TopConsumerReviews.com is a world-leading consumer product review site. We provide detailed reviews and ratings for thousands of products and services.

 

Kabbage vs CAN Capital

We recommend

 

Disclosure: We are not compensated by companies for their reviews, but we may be compensated for links and advertisements on our website. Click here for details.

 

KABBAGE

If you're looking for a modern way to get a business line of credit, Kabbage offers lines from $2,000 to $100,000. An accredited business with the Better Business Bureau since 2014, Kabbage's A+ rating demonstrates that they are a contender in the business loan market.

One unique feature of Kabbage is their use of other online services to verify the creditworthiness of your business: if you sell products on Etsy or receive regular payments from customers via PayPal, for example, you can link to those services to show Kabbage a real-time snapshot of your business data. This is an impressive way to save time often required by other lenders' paperwork processes, such as obtaining and documenting your credit score or sending in bank statements. The signup and application process, including this linked verification, takes only a few minutes; once qualified, you receive instant access to your approved amount.

In order to get a business loan from Kabbage, you will need to meet their minimum requirements:

  • In business for a year or longer
  • More than $50,000/year in revenue

Those requirements do mean that Kabbage would not be suitable for startups or companies within their first year of doing business.

We were impressed by Kabbage's low fees for their business lines of credit: 1.5% to 12%. Loans are paid back either in six months or twelve, and there are no early payment fees. There are no application fees either, making Kabbage one of the most straightforward lending platforms in our review.

We also like Kabbage's dedication to helping small businesses succeed. Their website has a Resources section that includes an up-to-date blog, complimentary Small Business Guides on a variety of topics, and even access to webinars on topics from bookkeeping to hiring.

While Kabbage won't be able to help you if you're looking for funds for your startup, or if you need a loan in excess of $100,000, they are a fantastic, low-fee resource if you have an established business that is doing well overall. Kabbage easily earns a four-star rating.

Visit Site >

CAN CAPITAL

Established in 1998, Georgia-based CAN Capital offers business loans ranging from $2,500 to $150,000 or more with terms from 4-24 months. CAN Capital focuses specifically on small business owners, with tools, resources, and blog posts directed towards helping them to grow their businesses and succeed.

Unfortunately, CAN Capital is not one of the lenders in our review who make business loans to startups: they require borrowers to have been in business for at least four months and have monthly revenue that is relatively stable.

The application process is relatively simple and is comparable to other lenders' in our review: enter basic information about the business, such as the gross monthly sales, number of months or years in business, and the business' location. Once the application is approved, funds can be sent is as little as two business days.

While CAN Capital doesn't publish their APR during any part of quote or application process, there is a calculator that allows prospective borrowers to enter the amount of their monthly sales, the desired loan amount and term, and see the weekday payment, principal amount and the total repayment amount. Of course, this is just an estimate; the final loan offered would naturally depend on the business' history, creditworthiness, and actual loan terms. Customers should make sure to read the fine print: both when we ran our own theoretical scenarios and when we considered CAN Capital's reviews, we saw interest rates around 30%, all the way up to 85%! Given that CAN Capital focuses on small businesses, particularly those who haven't been able to qualify for a traditional loan, we wonder if such high interest rates will actually help a business to succeed instead of being overburdened with (additional) debt.

Another possible downside of having a business loan with CAN Capital is the effect on one's personal credit; one customer complained that CAN Capital pulled a hard inquiry on their personal credit every six months for the duration of their loan, even though the customer had no late payments or any other issues with the loan.

On the other hand, CAN Capital has been accredited with the Better Business Bureau since 1998 and carries an A+ rating. In our opinion, this carries a great deal of weight and would indicate that, overall, CAN Capital is doing a good job of providing loans to almost 140,000 small businesses in ways that are honest and trustworthy.

Visit Site >


Business Loans

To help you find the Best Business Loans, TopConsumerReviews.com provides you with an in-depth comparison of Kabbage and CAN Capital.

With all the difficulties in today's economy, many people are choosing to open their own business instead of working for a traditional employer. Whether you're just starting your business, expanding your already-established business, or even hanging out a shingle as an online company, it's likely that at some point you'll need a business loan to successfully meet your customer's needs and your business goals.

In the past, small business owners relied heavily on traditional brick-and-mortar banks in order to finance their business loans. Often that meant that borrowers had to rely on their own reputation and relationship with their local bank. Getting the lowest possible interest rate was also more challenging, since there were few lending options from which to choose.

Fortunately, business owners today can choose among many lenders to find the best terms and interest rates available. In addition to the old local options, small business borrowers now have much more and better choices through various lenders on the Internet that specialize in small business loans.

There are many factors that you should consider before selecting a lender for your business loan. Some of these include:

  • Loan size and rate. How much will you be allowed to borrow? What interest rates do they typically offer on loans of that size?
  • Loan application process. When applying for your business loan, can it be completed online? Is the lending process easy and straightforward?
  • Requirements for business history. Can a brand-new business take out a loan, or is there a minimum time that the business must have been in operation in order to qualify? What other verification and/or collateral is required to secure the loan?
  • BBB rating. Does the lender have an established history of good business practices?

TopConsumerReviews.com has reviewed and ranked the best Business Loan programs available today. We hope this information helps you find the best loan for your small business at an affordable rate!



Business Loans In The News

Keep an Eye on Business Loans

Banks are making more loans to businesses, a potential bright spot as earnings roll in that could be a boon to sluggish shares of lenders. Commercial and industrial loans grew 5.5% from a year earlier ...

Published:  Fri, 13 Jul 2018 05:31:00 GMT



Wells Fargo earnings fall as bank reports a tax hit, fewer loans and deposits

John Shrewsberry, the bank's chief financial officer, said on a conference call that while the decision deals mostly with sales taxes, it could also mean some Wells Fargo subsidiaries - specifically b...

Published:  Fri, 13 Jul 2018 22:45:00 GMT



BBB: Do you have student loan debt Don't fall for this scam

Student loan debt affects more than 42 million Americans, with outstanding balances of more than $1.4 trillion. The Federal Trade Commission and Better Business Bureau are warning consumers of decepti...

Published:  Sun, 15 Jul 2018 02:00:00 GMT



LendingTree to buy Austin's Student Loan Hero for $60 million

LendingTree Inc., which is based in Charlotte, North Carolina, announced Friday that it plans to acquire the business for $60 million. The all-cash transaction between is expected to close by the end ...

Published:  Fri, 13 Jul 2018 11:59:00 GMT



Human Touch + High Tech = Business Loan Growth

Even though mobile apps and online services are the norm in most people's everyday lives, research shows when it comes to borrowing, business owners still value personal service and existing relations...

Published:  Fri, 13 Jul 2018 06:21:00 GMT



Latest battle over California lending market: Should grocery stores offer large loans

And the two companies are by far the largest lenders in the pilot program, together accounting for 98% of all pilot-program loans made last year, according to a report by the state Department of Busin...

Published:  Thu, 12 Jul 2018 18:15:00 GMT



Wells Fargo Breaks From the Herd on Loans, Saying It's Time to Be Prudent

Citigroup posted a 6 percent increase helped by growth in credit-card loans and the firm's Asia business. At Wells Fargo, Chief Financial Officer John Shrewsberry played down the impact of a Federal R...

Published:  Fri, 13 Jul 2018 10:32:07 GMT



How to apply for a business loan

You should pay special attention to writing your loan application because it is going to be foremost in getting approval for the business loan from the bank, according to www.commencebusiness.com. You ...

Published:  Thu, 05 Jul 2018 16:09:00 GMT



Wells Fargo's loan book shrinks, profit misses estimates

Even with loan balances falling, the bank's net interest income rose ... overhauling internal departments, combining certain business areas and other measures. Net income applicable to common stock fe...

Published:  Fri, 13 Jul 2018 17:28:00 GMT



SBA loan approvals, dollars take a dip in June

The number of government-guaranteed small business loan approvals probably won't top 1,000 before the federal fiscal year ends in three months. But the director of the U.S. Small Business Administrati...

Published:  Fri, 13 Jul 2018 07:38:00 GMT




We recommend

 

- View Full Site -