Both BlueVine and Kabbage offer a business line of credit. If you’ve ever used a credit card, you already have a pretty good idea of how a business line of credit works: You get approved for a certain credit limit, and then you can borrow against that limit. As you repay what you borrowed, those funds become available to borrow again.
As you can imagine, that makes a business line of credit one of the more versatile financing options. After all, you don’t have to reapply for funding over and over―so you can use your funds for whatever working capital needs come up:
- Buying inventory
- Covering a cash flow gap
- Launching a marketing campaign
- Making payroll
- Other working capital needs
Now, with a BlueVine line of credit, you can get a higher potential credit limit than with a Kabbage line of credit. Your actual credit limit will depend on your borrower qualifications (your credit score and so on), so that may not matter too much. But if you’ve got stellar qualifications and want a bigger credit limit, BlueVine may be the better lender.
BlueVine also offers invoice factoring. This type of financing lets you make the most of unpaid invoices by using them as collateral. BlueVine will give you up to 90% of the invoice value upfront, and then you’ll get the remaining percentage (minus fees) when your client pays their invoice.
For B2B business owners, invoice factoring can offer a great way to get cash flow when you’d otherwise be waiting for customers to pay up. But take note―it can get expensive, especially if your clients don’t pay in a timely manner.
At any rate, if you want to use invoice factoring, you’ll definitely need to choose BlueVine over Kabbage.