Kabbage vs BlueVine Comparison

kabbage vs bluevine

In the alternative lending industry, Kabbage and BlueVine are popular options for small businesses.

Both lenders offer financing options for business owners in need of working capital faster than it can be obtained via a bank loan or for those whose financial standing prevents them from qualifying for traditional loan options.

Working capital in the form of a business line of credit is the main offering of both Kabbage and BlueVine, but BlueVine also provides the option of invoice factoring.

As many alternative lenders do, these companies allow merchants to apply online, to get approved quickly and to receive funding with little or no delay.

The speed and lack of hassle make these options attractive to small business owners who do not have the time or desire to slog through the long application process associated with traditional loans. But when comparing Kabbage vs Bluevine, which lender ranks highest?

Loan Amounts and Loan Terms Comparison

LenderMinimumMaximum
Kabbage$2,000$250,000
BlueVine$5,000$250,000

Kabbage offers business lines of credit in amounts ranging from $2,000 to $250,000 with terms of 6 or 12 months.

BlueVine provides both credit lines and invoice factoring.

Credit-line loans are available in amounts from $5,000 to $250,000 with 6-month terms that are known as Flex6 or 12-month terms that are known as Flex12.

Factoring terms can be as long as 90 days.

KABBAGE SPOTLIGHT

kabbage logo

InvestorMint Rating

4 out of 5 stars

  • Credit Line Limit: $250,000
  • Approval Time: 10 Minutes
  • Term Length: 6-12 Months
  • Fee Rates (monthly): 1.5% – 10%

via Kabbage secure site

Funding Timeline Comparison

Kabbage funding may be available the same day as your application approval.

BlueVine provides cash in as little as one business day.

LenderTime to Funding
(as soon as)
KabbageSame day
BlueVine1 business day

Fee Comparison:
Kabbage vs BlueVine

To provide services, Kabbage requires:

  • Fixed monthly percentage of the loan principal
  • Additional fee of 1% to 10%
  • Effective APR at 24% to 99%

BlueVine, however, features different fee structures for each loan product:

  • Invoice factoring: 0.3% to 1% discount rate per week with free ACH transfers or $15 per transfer for wired funds with an effective APR of 15 to 68%
  • Flex6: 0.3% → 1.5% per week
  • Flex12: 1.5% → 6.5% per week

However, BlueVine also has a 1.6% → 2.5% draw fee and an effective APR of 15% to 78% on both credit line options.

>> Compare Kabbage vs Funding Circle


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Why Choose BlueVine?

With both lines of credit and invoice factoring available to provide funding, BlueVine is a versatile option for small business owners across industries.

BLUEVINE LINE OF CREDIT SPOTLIGHT

bluevine logo

InvestorMint Rating

4.5 out of 5 stars

  • Amounts: $5,000 to $250,000
  • APR: 15% to 78%
  • Term: 6 or 12 months

via BlueVine secure site

Flexible terms and rates offer leeway for companies with lower credit ratings, but the minimum credit requirement prevents those with very poor credit from qualifying.

Small & Large Lines of Credit

Merchants looking for a line of credit can get loans in amounts of $5,000 to $250,000 from BlueVine. This allows for a range of uses, like:

  • Supplementing daily cash flow; and
  • Making equipment purchases.

Invoice Factoring

Invoice factoring can provide $20,000 to $5 million and is best for covering gaps between issuing invoices and receiving payment from customers.

Fair Credit Accepted

Companies must be in business for three months and have a credit rating of at least 530 to apply for BlueVine’s invoice factoring.

Lines of credit require a little more financial strength. Six months of operation, a credit score of at least 600 and $120,000 or more in annual revenue qualify a business for the six-month Flex6 option.

For Flex12, a business needs two or more years of operation and a combination of either at least $450,000 in annual revenue and a credit score of at least 650 or at least $900,000 in annual revenue and a credit score of 620 or more.

Low Minimums

All lines of credit require an average monthly bank balance of at least $1,000.

Payback Periods

As the names suggest, Flex6 and Flex12 lines of credit from BlueVine have terms of 6 and 12 months. Flex6 funds are paid back weekly, and Flex12 has a monthly payment option.

Fee Payment Schedules

Factoring fees are due at the time an invoice is paid.

Merchants should note that BlueVine allows payments to be up to two weeks late but applies a 3% late fee for every subsequent week that an invoice goes unpaid. 

If a customer fails to pay, the merchant is responsible for covering the cost.

After an approval period of about 24 hours, merchants can begin drawing on lines of credit.

Money transfers take one to three business days, and invoices may be delayed an additional 24 hours if BlueVine needs to verify the state of a customer’s credit.

Is Kabbage Right For You?

Simple qualification requirements, a fast online application and nearly instant funding attract merchants to Kabbage. 

Emergency Funding

Whether you need a small loan to cover simple expenses or a big payout of cash for an unexpected emergency, this lender has a variety of options.

Large Lines of Credit

Kabbage provides a single loan product in the form of a business line of credit.

Merchants can qualify for between $2,000 and $250,000 based on eligibility, and those merchants can use the money for any costs associated with doing business.

Suitable During Sales Spikes and Slowdowns

Funding is always available, providing a sense of security for companies in industries where sales volumes rise and fall with the seasons.

Marketing campaigns, inventory purchases and timely business investments can be funded with a loan from Kabbage even during times of slower business cash flow. 

Credit lines can also be used to hire extra help, cover gaps in payroll or fund equipment purchases.

Young Businesses

Kabbage works with small business owners who have been running their companies for at least 12 months.

No Credit Score Minimum

No minimum credit score is required, which allows companies in tough spots to get the money necessary to keep going until business picks up again.

However, a merchant must be able to show $50,000 in annual revenue or a minimum monthly revenue of $4,200 or more during the previous three months to qualify.

Fast Payback Periods

Kabbage loans are paid off monthly over 6 or 12 months.

A front-loaded fee structure means merchants pay a higher percentage in the first two months of a six-month loan or the first 6 months of a 12-month loan.

The remaining months require a fee of only 1%. Fees are paid on top of either one-sixth or one-twelfth of the total principal.

Fast Approval Times

The application approval process takes only a few minutes if the Kabbage system finds no difficulties with verification, allowing your funds to be accessed the same day.

Additional information may be necessary for merchants requesting substantial loans.

Kabbage vs BlueVine:
Which Is Best?

Each funding provider has pros and cons you should consider if you’re in the market for a small business loan.

Overall, BlueVine has a lower effective APR on both of its loan products than Kabbage.

However, because BlueVine has additional fees for drawing on the credit line and using wire transfers to receive money, the total cost is contingent on how often you draw cash and on which transfer method you prefer.

Whether you get a low or high fee for Flex6 or Flex12 depends on your qualifications.

Kabbage WinsBlueVine Wins
Wide Range of Credit Lines: As little as $2,000 and as large as $250,000.Large Amounts: Invoice factoring amounts up to $5,000,000.
No Credit Score Minimum: Allows companies in a pinch to apply for financing.Integration: BlueVine is compatible with FreshBooks, Xero and QuickBooks
Lower Fees: Kabbage charges a fee schedule which results in more of the loan being paid back early on in the payback period.Lower APR: Both of its loan products feature lower annual percentage yields when compared to Kabbage.
Fast Funding Timeline: As fast as same day lines of credit issued.Straightforward Payment Structure: No front-loaded fees

Where Kabbage Shines

Although Kabbage requires businesses to be in operation six to nine months longer than BlueVine demands, Kabbage’s requirements are still less stringent. 

It accepts merchants with lower annual revenues but offers flexibility if you can show a qualifying monthly revenue instead.

With no minimum credit requirement, merchants with diverse financial needs and profiles can qualify.

Kabbage doesn’t charge as many individual fees as BlueVine. 

Instead of requiring a draw fee, Kabbage sets up a fee schedule in which more of the cost of the loan is paid at the beginning of the terms.

The amount of this initial fee is based on your financial standing; a stronger financial profile usually means lower fees. In addition, paying off your loan early may save you a small amount depending on the length of your terms and how big a percentage you’re paying at the outset.

If you can’t wait for funding, Kabbage has the fastest application approval and funding delivery times. All information must be easy to verify to receive same-day access to a credit line.

Kabbage features a quick-and-easy application process, good customer service and fast delivery of funds. In less than 10 minutes, you can complete the online application and receive a nearly instant loan decision without submitting reams of documentation.

>> Compare Kabbage vs OnDeck

Where BlueVine Shines

BlueVine’s application process requires a little more in terms of paperwork but is also fairly quick.

The lender’s services link with popular software like FreshBooks, Xero and QuickBooks to make managing invoices easier. Customer service responds promptly when help is needed.

Both Kabbage and BlueVine are flexible when it comes to repayment, offering the option of 6- and 12-month terms for lines of credit depending on your qualifications.

In this case, the best option for your company depends on how strong of a financial picture your business can present at the time of application.

BlueVine wins hands down if you’re in need of a big loan. With invoice factoring up to $5 million, you can fund just about any expense regardless of whether your customers are quick to submit payment.

If you need less than $5,000 for a line of credit, Kabbage can offer funding in amounts as little as $2,000. This can be just enough for a small business looking to get a bit of money to smooth out cash flow without incurring large loan payments.

Kabbage vs BlueVine
Comparison Summary

Still not sure whether Kabbage or BlueVine is right for you? Here’s a quick recap of the best features from each lender.

Kabbage

  • Lower overall qualification requirements, including no minimum credit score
  • Only requires $50,000 in annual revenue to apply
  • Same-day funding available for qualifying merchants

BlueVine

  • Offers both lines of credit and invoice factoring
  • Larger loan amounts available
  • Straightforward repayment structure with no front-loaded fees

When you need working capital right away for your business, a lender like Kabbage or BlueVine can provide cash to cover your expenses or allow you to invest in a limited-time opportunity.

Choose which lender is right for you based on your needs, your qualifications and the age and health of your business.

 


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