Kabbage vs. Fundbox: Which Business Line of Credit Is Right for You?

Your priorities and your qualifications can help you figure out whether Fundbox or Kabbage is better for your business.
Most Convenient
3.1 out of 5 stars
  • pro
    Same-day funding available
  • pro
    Multiple ways to access funding
Best for Bad Credit
3.6 out of 5 stars
  • pro
    Low approval requirements
  • pro
    Fast funding

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If you’ve been looking at business lines of credit, you’ve probably seen Fundbox and Kabbage come up over and over again. They’re both online lenders that offer lines of credit. They both have relatively low borrower requirements (a nice change from traditional banks with their high requirements).

In fact, they seem to have a lot in common―so much that it can be hard to figure out which company you should apply with.

Well, we’ve dug into both lenders for you. We’ll explain how they’re similar, cover how they’re different, and help you find out which one will work better for you.

Fundbox, Kabbage, and COVID-19

Before we get into the usual details, we want to update you on how Fundbox and Kabbage have responded to COVID-19. There’s both good news and bad news. Let’s start with the good.

Help for small businesses

Both Fundbox and Kabbage are accepting applications for Paycheck Protection Program loans, a special type of SBA loans. As of April 16, 2020, program funds have been exhausted, but both lenders are still accepting applications in the hopes that more funding gets approved.

Plus, both lenders have created initiatives to help small businesses weather the coronavirus storm. For example, Kabbage has created a website that makes it easy for businesses to sell gift cards. Fundbox has launched a campaign urging the government and large businesses to pay small-business vendors ASAP.

Big funding cuts

Now the bad. Both Fundbox and Kabbage have cut tons of funding for their customers. Kabbage customers report their credit lines being closed outright. Fundbox customers report having their credit limits slashed (we saw customers say they’d been dropped to $1,000, and other customers reported an 80% decrease in their limit).

Needless to say, customers are not very happy. (A big understatement.) Yes, both companies were technically within their rights to take such drastic action. And they both say it was a necessary step. That doesn’t make it sting any less.

The future

For right now, Kabbage is accepting only PPP loan applications. Fundbox is still accepting other applications, but it’s unclear as to whether it’s actually approving and funding applicants.

We assume that, with time, both companies will resume normal operations, so the remainder of this guide reflects how Fundbox and Kabbage work under normal circumstances.

Just keep in mind that as of April 2020, we’re not in normal circumstances. But we hope things improve soon.
And now, back to the usual article.

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How Fundbox and Kabbage compare

As we’ve already mentioned, Fundbox and Kabbage seem to have a lot in common. So let’s take a closer look and see how Kabbage and Fundbox compare in a few key categories.

A technical note
Fundbox and Kabbage are technically fintech companies (a fancy way of saying their product deals with financial technology). They connect you with lenders, but they don’t lend themselves. You shouldn’t notice any difference, though. For simplicity’s sake, we’ll still refer to them as lenders.

Financing basics

Fundbox and Kabbage both offer exactly one funding product: a business line of credit.

That means that they both give you a credit limit and let you borrow as much as you want up to that limit. As you repay the money you borrow, you can go ahead and borrow more money. You can do this over and over as much as you want.

Kabbage vs. Fundbox lines of credit

Loan min./max.
Lowest interest rate
Repayment term
Get a loan



1.5 factor rate

6–18 mos.



4.66% draw rate

12–24 wks.

Data effective 04/16/20. At publishing time, line of credit specifications are current but are subject to change. Offers may not be available in all areas.

Lines of credit work well for all sorts of working capital needs. For example, you can use them to address cash flow problems (like paying bills while you’re waiting on unpaid invoices). Or you can use them for revenue-building projects (like marketing campaigns). You can also use them to take advantage of time-sensitive opportunities (like bulking up your inventory before a seasonal rush).

As you can see, Fundbox’s line of credit has a lower maximum amount than Kabbage’s does. So if you think you need larger amounts, then you’ll probably prefer Kabbage. (Of course, these are maximum credit limits―there’s a fair chance your credit limit will be lower.)

Fundbox invoice financing
Fundbox used to offer invoice financing, called Fundbox Credit (at the time, its line of credit was Fundbox Direct Draw). It no longer offers this type of financing.

Kabbage also has longer repayment terms (perhaps to go along with those higher loan amounts?). In fact, its minimum repayment term is as long as Fundbox’s longest repayment term.

Note too that Kabbage has a monthly repayment schedule, while Fundbox has weekly payments. In both cases, your lender will automatically withdraw your payment from a linked business bank account.

And then there’s the fees.

Rates and fees

Fundbox and Kabbage express their fees in different ways. It can make it hard to compare. Neither charges simple interest. Instead, they both simply charge “fees” that are a percentage of your loan amount.

Because of their payment structures, Fundbox charges fees on a weekly basis, while Kabbage charges on a monthly basis.

When you make payments to either lender, you’re paying both principal (the amount you borrowed) and interest. Both lenders schedule their payments so that for a while, a bigger percentage of each payment is fees. Partway through your term, your payment will be adjusted to a higher percentage of principal and a lower percentage of interest (but your payment amount will stay the same).

Note that if you look at annual percentage rate (APR), both Fundbox and Kabbage are relatively expensive when compared to traditional lenders. That doesn’t mean that they charge huge amounts in fees (although they do charge more than some business lenders), but it does mean that you have to repay those fees (and your principal) very quickly. If you spread the same fees over several years, the APR would look much lower.

At any rate (get it?), Fundbox and Kabbage will tell you exactly what fees you’ll pay before you draw from your credit line. So you should never be surprised by fees.

Of course, your exact fee amount will depend on things like your borrower qualifications.

Borrower requirements

Compared to traditional lenders (banks and credit unions), both Fundbox and Kabbage have very relaxed borrower requirements.

Kabbage vs. Fundbox borrower requirements

Min. credit score
Min. annual revenue
Min. time in business
Get a loan




1 yr.




1 yr.

Data effective 04/16/20. At publishing time, line of credit specifications are current but are subject to change. Offers may not be available in all areas.

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?

Application and approval

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.

Manual approval
In a few cases, Kabbage and Fundbox might need to manually approve your application. This underwriting process can take a few days. It’s a bummer, but it doesn’t necessarily mean you’ve been denied.

Customer reviews

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.

Kabbage: Most convenient

pro Same-day funding available
pro Multiple ways to access funding
pro Fast, automated approval process
con High rates and APR
con Confusing fee structure

It would be great if you could always plan far, far ahead―but sometimes you need to get financing ASAP.

With Kabbage, that’s not a problem. You can get approved for your new line of credit within just a few minutes, thanks to the automated application. And then you get your money just as quickly.

Sure, Fundbox also has an automated application. But Fundbox takes at least one business day to fund you.

Kabbage, on the other hand, can fund you much faster. If you choose to get money through PayPal, you can have your Kabbage funding deposited in a few minutes. (Or, if you’re in less of a hurry, you can opt for direct deposit or a Kabbage card.)

If you don’t have time to waste, then Kabbage funding may be the easiest way to get money as quickly as possible.

(Learn even more about Kabbage in our in-depth Kabbage review.)

Fundbox: Best for low credit

pro Automated application
pro Low approval requirements
pro Fast funding
con Low maximum loan amounts
con High APR

Not all of us have perfect credit. (It happens.) Thankfully, that doesn’t have to end your business financing dreams.

Fundbox has some of the lowest credit requirements we’ve seen, requiring just a 500 personal credit score. So even if you’re working on rebuilding your bad credit, you can qualify for a line of credit.

Yes, Kabbage has relatively low credit requirements too. But Fundbox accepts lower scores than Kabbage does.

Plus, as we pointed out above, Fundbox has low borrower requirements across the board. That means that Fundbox credit can also work well for startups and other businesses that need a little financial flexibility.

So if you’re looking for a line of credit despite your less-than-perfect credit, you may want to apply with Fundbox.

(And for more information on Fundbox, check out our detailed Fundbox review.)

FAQs about Fundbox and Kabbage

Does Fundbox check credit?

Yes, Fundbox checks your credit as part of your application. You need at least a 500 credit score to qualify.

Does Kabbage check credit?

Yep, Kabbage does a credit check too. It looks for a personal credit score of at least 540.

Does Kabbage file a UCC lien?

According to Kabbage’s website, there “may” be a UCC lien placed on your business assets. It also requires a personal guarantee for all loans. (Note that these are both normal practices and nothing to worry about.)

The takeaway

Kabbage and Fundbox both offer lines of credit with relatively low borrower requirements, making them ideal for many businesses that traditionally wouldn’t have qualified for term loans.

Of the two, Fundbox has even lower requirements, making it better for businesses with bad credit. Kabbage can provide faster funding turnaround, making it ideal for businesses with urgent financial needs.

Either way, you’ll get a well-reviewed line of credit.

Not convinced by either Kabbage or Fundbox? Check out our list of the best small-business loans to see some other options.


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.


1. Trustpilot, "Kabbage"
2. Trustpilot, "Fundbox"

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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