BlueVine vs. Kabbage Loans 2021

Figure out which lender is better for your business by comparing loan types, costs, requirements, and more.
Best for most businesses
BlueVine
BlueVine
3.6 out of 5 stars
3.6
Starting at
4.8% interest
  • Icon Pros  Dark
    Invoice financing & lines of credit
  • Icon Pros  Dark
    Same- or next-day funding
  • Icon Pros  Dark
    4.5 Trustpilot score1
Best for personal loans
Kabbage
Kabbage
3.1 out of 5 stars
3.1
Starting at
0.25% monthly fee
  • Icon Pros  Dark
    Lines of credit only
  • Icon Pros  Dark
    Funding within 3 days
  • Icon Pros  Dark
    3.8 Trustpilot score2

BlueVine and Kabbage are two fintech lenders (also called online lenders or alternative lenders) that offer convenient business financing. They have a couple obvious differences―like how BlueVine offers invoice factoring while Kabbage does not―but if you’re looking for a business line of credit, it may be hard to figure out which online lender you ought to borrow from.

In this lender comparison, we’ll help you determine exactly that. We’ll look at some key factors, including your loan options, borrower requirements, and financing costs from each lender.

So by the end you’ll see why we recommend BlueVine for most businesses―and why you might choose Kabbage instead.

BlueVine and Kabbage are best for...

Compare BlueVine vs. Kabbage

As we’ve said, Lendio and LendingTree are both loan marketplaces (or lending marketplaces, if you prefer).

Since you’re interested in these two companies, you probably already have a pretty good idea of what that means―that they partner with lenders rather than extending loans themselves, that they let you compare your personalized loan options, and so on. You can think of them as business loan brokers, really.

BlueVine vs. Kabbage loan options

Lender
Financing product
Min./max loan size
Lowest listed rate
Repayment term
Get funding
BlueVine

Bluevine

Invoice factoringUp to $5 million0.25%/weekN/A
BlueVine

Bluevine

Line of creditUp to $250,0004.8% interest6–12 mos.
Kabbage

Kabbage

Line of credit$1,000/$150,0000.25% monthly fee6–18 mos.

Data effective 8/12/21. At publishing time, amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.

To begin with, let’s look at the big picture.

BlueVine and Kabbage are, as we said above, fintech lenders. That means that―unlike traditional banks―they exist pretty much entirely online. You apply for, get approved for, and repay your financing all through the convenience of your computer (or smartphone or other device). 

In many cases, online lenders work faster than traditional lenders―and BlueVine and Kabbage are no exception. Both of these lenders can have you approved and funded within a few days.

The downside of choosing an online lender? Generally speaking, they cost more than banks. On the other hand, though, online lenders often have looser borrower requirements than banks. And again, both of these things are true of both Kabbage and Bluevine.

But let’s get more specific and see how Kabbage and BlueVine compare to each other.

Most loan types: BlueVine

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.

Money
Looking for a term loan?

Neither BlueVine nor Kabbage offers a classic business loan (in which you borrow a one-time lump sum and repay that over time). If that’s what you want, we suggest applying with Lendio instead.

Best borrower requirements: Bluevine

Whether you want a line of credit or invoice factoring, you’ll have to meet certain borrower requirements. 

BlueVine is much more transparent about its requirements than Kabbage. To get either of BlueVine’s financing products, your business needs to make $10,000 in monthly revenue ($120,000 in annual revenue). 

But BlueVine’s invoice factoring has much looser requirements than its line of credit. Even business owners with bad credit (a 530 credit score) can qualify for BlueVine factoring, as can very young businesses (just three months old). You’ll need a better credit score (600) and an older business (six months) to qualify for a line of credit.

Lendio vs. LendingTree borrower requirements

Lender
Product
Min. credit score
Min. revenue
Min. time in business
Get funding
BlueVine

Bluevine

Invoice factoring530$10,000/mo.3 mos.
BlueVine

BlueVine

Line of credit600$10,000/mo.6 mos.
Kabbage

Kabbage

Line of creditUnlistedUnlisted12 mos.

Data effective 8/12/21. At publishing time, amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.

Unfortunately, like we said, Kabbage isn’t upfront about what it expects from borrowers. Your business does have to be at least one year old―much older than BlueVine―but Kabbage doesn’t list a minimum credit score or monthly revenue. (It used to accept poor credit and $50,000 in annual revenue, but that was before it overhauled its financing.)

That said, Kabbage does list one other requirement: Right now, you have to be either an existing Kabbage Funding customer or an American Express credit card customer to apply. (We expect applications to open to the general public sometime soon.)

So between Kabbage’s exclusivity, higher time in business requirement, and mysterious other standards, BlueVine has the overall lower borrower requirements.

Best loan costs: BlueVine

Let’s assume you get approved for your line of credit or invoice financing. How much will you pay for it?

BlueVine has very low starting interest rates on its credit lines: 4.8%. With a Kabbage line of credit, however, you pay a monthly fee rather than interest. These fees start at 0.25%.

So say you borrowed $10,000 from your credit line. Assuming you had the lowest possible rate from each lender and a payment term of 1 year, your Kabbage loan would end up with $300 in fees. Your BlueVine loan would accrue $261.90 in interest. (And of course, the difference gets bigger with a larger loan.)

That makes a BlueVine line of credit the cheaper option―though your specific rate will, again, depend on your personal and business qualifications.  

BlueVine invoice factoring is more expensive than either a BlueVine or Kabbage line of credit, with a 0.25% weekly fee.

Fastest application process: BlueVine

As we noted earlier, both Kabbage and BlueVine work pretty quickly when compared with a traditional bank. 

Kabbage and BlueVine use automated algorithms to approve (or deny) your loan application. Basically, you’ll hook your lender of choice up with your business bank account (your business checking, more specifically). The lender will then use the algorithm to analyze your account and determine whether or not you qualify for funding―all in a matter of minutes.

That means that Kabbage and BlueVine can approve you the same day you apply.

Of course, you still have to get your money after you’re approved. Both lenders will deposit funds into your business checking account. With Kabbage, this takes up to three days. BlueVine says you can expect next-day funding if you choose an ACH transfer, or you can get same-day funding by paying a wire transfer fee. 

So either lender can get you money within a few days, but BlueVine’s same- or next-day funding makes it the faster of the two.

Best Small-Business Loans
Lendio
Best overall
4 out of 5 stars
4.0
Fundera by NerdWallet
Best for SBA microloans
3.9 out of 5 stars
3.9
Funding Circle
Best for established businesses
3.8 out of 5 stars
3.8
BlueVine
Best for fast funding
3.7 out of 5 stars
3.7
Fundbox
Best for young businesses
3.6 out of 5 stars
3.6
Learn more about our top brands.

Other products

One final thing to consider? Other financial products from these lenders.

BlueVine and Kabbage both offer business checking accounts―and pretty good ones at that. Neither charges a monthly fee (or most usual banking fees), and you can earn interest on your bank account balance. (You can learn more in our guide to the best online business bank accounts.)

Now, you don’t need to use BlueVine or Kabbage for lending in order to use their banking services―or vice versa. But it can be convenient to keep your financial products in one place, so we thought the banking was worth mentioning.

Oh, and Kabbage also has credit card processing in the pipeline, but it’s not available yet.

So now you’ve got the skinny on BlueVine and Kabbage. You’ve probably already sussed out which one sounds better, but we’ve got some final recommendations.

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Best for most businesses: BlueVine

BlueVine
BlueVine
3.6 out of 5 stars
3.6

Starting at 4.8% interest

  • Direct lender
  • Instant or next-day approval
  • Same or next-day funding

For most businesses, BlueVine is the superior lender.

There’s quite a few reasons for that. Take loan choices. BlueVine offers both a line of credit and invoice factoring, meaning it has financing options for more businesses. It also has higher credit limits than Kabbage. Likewise, BlueVine has lower (and more transparent) borrower requirements. Even young businesses or business owners with less-than-perfect credit can qualify, making BlueVine more accessible.

Plus, BlueVine has lower starting rates. Sure, the difference  between BlueVine’s interest rate and Kabbage’s weekly fees may not be dramatic, but when you’re running a business, every dollar counts. 

Throw in the fact that BlueVine can get you money faster, and you can see why we recommend BlueVine over Kabbage.

BlueVine loan options

Financing product
Min./max. loan size
Lowest listed rate
Repayment term
Get funding
Invoice factoringUp to $5 million0.25%/weekN/A
Line of credit"Up to $250,000"4.8% interest6–12 mos.

Data effective 8/12/21. At publishing time, amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.

That doesn’t make BlueVine perfect, of course. It has shorter maximum payment terms than Kabbage, which could lead to higher monthly payments. And while we’re glad BlueVine has invoice factoring available, it’s definitely not the cheapest way to get cash flow.

Even so, BlueVine offers flexibility, accessibility, and lower costs―making it our preferred lender for most businesses.

Best for longer repayment: Kabbage

Kabbage
Kabbage
3.1 out of 5 stars
3.1

Starting at 0.25% monthly fee

  • Direct lender
  • Instant approval
  • Up to 3 days for funding

We really only recommend Kabbage over BlueVine if you want a longer repayment term.

With a Kabbage line of credit, you can get up to 18 months to repay your Kabbage loan. That’s a solid six months more than you can get from BlueVine. And while a longer repayment term isn’t always better (after all, you’ll pay more in monthly fees if you have more months), it can mean a lower, more doable monthly payment.

That said, you do have to qualify for an 18-month repayment term―Kabbage doesn’t hand them out to just anyone. So even if you want a longer repayment term, you need to make sure you meet Kabbage’s standards and then some.

Kabbage loan options

Financing product
Min./max. loan size
Lowest listed rate
Repayment term
Get funding
Line of credit$1,000/$150,0000.25% monthly fee6–18 mos.

Data effective 8/12/21. At publishing time, amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.

Setting repayment terms aside, we do need to note that Kabbage isn’t a bad option. It still offers a flexible line of credit with a lower cost than you’d find from some other online lenders. It’s just not quite as impressive as BlueVine.  

Besides, the fact that Kabbage currently accepts applications from existing customers and American Express users really limits the number of business owners we can recommend it to.

Put simply, if you can qualify for a long repayment term with Kabbage, it might be worth going with. But in most cases, we’d stick with BlueVine.

BlueVine vs. Kabbage FAQ

Are Kabbage and BlueVine the same?

No, Kabbage and BlueVine are not the same lender. They are both online lenders that offer lines of credit―so they do have quite a bit in common―but they’re two different companies.

Which is better―BlueVine or Kabbage?

We think BlueVine is the better lender, since it offers more loan choices, more transparency with borrower requirements, and lower starting costs.

Is BlueVine an SBA-approved lender?

BlueVine was approved to offer SBA PPP loans, but that program has ended. It’s not approved to offer normal SBA business loans, though. (If you’re interested in SBA loans, we suggest looking at Fundera.)

Is BlueVine legit?

Yes, BlueVine is a legit company. Thousands of satisfied customers have given it very positive reviews on Trustpilot.1

The takeaway

While both BlueVine and Kabbage offer a convenient way to get a business line of credit, we think most business owners are better off going with BlueVine. That’s because BlueVine offers more types of financing, has moderate and clear borrower requirements, and has more affordable starting costs.

Still, Kabbage is a perfectly viable choice―especially if you’d prefer a longer repayment term on your line of credit. Just note that right now Kabbage only accepts applications from existing Kabbage and American Express customers. 

Want to see how BlueVine stacks up against another Kabbage competitor? Check out our comparison of BlueVine vs. Lendio.

Related content

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

Sources

  1. Trustpilot, “BlueVine.” Accessed August 12, 2021.
  2. Trustpilot, “Kabbage.” Accessed August 12, 2021.
Chloe Goodshore
Written by
Chloe Goodshore
Chloe covers business financing and loans for Business.org. She has worked with many small businesses over the past 10 years, from video game stores to law firms. Those years watching frustrated business owners try to sift through their many options gave her a passion for breaking down complex business topics. She wants to help business owners spend less time agonizing over their businesses so they can spend more time running them.
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