for borrowers who fit much higher qualifications. For instance, while you need $25,000 in annual revenue to qualify for a Fundbox line of credit, the ideal Fundbox borrower will have annual business revenue of at least $100,000 and will have a profitable company. In short, you want to make it easy for lenders to approve your loan application, and you can do this by having good or improving personal credit, growing your sales and revenue and showing profitability.

Justin is a Sr. Research Analyst at ValuePenguin, focusing on small business lending. He was a corporate strategy associate at IBM.

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