Both lenders accept credit scores in the 500s, though Fundbox will accept a lower personal credit score than Kabbage will. (For reference, banks usually require a minimum credit score in the high 600s before they’ll give you the time of day.) That makes them both good business loans for bad credit.
They also both require just $50,000 in yearly revenue. That’s a very low revenue requirement. Other online lenders often ask for at least $100,000, and traditional lenders often look for revenue north of $200,000.
But when it comes to how long your business has been around, Fundbox and Kabbage have different philosophies. Fundbox will lend to businesses that have been around for just three months, making it ideal for young startups. Kabbage, on the other hand, wants to see one year in business before it will extend a credit line.
As you can see, Fundbox has lower application requirements on the whole.
Please note that these are only minimum borrower requirements. Even if you meet them, you’re not guaranteed to get credit. The higher your qualifications, the more likely you are to get approved (and to get a higher credit limit and a lower rate).
So how do you get approved, anyway?
Fundbox and Kabbage both use automated approval processes. That means that you can get approved for funding in a matter of minutes (literally). No need to be patient.
All you have to do is provide your lender of choice with some details about your business. Then they’ll ask to connect with your business bank account.
If you’ve never encountered an automated application before, you might be a little squeamish about letting Kabbage or Fundbox see your bank account. We get it. But rest assured that this practice is becoming increasingly common, and thousands of customers have used Fundbox and Kabbage without any problems. It’s safe.
After you connect your bank account, Kabbage and Fundbox will use their proprietary algorithms to analyze your application. If things look good, you’ll be approved and on your way in no time.
If you’re still reading, you probably think that Fundbox and Kabbage sound okay. And thousands of customers would agree with you.
Kabbage and Fundbox both have a 4.7 out of 5 on Trustpilot (though Kabbage has about 5,000 more reviews than Fundbox does).1,2
Customers praise the fast, easy application process. They also like how easy it is to both draw and repay funds.
They do have some negative reviews, though. These complain about getting denied for funding, high fees, and low credit limits.
Even with those negative reviews, the vast majority of reviewers report a positive experience with Fundbox and Kabbage. The odds are in your favor.
But with all they have in common, how do you know which lender you should go with? Well, we’ve got some ideas.