Lendio vs. Kabbage Lending 2021

Compare loan options, borrower requirements, and more between Lendio and Kabbage.
Best for most businesses
4 out of 5 stars
Starting at
4.25% interest
  • Icon Pros  Dark
    Loans, lines of credit, and more
  • Icon Pros  Dark
    Days-long approval process
  • Icon Pros  Dark
    4.7 Trustpilot score1
Best for fast approval
3.1 out of 5 stars
Starting at
0.25% monthly fee
  • Icon Pros  Dark
    Lines of credit only
  • Icon Pros  Dark
    Instant approval available
  • Icon Pros  Dark
    3.8 Trustpilot score2

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Lendio and Kabbage are two small business lending companies, but they work in very different ways. Lendio matches you with potential loan offers from its lender partners, while Kabage directly offers lines of credit. So which company offers the better way to get a small-business loan?

Well, that depends on your specific needs―but mostly we recommend Lendio. And in this article, we’ll tell you why. We’ll break down what loan types Lendio and Kabbage offer, what it takes to qualify for them, and how you apply for them and get funded.

Compare Lendio vs. Kabbage

Lendio and Kabbage are both online lending companies that offer small-business owners a way to get business loans. They go about that very differently, though.

Lendio vs. Kabbage overview





Lender typeLoan marketplaceDirect lender
Loan typesTerm loans, lines of credit, AR financing, & moreLines of credit only
Lowest starting rate4.25% interest0.25% monthly fee
Max. loan amount$5 million$150,000
Min. time in business6 mos.12 mos.
Get Funding

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.

See, Lendio isn’t actually a lender―it’s a loan marketplace. You can think of it like a broker for business loans. You submit a loan application with Lendio, and then Lendio shops around its lender network for you. You’ll get some relevant loan offers, and then you’ll choose which lender you want to go with. At that point, you’ll have to finalize things with your chosen lender.

Kabbage, on the other hand, is a direct lender. That means you apply with Kabbage itself, get approved by Kabbage, and ultimately get your money from Kabbage.

This difference matters a lot. To see how, let’s start by talking about loan options.

Best loan options: Lendio

As a lending marketplace, Lendio partners with all sorts of different lenders (both online lenders and traditional lenders). And all those different lenders offer all sorts of loan types. So with one application to Lendio, you can get considered for loads of different loan options:

  • Term loan
  • Line of credit
  • Merchant cash advance
  • Commercial real estate loan
  • Accounts receivable financing (aka invoice factoring)

(That’s not even a comprehensive list.)

Kabbage, meanwhile, offers exactly one type of financing: a business line of credit.

And sure, lines of credit offer very versatile working capital. (You use them kind of like a credit card, by borrowing, repaying, and borrowing again.) But if you need to buy a new building, say, or get cash from unpaid invoices, then you’ll probably want something more specialized―which is where Lendio’s loan choices come in handy.

Plus, Lendio partners with more than 75 lenders (including Kabbage itself!). So even if you want a line of credit, Lendio will let you compare lines of credit from different lenders.

Put simply, Lendio has a ton of loan options―and that gives you the chance to find the perfect loan (or other type of financing) for your business. 

Most flexible borrower requirements: Lendio

Of course, you’ll need to qualify for any kind of financing you want. Generally, this means meeting certain basic requirements, like a minimum credit score, annual revenue amount, and time in business.

Lendio vs. Kabbage borrower requirements





Min. credit score560Unlisted
Min. revenue$50,000/yr.Unlisted
Min. time in business6 mos.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.

With Lendio, specific borrower requirements will depend on the type of loan you want and the lender you go with. But overall, Lendio has accessible and flexible borrower requirements. Thanks to all the types of financing it offers, Lendio can help business owners that have bad credit, young businesses (less than one year old), and moderate revenue amounts (of just $50,0000).

So even if you don’t qualify for a big term loan, for example, Lendio may be able to match you with a different working capital loan or cash advance or something.

But with Kabbage’s one line of credit, you don’t get that kind of flexibility. And annoyingly, Kabbage doesn’t list all of its borrower requirements. We know your business has to be at least one year old to qualify (older than Lendio’s minimum), but Kabbage doesn’t list specific credit score or revenue requirements.

Still, Kabbage would have a hard time beating Lendio, since Lendio’s minimum requirements can compete with most online lenders. Between its low minimums and the flexibility from all its loan choices, Lendio wins when it comes to borrower requirements.

Best application process: Tie

Things get a little less clear cut when it comes to actually applying for your loan.

As a direct lender, Kabbage has a faster loan application process. You just answer a few questions and then let Kabbage connect with your business bank account (don’t worry―it’s safe). Then Kabbage will automatically decide whether or not to approve you. The whole process takes maybe 15 minutes.

Lendio takes a lot longer. After all, you have to fill out that initial application, wait to get matched with appropriate financing options, and then finalize your application with your desired lender.

Still, that doesn’t necessarily mean Kabbage will get you money faster. It can take up to three days for Kabbage’s business funding to show up in your bank account. Depending on what type of financing you’re looking for, Lendio can match you with lenders in less than 24 hours, and those lenders can then fund you within a day or two.

So while Kabbage can approve you faster, it may not actually fund you faster than Lendio. And since Lendio offers the more personalized matchmaking experience, we don’t think either lending company offers a clearly better loan application process.

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Lendio: Best for most businesses

4 out of 5 stars

Starting at 4.25% interest

  • Lending marketplace
  • Days-long approval process
  • Several days (or more) to funding

We said this in the beginning, but we’ll say it again: we recommend Lendio for most small-business owners.

It’s just hard to top Lendio’s business lending marketplace. Lendio offers so many types of loans from so many different lenders that it can meet all kinds of financing needs from all sorts of borrowers.

Whether you’ve got an established business in need of a commercial mortgage to expand operations, a young business needing invoice factoring to deal with cash flow interruptions, or a growing startup looking for a versatile working capital through a line of credit, Lendio can help.

Then there’s Lendio’s personalized matchmaking. When you apply with Lendio, you get a loan specialist that will find the best loan offers for you and then walk you through them. That means you get a personal touch and plenty of advice to make sure you get a loan that truly fits your business’s unique needs.

Lendio business financing options

Min./max loan amount
Lowest listed rate
Min. credit requirement
Get funding
Accounts receivable financingUp to 90% of invoice2% factor rateUnlisted
Business acquisition loan$5,000/$5 million5.5%Unlisted
Business line of credit$1,000/$500,0008%560
Commercial mortgage$250,000/$5 million4.25%Unlisted
Equipment financing$5,000/$5 million7.5%650
Merchant cash advance$5,000/$200,00018%N/A
Short term loan$2,500/$500,0008%Unlisted
SBA loanUp to $5 millionPrime+Unlisted
Startup loan$500/$750,0000%680
Term loan$5,000/$2 million6%Unlisted

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.

Of course, that matchmaking process doesn’t happen instantaneously. Depending on what kind of funding you’re looking for, you may have to wait a day or two (or three) to get your matches. Likewise, depending on the lender you choose, you could end up waiting much longer to actually get the money your business needs. So Lendio can definitely be a slower option.

Still, Lendio offers so much value that it's well worth applying with―especially since your Lendio application can qualify you for Kabbage as well.

Unless you’re in a real hurry to get approved, Lendio offers the best business loan options for most businesses.

(For even more on why we recommend Lendio, check out our Lendio review.)

Grow your business today

Browse hundreds of loan options, custom-tailored to your business and budget needs, from a single, simple platform.

Kabbage: Best for fast approval

3.1 out of 5 stars

Starting at 0.25% monthly fee

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

Don’t want to wait around to see whether or not you can get a business loan? Then Kabbage might be more your speed.

Kabbage, like some other online lenders, uses an automated approval process to instantaneously evaluate your loan application. It uses a fancy algorithm to look at your business bank account (and some other business details) and then decide on the spot whether or not you get approved. That can save you a lot of time worrying and waiting around.

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.

That said, Kabbage’s instant approval doesn’t always get you your money any faster. Kabbage takes up to three days to fund you―slower than many online lenders. And with just one type of financing, you might decide Kabbage funding isn’t worth waiting on.

Still, if you’re the kind of small-business owner that would sit around anxiously waiting to hear back about a loan, Kabbage’s instant approval might make it more appealing than Lendio.

So while we think Lendio will work better for most businesses, Kabbage can work well for business owners that want an instant decision on their line of credit application.

(And you can learn more about Kabbage’s line of credit and approval process in our Kabbage review.)

Lendio vs. Kabbage FAQ

Is Lendio a legitimate company?

Yes, Lendio is a legitimate company. That’s why it has thousands of very good reviews on Trustpilot.1

Is Lendio legit for PPP loans?

Yes, Lendio was a legitimate source for PPP loans. Of course, Lendio―like all other lenders―no longer offers new PPP loans.  

Is Kabbage a good lender?

Kabbage can be a good lender for some businesses, depending on their needs.

Are Lendio and Kabbage the same company?

Nope, Lendio and Kabbage are not the same company―but they do partner together. Lendio is a loan marketplace (that lets you compare loan offers), while Kabbage is a direct lender.

The takeaway

Lendio’s marketplace offers the chance to get many kinds of loans from many different lenders (even Kabbage)―meaning good deals for you as a business owner. That’s why it’s our top pick for most businesses.

Kabbage does have a versatile line of credit, though. And it may be worth applying directly with Kabbage if approval speed matters to you (though funding could still take a few days.)

Want to see options besides Lendio and Kabbage? Check out our rankings of the best small-business loans.

Related content


To score and rank Lendio and Kabbage, we looked at factors like loan availability, loan rates, borrower requirements, customer reviews, and more. We then based our reviews on these scores and factors.


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, “Lendio.” 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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