LoanBuilder vs Kabbage: Lender Comparison
LoanBuilder and Kabbage are two popular business lenders with very different offers. Both are known for their transparency. They both let you see their pricing calculations before you take out the loan. You can also find much more information on their sites. Their rates are also the same. So, this Loanbuilder vs Kabbage comparison is worthy.
We will look at unique offers from each of these lenders. After that, we’ll delve into the details before sharing our final assessment.
A Glance At The Candidates
LoanBuilder is a PayPal business lending service. They are known for their reputation as a safe and reliable financial services provider. As with PayPal’s other services, LoanBuilder isn’t always the cheapest option. But it’s a simple, transparent service with no strings attached.
LoanBuilder offers a lot of customization and transparency. These factors set them apart from their competition. You can use their LoanBuilder Configurator to get a look at the details of the loan you can build. This will help you know exactly how much you will pay and your repayment schedule before you take the loan.
LoanBuilder offers only business term loans.
Kabbage is a business lender that is equally highly regarded. The company is highly rated by the Better Business Bureau and borrowers. This is mainly due to the company’s simplicity, straightforward service and customer support.
While it’s not the cheapest option, Loan Builder vs Kabbage is one of the fastest and easiest business lenders. “Six Minute Lenders” have used automation since they first entered the business lending industry in 2008.
LoanBuilder vs Kabbage offers two loan products: short-term business loans and business lines of credit.
LoanBuilder vs Kabbage: Which Business Lender is Cheaper?
LoanBuilder charges a “borrowing fee” that works out to 6.49% to 19.31%. The exact rate will depend on their assessment of you and your business. There are no origination or early repayment fees. So, APRs for LoanBuilder loans start at about 7% but can rise to about 20%.
Kabbage has a complex but transparent pricing structure. Their APRs start at 24.99% but can rise to 99%. The exact calculations that go into their rates are too complicated to cover in this LoanBuilder vs Kabbage review. You can see their full calculations system on their website.
LoanBuilder is clearly the cheaper option.
Loanbuilder Cabbage: Which Business Lenders Are More Accessible?
Neither LoanBuilder nor LoanBuilder vs Kabbage have very strict requirements. But there are some quick differences that you need to consider.
The qualifications of a loanbuilder are:
- Minimum annual income of $42,000
- Minimum 9 months in business
- A credit score of at least 550
- See if you qualify for LoanBuilder
Cabbage Qualifications are:
- Annual income of at least $50,000 (or $4,200 for the last 3 months).
- A credit score of 560
- At least three months in business
- See if you qualify for LoanBuilder vs Kabbage
Therefore, Kabba’s requirements are high when it comes to income. Credit score requirements are about the same, with Cabbage being a bit stricter. But LoanBuilder vs Kabbage has a very low bar when it comes to your business experience.
Overall, qualifying with any of these lenders is easy. Both are bound for ease of qualifying.
Loanbuilder vs Kabbage: Which Lender is Faster?
Loanbuilder is a fast business lender. The application process is simple and takes a few minutes to apply. They make the application process particularly easy. But the time it takes to get your funds is not as fast as Kabbage.
After you apply, Cabbage can make a decision within minutes. They also typically disburse funds by the end of the next business day. They are one of the fastest business lenders in the market.
When it comes to speed, LoanBuilder vs Kabbage is the winner.
LoanBuilder vs Kabbage: Which one offers better customer service?
This is a tough category to declare a winner. Both Kabbage and LoanBuilder are very good at customer support.
LoanBuilder offers phone support Monday through Saturday. They can also be easily reached through email or messages on social media. They’re just missing a handy live chat feature, but otherwise offer support across all important channels.
Cabbage is easy to reach by phone or email. He is also very active on social media. It’s always easy to get support from Cabbage. They are also well regarded by consumers on the Better Business Bureau. This means that they are good at solving their customers’ concerns.
Calculation of scores
LoanBuilder is a great PayPal service that offers better rates than LoanBuilder vs Kabbage. It is a great option for many business owners with poor credit scores.
Cabbage is as accessible as LoanBuilder, but its rates are higher. However, LoanBuilder vs Kabbage is a very fast business lender that offers a lot of customer support. If you just need a quick loan, Kabbage is the fastest option.
Kabbage is a good option if you:
- Working capital requires cash.
- Have average personal credit.
- Choose to pay monthly.
Kabbage offers a line of credit, and each draw requires repayment over six, 12 or 18 months. Credit line amounts range from $2,000 to $250,000. (Read our cabbage review.)
Kabbage requires a credit score of at least 640, at least one year in business and a monthly income of at least $3,000.
You also need to have a business checking account or an online payment platform like PayPal or QuickBooks.
Speed: The online application process can take less than 10 minutes. No documents are required, and you will usually get a loan decision within the same day.
Depending on how you receive the cash and how quickly LoanBuilder vs Kabbage can verify your business data and bank account, you may receive funds immediately or within a few days. You can get money faster with an instant transfer to your PayPal account rather than a direct transfer to your bank through your debit card or an automatic deposit to your bank. You can also request a Visa credit card that is linked to your Cabbage line of credit.
Cost: Instead of traditional interest, LoanBuilder vs Kabbage charges a monthly fee based on the term of your loan. Each month, you pay a percentage of the amount borrowed — the principal — plus fees.
The monthly fee is from:
- For six month loans: 0.25%–3.50%.
- For 12-month loans: 0.25%–2.75%.
- For 18-month loans: 0.25%–2.50%.
Best Uses: Cabbage is a good option for obtaining working capital and covering day-to-day expenses, such as payroll and inventory.
OnDeck is a good option if you:
Need quick cash for major expansion or working capital.
Need to borrow more than $150,000.
Are comfortable paying weekly or daily.
OnDeck’s term loans range from $5,000 to $250,000 and provide a lump sum of cash at closing that you make daily or weekly payments for up to 24 months.
Lines of credit go up to $100,000 and are repaid weekly. (Read our OnDeck review.)
Minimum Qualifications: To qualify for a term loan, you must have been in business for at least one year, earn at least $100,000 in annual revenue, have a personal credit score of 625 or higher, and have no personal bankruptcy pending. last two years.
For a line of credit, you need to be the majority owner of the business with a minimum personal credit score of 625. Annual income and time in business requirements are similar to OnDeck’s term loans.
For both products, you will need to sign a personal guarantee. However, unlike OnDeck’s term loans, its line of credit does not require a lien on your business assets.
- Speed: The application process is easy and takes about 10 minutes. You get a loan decision within minutes and get access to same-day funds for loans and immediate access to funds for lines of credit ranging from $1,000 to $10,000. You can apply online or by phone. Learn more about the application process in our OnDeck step-by-step guide.
- Costs: OnDeck’s APR for term loans ranges from 29.9% to 65.9% (based on loans originated in the half-year ending March 31, 2022). These rates include an origination fee of between 2.5% to 4% of the total loan amount. The fee drops to 1.25% to 3% for your second loan and 0% to 3% for all subsequent loans.
There are no prepayment penalties, and OnDeck offers prepayment options that include possible interest rate reductions. Payments are automatically deducted from your business bank account.
OnDeck’s lines of credit have APRs ranging from 29.9% to 65.9% (based on loans originated in the half-year ending March 31, 2022). You pay each individual draw on the line of credit weekly.
Best Uses: OnDeck’s term loans are generally best suited for business owners who need a significant amount of money to purchase equipment, open a new location, hire employees, or make a large inventory purchase. Its lines of credit are a good option for businesses that need working capital or help handling unexpected expenses.