Compare Small Business Loans
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
- When to Use Kabbage Over Fundbox
- When to Use Fundbox Over Fundbox
- How to Choose Between the Two
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.
|Minimum Age of Business|
|Minimum Annual Revenue||$50,000 in annual revenue|
|Minimum Credit Score||None||None|
|Other Requirements||None||Line of Credit:
|Products Offered||Line of Credit|
|Loan Amount Range||$2,000 - $150,000||$2,000 - $150,000|
|APR Range||20.00% - 80.00%|
|Loan Terms||6 or 12 months|
|Funding Time||As fast as same day||As fast as next business day|
|Apply Now||Apply at Kabbage||Apply 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.