5 Kabbage Competitors Offering Amazing Small Business Loans

March 30, 2022

kabbage competition

Capital is a vital piece to the small business puzzle that business owners like yourself must acquire to secure stock, pay for a storefront, or even maintain e-commerce operations.

Kabbage, an online small business lending firm, is one of the more well-reviewed lenders in the U.S. with a wide customer base. However, there are other competitors that offer similar or even better services for small entrepreneurs.

But before we dive into top companies like Kabbage, let’s have a look at some of the frequently asked questions about the company.

Kabbage FAQs

Who owns Kabbage?

Per their website, Kabbage is a subsidiary of American Express Co. and was founded in 2008, but it was not until 2011 that it started providing loans. 

What types of loan products does Kabbage offer?

Kabbage provides funding assistance to small to medium businesses of up to $150,000 through a range of financial products. 

It offers unsecured small business loans such as commercial loans, working capital loans, business credit, inventory loans, professional loans, short-term business loans, and online loans. It also provides secured loan products such as equipment loans, SBA loans, merchant cash loans, and factoring loans. Other offerings include industry-specific loans, veteran loans, and loans for women.

What is the minimum credit score requirement to successfully apply for a Kabbage loan?

To qualify for Kabbage funding, would-be borrowers should have a credit score of 640 and up. Their businesses should also have average annual revenues of at least $50,000 and operate for a minimum of one year. Proving financial health is essential to succeeding with your application, as it shows that your business is capable of meeting payments later on. 

How long does it typically take to get approved?

Kabbage can immediately give approval as long as you meet the eligibility criteria and your identity and financial records have been verified. Once a loan application is completed and an agreement is signed, funds can be sent to your bank account in about three days. The process may take longer if more information is required.

Now that we have a better understanding of why Kabbage is such a popular company for small business loans, let’s take a look at alternative business lenders to Kabbage that might have similar or more attractive offerings. 

If you are looking for an online lending agency to jumpstart your business, we’ve rounded up five of the best Kabbage competitors. We highlighted their services, BBB ratings, and other vital information to help you in your search.

5 Companies Like Kabbage for Small Business Loans

1. LENDTHRIVE

LendThrive leads the list of Kabbage competition, offering one of the most attractive small business loan solutions in the country. Its fixed-rate business loans are designed to help new and growing small businesses get the funding necessary to thrive and succeed. LendThrive’s mission is to help the largely underserved small business community who are either charged excessive interest rates on loans or have limited access to capital.

What makes LendThrive’s loan solution stand out is its Rate Reduction Rewards program which automatically drives the interest rate down as you make consistent on-time payments. Over time, this allows you to set aside more money to fund other business needs. In addition, LendThrive eliminates any penalties for making extra payments or even paying off a loan early.

Here are the criteria to qualify for a small business loan from LendThrive:

  • You are the business owner (or own at least 20%).
  • You have been in business for at least two years and are operating profitably.
  • The business has a healthy cash flow and generates at least $10,000 in sales per month.
  • You have an active bank account.
  • Your credit score is at least 675.

The application process is done online, and it typically takes less than 24 hours for a decision to be made. Once approved and loan documents are executed, you can have access to funds by the next business day.

2. FUNDBOX

Another popular Kabbage competitor is Fundbox, which offers business lines of credit for those who need cash fast. Such types of loans are sought after to address short-term financial situations, like urgent and unplanned purchases or late invoice payments.

Like LendThrive and Kabbage, the application process is done online, and it does not charge a penalty for prepayment. You can apply now and get a credit decision within minutes and, if approved, see your much-needed funds transferred to your account by the next business day.

The qualifications for a business line of credit with Fundbox are:

  • Your business is based in the U.S. and has an average revenue of at least $100,000 annually.
  • Your business has been operating for at least six months.
  • You have a business checking account.
  • Your credit score is at least 600.

3. ONDECK CAPITAL

OnDeck is another Kabbage alternative that caters to small businesses through various loan products. Its line of credit allows you to manage short-term expenses and borrow as much as $100,000 for up to 12 months (which resets every time you make a withdrawal). Meanwhile, its small-business term loans give you access to as much as $250,000 with repayment terms of up to 18 months.

The minimum requirements to be eligible for an OnDeck loan are:

  • Your business should be operating for at least one year and earning $100,000 and higher annually.
  • You have a business bank account.
  • Your credit score is at least 600.

Note that OnDeck does not lend to businesses based in Nevada, South Dakota, and North Dakota.

OnDeck has a BBB rating of A+.

4. BLUEVINE

BlueVine’s line of credit product provides a revolving line of credit of up to $250,000 to help qualified small-business owners finance purchases and expenses whenever they need.

The application process for this Kabbage competitor is done online, and approval can be given within minutes. With a line of credit, you pay no fees to open or maintain your account, and you pay only for the money you use. Repayments are made either weekly or monthly in six or 12 months.

Here are the criteria to qualify for a line of credit with BlueVine:

  • Your business should be operating for at least two years and earning $30,000 per month.
  • Your credit score is at least 650.
  • You have an active bank account and can submit a year-to-date bank statement.

5. HEADWAY CAPITAL

Rounding up our list of Kabbage alternatives is Headway Capital, which offers unsecured business lines of credit assistance for small businesses. The company provides as much as $100,000 in credit, from where you can withdraw whenever you need funds. Repayment terms are either 12 months, 18 months, or 24 months, and you can opt to pay weekly or monthly. It also does not charge anything for early payoffs.

To qualify for a loan, here are the criteria:

  • Your business should be operating for at least one year.
  • It should be earning $50,000 or more annually.

The Headway Capital website does not specify the minimum credit score required, but the safe bet would be at least 600.

Headway Capital has a BBB rating of A+.

*The information about these Kabbage competitors was sourced from each company’s own website.

Find the Right Lender for Your Business Needs

If you need funds to start a new venture, address short-term business needs, or finance your growth plans, it makes the best sense to apply for a loan with any of the Kabbage competitors mentioned above.

You can start with the lender that offers reasonable repayment terms. Another important feature to look for is diminishing interest rates as a reward for on-time payments, like LendThrive’s Rate Reduction Rewards program, to ensure that you have more money in your pocket to sustain your business in these challenging times.

LendThrive provides reliable funding quickly to business owners and entrepreneurs like you. If you are seeking a small business loan, the lending professionals at LendThrive will work with you to provide the funding you need. 

Check out LendThrive’s loan calculator to begin. Apply for a loan today and be approved in as little as 48 hours! You can get funds quickly with LendThrive so you spend less time worrying about funding and more time growing your business.

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