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Bluevine vs Kabbage: Which Is Best for Your Business?

Bluevine and Kabbage are two of the most well-known online lenders offering small business lines of credit. Both lenders offer straightforward online applications, appeal to borrowers with less-than-perfect credit, and have excellent customer service. However, there are many differences, as well.

BlueVine vs. Kabbage
Sarah Brooks
Personal Finance Writer and Editor

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Here, we’re comparing and contrasting Bluevine and Kabbage, so you can decide which small business line of credit is right for you.


Quick Comparison

Bluevine Kabbage
Funding Amount $5,000 – $250,000 $2,000 – $250,000
Repayment Terms 6 or 12 months 6, 12, 18 months
Minimum Credit Score 625 640
Minimum Time in Business 6 months 12 months
Lien Required Blanket UCC-1 Lien Blanket UCC-1 Lien
Collateral Unsecured (no collateral) Unsecured (no collateral)
Personal Guarantee Required Yes Yes

Bluevine vs Kabbage Overview

Bluevine Kabbage
Bluevine offers lines of credit (‘LOCs’) to small and medium business models. It opened its doors in 2013 and has provided more than $2 billion in funding to businesses nationwide.

The Bluevine headquarters are in Redwood City, California, and are opening another center in Utah. They also have an office in Ramat Gan in Israel. The facilitated over 155,000 Paycheck Protection Program loans in 2020.
Kabbage was founded in 2008 and offers borrowers business lines of credit. It launched publicly in 2011 and is headquartered in Atlanta, Georgia, with an additional office in San Francisco, California.

Kabbage facilitates over $1 billion each year to medium and small businesses. Kabbage was one of the first large online lenders before more competitors came into the market. As of August 17th, 2020, American Express is the owner of Kabbage.

Bluevine vs Kabbage: Loan Features

Bluevine Kabbage
Term Length 6 or 12 months 6, 12, or 18 months
Repayment Period Monthly or weekly Monthly
Loan Amount $5,000-$250,000 $2,000-$250,000

Bluevine vs Kabbage: Line of Credit

Both Bluevine and Kabbage offer lines of credit up to $250,000 with straightforward online applications. A line of credit gives your business access to funds when you need them. It works similarly to a credit card, allowing you to use funds up to your maximum approved amount, pay them back, and use them again. Businesses can use lines of credit to pay for marketing expenses, purchase new inventory, fund a renovation, and more.

  • Bluevine offers lines of credit from $5,000-$250,000 with rates starting at 4.8%. Repayments are made weekly or monthly over six or 12 months from each draw.
  • Kabbage offers lines of credit from $2,000-$250,000 with six, 12, or 18 month terms. Rates will vary depending on terms, but range from 2-9% for six-month loans, 7.5-18% for 12-month loans, and 15.75-27% for 18-month loans.

Bottom Line: Loan amounts and term lengths are very similar between both Bluevine and Kabbage. To determine which lender is right for you, we’re going to have to look at interest rates and minimum qualification requirements.


Bluevine vs Kabbage: Interest Rates and Fees

Bluevine Kabbage
Interest Rates 4.8% and up 6-month loans: 2-9%

12-month loans: 7.5-18%

18-month loans: 15.75-27%
Origination Fees No No
Maintenance Fees No No
ACH Transfer Fees No No
Late Payment Fees Yes Yes

Neither Bluevine nor Kabbage charge origination fees, prepayment penalties, maintenance fees, or ACH transfer fees. They do both charge late payment fees, though. Bluevine charges up to 5% of the missed repayment and the interest that has accrued. Kabbage charges flat fees - $10 for balances between $35 and $500, $35 for balances between $500 and $5,000, and $100 for balances greater than $5,000.

Bluevine rates start at 4.8%, whereas Kabbage charges a flat monthly percentage based on your loan term. Both companies charge higher rates than you may find at a bank or credit union, but funding times are typically quicker and the requirements to qualify are not as stringent. To get the best rates with both lenders, you’ll want to make sure your credit score is in good condition.

Here’s how you can improve your business credit >>

Bottom Line: Kabbage offers lower starting rates than Bluevine, making them our top pick when it comes to interest rates and fees.

kabbage vs bluevine

Bluevine vs Kabbage: Loan Requirements

Bluevine Kabbage
Minimum Credit Score 625 640
Minimum Revenue $10,000 per month $3,000 per month
Time in Business 6 months 12 months

Bluevine Requirements

To qualify for a line of credit from Bluevine, you’ll need to be in business for at least six months, have a minimum credit score of 625, and have $10,000 or more per month in revenue.

Kabbage Requirements

To qualify for a Kabbage line of credit, you’ll need to be in business for at least 12 months, have a minimum credit score of 640, and have $3,000 or more in monthly revenue.

Bottom Line: Kabbage has a higher credit score and time in business requirement, but their monthly revenue requirement is much lower. If your business is not making Bluevine’s minimum requirement of $10,000 per month, we recommend Kabbage as your lender of choice.


Bluevine vs Kabbage: Loan Application Process

Bluevine Kabbage
Application Complexity Low Low
Approval Time As little as five minutes Varies
Funding Time As soon as same day from loan approval In a timely manner

Bluevine and Kabbage offer straightforward, online applications that take just a few minutes to complete. Typically, the initial application will ask basic questions about your business, your credit history, and your monthly revenue. Kabbage has you connect your business bank accounts to your application so they can give you a decision in real-time.

Bluevine can give you an initial decision in as little as five minutes. Both companies, however, may need you to provide additional paperwork prior to final approval. Additional paperwork may include, but is not limited to:

  • Photo ID
  • Personal and business taxes
  • Business bank statements
  • Business license and registration
  • Business plan, including purpose of the loan

During the final application stage, Bluevine and Kabbage will do a hard-pull on your credit, which will impact your score. If approved, Bluevine offers same-day funding. Kabbage does not state any specific funding times, but does say it will take place in a timely manner.

Bottom Line: Bluevine is our pick for ease of application and fast funding times. If you need your line of credit as soon as possible, we recommend applying with Bluevine in hopes of a shorter funding time.

bluevine vs kabbage

Customer Support

Bluevine offers customer support via phone Monday through Friday from 8 AM to 8 PM EST. You can also contact them by filling out their online form, and a representative will be in touch shortly.

Kabbage offers customer support from 8 AM to 9 PM EST Monday through Friday. You can also email them if your question isn’t urgent.

Both companies offer online resources, guides, and FAQ pages to help answer common questions by borrowers.

Bottom Line: Customer support is equal between the two companies, with the exception of Kabbage being available by phone one hour later than Bluevine. Between the two, we call it tie!


User Reviews

Bluevine Kabbage
Trustpilot (USA) 4.4 stars (7,000+ reviews) 3.1 stars (6,700+ reviews)
Consumer Affairs 2.2 star rating 3.9 star rating
BBB A+ rated (4.03 Star rating) A+ rated (3.69 Star rating)

Bluevine has 4.4 out of 5 stars on Trustpilot, with 85% of the reviews being “great” or “excellent.” Positive reviews revolve around the speed and efficiency of the application process, exceptional customer service, and funds being made available within the stated time. Negative reviews focus on the banking side of Bluevine as opposed to their line of credit, and customers have complained about technical issues with the website and mobile app.

Kabbage has 3.1 out of 5 stars on Trustpilot. While their score is lower overall, a whopping 91% of reviews are either “great” or “excellent.” Good reviews state the company has an easy application process, excellent and attentive customer service, and quick decision and funding times. Like Bluevine, the negative reviews are more focused on Kabbage’s business checking account, which is no longer being offered.

Bottom Line: Both Bluevine and Kabbage have great customer reviews overall, and they both have an A+ rating on the Better Business Bureau.


When to Choose Bluevine

If you’ve been in business for at least six months, but less than one year, we recommend Bluevine. Kabbage requires businesses to be in operation for a minimum of 12 months, eliminating many new businesses in need of funding.

bluevine vs kabbage

When to Choose Kabbage

Kabbage is the winner for businesses with fair monthly revenues, as Kabbage requires a minimum of $3,000 per month in order to qualify. Many lenders, including Bluevine, require a minimum monthly revenue of $10,000, which can make it difficult for businesses in lower-profit industries to get the funding they need.

kabbage vs bluevine

Conclusion

In truth, there is little separating Bluevine and Kabbage. Both operate in the same space with similar rates, and both have super smooth application processes. Kabbage has lower monthly revenue requirements, but slightly higher rates. Bluevine offers lower rates, but has higher monthly revenue requirements. It’s best to take a close look at your unique business to make the right decision when it comes to choosing between Bluevine and Kabbage.

Frequently Asked Questions(FAQ)

Is Bluevine legit?
Yes, Bluevine is a legitimate business you can rely on for a small business line of credit. They’ve funded small businesses more than $2 billion since their opening in 2013, have an A+ rating with the BBB, and are continually receiving awards and recognition for their industry-leading technology.
Is Kabbage legit?

Kabbage is backed by American Express and is a legitimate lender you can trust. The company opened in 2008 and was acquired by American Express in 2020. Since their opening, they’ve funded more than $8 billion to small businesses nationwide.


How do I qualify for a small business line of credit?
Most lenders want to see a business history of at least six months, a minimum credit score of 600, and annual revenues of $100,000. For Bluevine specifically, you’ll need a credit score of 625, six months in business, and $10,000 in monthly revenues. For Kabbage, you’ll need a credit score of 640, 12 months in business, and $3,000 per month in revenue.
Does my credit score matter?

While Bluevine and Kabbage do take other factors regarding your business into consideration, your credit score does need to meet the minimum requirements. Also, you’ll get a better interest rate on your loan if your credit score is in good to excellent condition, so it’s worth working on throughout the life of your business.