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Compare Fundbox vs. Kabbage business financing

Find out how these two leading online business lenders stack up.

While traditional lenders like banks are reluctant to lend to risky small businesses, a new generation of nontraditional lenders have blossomed — resulting in loans that come with less paperwork and easier applications. We compare two relatively new online lenders, Fundbox and Kabbage, to help you narrow down your choices.

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Overview of Fundbox and Kabbage

Founded in 2008, Kabbage offers business lines of credit for the convenience of ongoing funding without tapping into your cash flow. What sets it apart is its willingness to look beyond your credit score, as well as considering your business’s cash flow and performance when deciding on your loan rate and terms. No matter where you live in the US, you can often get a decision on your application in minutes.

Like Kabbage, Fundbox too emphasizes the financial health of your business over your personal credit score. Founded in 2013, Fundbox’s business financing is a hybrid line of credit and invoice factoring option that comes with quick, easy approval and funding.

First, am I eligible?

There’s not a lot of overlap in eligibility requirements for these two lenders, possibly a result of their different types of business funding.


You’re eligible for a loan with Fundbox if:

  • You run a business that’s registered in the US.
  • Your invoice history has been active for the past three months.
  • Your business has a checking account or uses accounting software partnered with Fundbox.


For a loan with Kabbage, you’re eligible if:

  • You’ve been in business for at least one year.
  • Your business makes at least $50,000 a year or generated at least $4,200 each month for the last three months.

Which lender can get me money faster?

Fundbox and Kabbage both offer online applications that are easy to complete for decisions within a day. Their differences come down to funding turnaround — or when you can actually start accessing your loan after approval.


Fundbox is a fully online lender, which means that you won’t need to visit or call a representative. Simply create an online account with your personal and financial details. You then have the option to link your business accounts — such as PayPal, eBay, Amazon, QuickBooks and more.

Fundbox provides decisions within a few hours and, once approved, transfers funds to your account as early as the next business days.


Like Fundbox, Kabbage offers an easy online process — from applying to funding. First, you create an account with your email and password, telling Kabbage the name of your business and your industry. You’re also asked to link your business accounts before submitting your completed application.

Once you submit it, Kabbage typically provides a decision in minutes. And if you accept its contract, you can start accessing your line of credit online in a few days.

  • Winner: Fundbox

    Although Kabbage promises faster approval, you’ll be able to access your approved funds more quickly with Fundbox.

Which has a better reputation?


More than 450 people have reviewed Fundbox on Trustpilot, rating it an average 9.7 out of 10. And more than 90% of all users rate it an excellent lender. You’ll find users who crow about Fundbox’s customer service — a good sign in the online lending world.


Kabbage has quite a few more reviews on Trustpilot. More than 3,000 users give Kabbage an average rating of 9.3 out of 10, and more than 80% rate its services as excellent. But despite the flexibility of its lines of credit, customers complain about high monthly payments.

  • Winner: Kabbage

    This one’s hard to call, given the equally great averages. But Kabbage has far more reviews and still maintains a high average, making it our winner for this category.

How much can I borrow with each lender?


With Fundbox, you could be approved for a line of credit that’s anywhere from $1,000 to $150,000.


With a Kabbage business line of credit, the minimum requirements are higher than Fundbox, but you could be approved for up to $50,000 more — loans start at $1,000 and top out at $150,000.

  • Winner: Tie

    It all depends on how much money you want to borrow. Fundbox could a good choice for smaller amounts of under $1,000. Kabbage is a solid option if you’re looking to borrow more than $100,000.

Which lender offers more affordable financing?

Fundbox and Kabbage both claim they don’t charge interest on their loans — but that doesn’t mean you won’t be paying a percentage of your balance each month. For this, you’ll want to closely look at their fees.


Fundbox charges a flat fee for its advances on your unpaid invoices. That fee, it turns out, is a percentage of your balance each time you make a payment — a payment that’s weekly, not monthly. Rates start at 4.66% for a 12-week credit line and 8.99% for a 24-week credit line.

If you’re unable to make your payments on time, you could be stuck with triple the amount you owe, also reimbursing Fundbox any fee that comes with its failed attempt to withdraw money from your accounts.


You aren’t charged interest in the typical way with a Kabbage loan. Every month, you pay back an equal amount on your principal plus a monthly fee that can be up to 10% of your loan amount, depending on your creditworthiness. Fees are further broken down by six- or 12-month terms, but you don’t pay this fee until you actually withdraw money from your line of credit.

For six-month business lines of credit, you’ll pay:

  • 1.5% to 10% of your principal for the first two months.
  • 1% of your principal for the remaining four months.

For 12-month business lines of credit, you’ll pay:

  • 1.5% to 10% of your principal for the first six months.
  • 1% of your principal for the remaining six months.

The good news is that you won’t pay origination fees or prepayment penalties, which gives you some room to save on interest by paying off your loan early.

  • Winner: Tie

    Though neither provider technically charges interest, you’ll need to scrutinize their fees to get a solid idea as to how much this loan is going to ultimately cost you.

Case study: Ralph deals with a restaurant fire

A fire recently broke out at Ralph’s restaurant, and though a lot of his space was spared, the kitchen requires gutting. Thankfully, he received compensation from his insurance company.

But there’s a lot of out-of-pocket expenses to deal with. He estimates that $5,000 could be enough to emerge from this rough patch, and he likes the flexibility of a line of credit that could help him borrow only what he needs.

He has a fair amount of business invoices due in the next few weeks, which also helps. To get the money more quickly, he compares two online lenders he’s heard about: Fundbox and Kabbage.

FeesEase of application
FundboxFrom $18.73 a week on a $5,000 loan for 24 weeksSimple online application with decisions in hours.
Kabbage$75–$500 monthly fee on a $5,000 loanSimple online application and nearly immediate decisions.

Weighing the fees he could expect to pay, Ralph decide to go with Kabbage. Even though its fee structure is complicated, he can avoid a weekly fee for a more manageable monthly repayment. And with no prepayment penalties, he can avoid yet more money in fees by applying to his principal the cash he expects his invoices bring in earlier than his repayment term.

Bottom line

Whether you ultimately take out a loan with Fundbox or Kabbage boils down to your personal needs. If you’re looking for only a small cash infusion between invoicing cycles, Fundbox could be a good choice. But if you want more time between payments, look into Kabbage.

No matter your needs, it may make sense to check out more financing options for small businesses before signing a contract.

See how other top business financing providers compare

LoanBuilder vs. OnDeckSee comparison
Kabbage vs. OnDeckSee comparison
BlueVine vs. FundboxSee comparison
OnDeck vs. ProsperSee comparison
OnDeck vs. LendingClubSee comparison

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