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 owned by American Express, is one of the more well-reviewed lenders in the U.S. However, there are other competitors that offer similar or even better services for small entrepreneurs.
If you are looking for an online lending agency to jumpstart your business, we’ve rounded up five of the best Kabbage competition. We highlighted their services, BBB ratings, and other vital information to help you in your search.
5 Kabbage Alternatives for Small Business Loans
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 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 your money by the next business day.
LendThrive is a sister company of Arizona-based AVANA Capital, which has a BBB rating of A+.
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 earning at least $100,000 in revenue annually.
- Your business has been operating for at least six months.
- You have a business checking account.
- Your credit score is at least 600.
Fundbox has a BBB rating of A+.
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 term loan gives 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+.
BlueVine‘s line of credit product provides a revolving line of credit of up to $250,000 to help qualified small businesses finance purchases and expenses when they need to. The application process for this Kabbage competitor is done online, and an 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.
BlueVine has a BBB rating of A+.
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+.
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 competition mentioned above. You can start with the lender that offers diminishing interest rates as a reward for on-time payments, like LendThrive, to ensure that you have more money in-pocket to sustain your business in these challenging times. Check out LendThrive’s loan calculator to begin.