A Comparison Between Fundbox And Kabbage For Smb Loans

A Comparison Between Fundbox and Kabbage for SMB Loans

Many financial companies have specially designed loan options to meet the needs of a small or medium business (SMB). Each loan provider has its unique features and facilities which make them famous in a distinct way.

Among these large number of companies, Kabbage and Fundbox are most preferable choices because they provide quick and affordable financing to SMBs. Sometimes, people get confused while choosing between them due to their exceptional features. So, to understand the difference between their services, one needs to take certain factors into account.

Factors of comparison between Fundbox and Kabbage
There are numerous factors of comparison between these two renowned companies. These factors will help you to choose the best one for yourself. Here are some of them:

Company type
Before choosing any of these loan providers, you should think about your organization’s structure. Fundbox has some exceptional facilities which are best suited to Business to Business (B2B) companies and organizations which have a cloud-based accounting system. Rather than providing a term loan, Fundbox is known to provide the required funds to small and medium businesses. On the other hand, Kabbage is the best option for companies who are looking for short-term loans to get cash urgently.

Age of the business
The age of your business is another important factor. Fundbox is one of the few companies who only check credit line and invoice financing. This loan provider needs a record of 6-months line of credit and 3-months invoice financing for providing funds. However, you need to have a registration for your business. On the other hand, Kabbage requires minimal 1-year business establishment tenure to approve the loan applications of any small or medium business.

Annual revenue
To apply for a loan, the applicant must submit a record of their organization’s annual turnover or revenue. Each finance company asks for this document. Fundbox requires an annual revenue of $25,000 whereas Kabbage needs a minimum turnover of $50,000 for SMBs.

Best feature
Funbox is best suited to low revenue businesses, start-ups, and companies with unpaid invoices. Kabbage is known for providing loans to small and medium-sized organizations which have a long credit line. Moreover, it also offers many facilities like a schedule for monthly repayment and long loan tenure.

Repayment options
One must consider this factor while picking a suitable loan provider for you and your business. Fundbox provides a weekly repayment option while Kabbage offers a monthly repayment scheme.

Approval time
In this case, Kabbage is faster than Funbox. Kabbage approves the loan within 24 hours, but the disbursal may take some additional time. Fundbox usually has delays in approval, and the confirmation might extend up to next day of application. However, once the loan is approved, they disburse the funds quite quickly.

Loan terms
If you are looking for a long-term loan, then you must go for Kabbage because it offers a 12-month loan tenure for repayment. Fundbox only provides a maximum of 24 weeks for repaying the loan.

The maximal loan amount
One needs adequate funds to set up or expand their business. Thus, if you need a significant amount of money for your small or medium-sized company, you should opt for Kabbage. Kabbage lends up to $250,000 while Fundbox only offers a maximum of $100,000 as credit.

Application process
Both Kabbage and Fundbox have an online loan application process. Fundbox allows you to create an account with the required financial and personal details. After the approval, you can receive the funds through eBay, Amazon, PayPal, and more. Kabbage also offers the same facilities, but you have to fill your business account details for receiving the funds in your bank account.

Hence, you must consider these factors while choosing between these two loan providers. Both of them are equally good options for different types of business owners.

Authored by Top10Ratings.com