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Kabbage vs Fundia

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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.

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FUNDIA

Based in Utah, Fundia Credit & Capital focuses on small business lending and is one of the few companies in our review who include startups in their group of potential borrowers. Focused entirely on small businesses, including entrepreneurs, their desire to help their borrowers succeed is evidenced by the 12 months of free counseling they provide in order to help their customers effectively manage their credit lines.

Borrowers can receive a loan of up to $200,000 with same-day approval. Unfortunately, there is nothing on Fundia's site that allows prospective borrowers to get even an estimated loan amount or an interest rate, so it is difficult to compare Fundia with other lenders in our review, with respect to affordability.

One significant difference in the Fundia process is the requirement to sign up for a credit score report through Credit Check Total (which costs $1). Applicants can either provide their Credit Check Total login information or upload a PDF of the score report. Once the applicant has entered their basic business information and total desired loan amount, along with the credit score report, he or she can be pre-approved for the Fundia process. Because Fundia doesn't require security in the form of collateral, such as real estate or equipment, they do expect at least one of the business partners (either the borrower or another partner in the business) to have a credit score of 680 or higher.

Despite a relatively short history - having been established in 2015 - Fundia is an accredited business with the Better Business Bureau, with not only an A rating but also eight positive customer reviews and no negative ones. While the lack of any detailed information regarding interest rates or fees makes it hard to determine Fundia's ranking on an apples-to-apples basis with other lenders, we're very impressed with their positive reviews with the BBB and their willingness to not only lend to startups but to partner with them to help them succeed. We give Fundia four stars, and would easily raise that score if more detailed information regarding rates and fees proved to be competitive with other lenders in the business loans market.

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Business Loans

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

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!



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