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Fundbox vs. Kabbage: Which Lender Is Best?

If you’re looking for a small business loan or line of credit, you've probably come across two of the biggest names in the industry: Fundbox and Kabbage. Here, we’re breaking down the details of each, so you can decide which small business loan is right for you.

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Personal Finance Writer and Editor

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What is Fundbox?

What is Kabbage?

Funbox was founded in 2013 and is one of the most renowned alternative lenders on the market. The company provides a simple and fast application system that enables you to find out in a few minutes whether you can get a loan or not.

Fundbox offers two main products: lines of credit and term loans up to $150,000. If your application gets approved, funds can be available as soon as the next business day.
Kabbage was founded in 2008 and acquired by American Express in 2020. Kabbage stands out among the rest because of their decent monthly revenue requirements, making them ideal for businesses with fair income.

Kabbage offers small business owners a line of credit up to $250,000. The application process is straightforward, and you can get a funding decision within minutes.

Fundbox vs Kabbage: Loan Features

Term Length
Line of Credit: 12 or 24 weeks
Term Loans: 24 or 52 weeks
6, 12, or 18 months
Repayment Period
Loan Amount
$1,000 – $150,000
$2,000 – $250,000

Fundbox vs Kabbage: Line of Credit

Both Fundbox and Kabbage offer lines of credit with relatively low application requirements. A line of credit is a revolving type of loan similar to a credit card. You borrow funds up to your approved loan limit, pay them back, and can use them again. Lines of credit can help businesses cover working capital expenses such as cash flow issues, inventory, or marketing projects.

  • Fundbox: Lines of credit with terms of 12 or 24 weeks. Fees start at 4.66% for 12-week terms and 8.99% for 24-week terms. The minimum amount companies can get is $1,000 and the maximum amount is $150,000.
  • Kabbage: Lines of credit with flexible terms of 6, 12, or 18 months. This payment period is longer than what you get with Fundbox (12 or 24 weeks) and the payment is made monthly rather than weekly. The interest rate is charged as a monthly fee: 2-9% for 6-month loans, 7.5-18% for 12-month loans, and 15.75-27% for 18-month loans.

Both companies will automatically withdraw the necessary payments from the business bank account you register during the application.

Fundbox vs Kabbage: Short-term Loans

A short-term loan is a lump sum of capital that you pay back monthly, typically over the course of one to two years. These loans may require you to sign a personal guarantee, which states that if your business can’t repay the loan, you will be held responsible.

Kabbage only offers lines of credit, but Fundbox gives you the option of a line of credit or a short-term loan. A short-term loan from Fundbox ranges from $1,000 to $150,000 with a 24 or 52 week repayment term. Interest rates start at 8.33% for 24-week terms and 18% for 52-week terms. There are no prepayment or maintenance fees for their loans, but you might have to pay late payment fees. These fees will be added at the end of your payment plan.

Bottom line: Fundbox offers more types of small business loans compared to Kabbage.


Fundbox vs Kabbage: Interest Rates and Fees

Origination Fees
Prepayment Fees
Maintenance Fees
Late Payment Fees
Yes$10 for balances between $35 and $500

$35 for balances between $500 and $5,000

$100 for balances greater than $5,000
Interest Rates and Terms
4.66% for 12-week terms and 8.99% for 24-week terms for a line of credit

8.33% for 24-week terms and 18% for 52-week terms for term loans
6-month term: 2-9%

12-month term: 7.5-18%

18-month term: 15.75-27%

Both companies charge fees as a percentage of the loan you get. Fundbox charges a weekly fee, while Kabbage requires monthly payments.

In terms of Annual Percentage Rates (APR), both companies are slightly more expensive than traditional lenders. Both lenders apply a transparent policy and will tell you exactly how much interest and what fees you have to pay before each line of credit draw you make.

Bottom line: Kabbage appears to offer lower starting rates than Fundbox. However, your rate is highly dependent on your credit score. The higher your score, the better the rate you’ll receive with both companies.


Fundbox vs Kabbage: Loan Requirements


Minimum Credit Score
Minimum Revenue
$100,000 annually
$3,000 monthly
Time in Business
6 months
12 months
Other factors include customers’ average monthly revenues and transaction volume
They also examine revenue consistency and cash flow


Fundbox Requirements

To qualify for a loan or line of credit from Fundbox, you need to have a credit score of at least 600, show at least $100,000 in annual revenue, and be in business for six months or more.

Kabbage Requirements

To qualify for a Kabbage line of credit, borrowers need to have a minimum credit score of 640, be in business for at least one year, and meet the monthly revenue requirement of $3,000.

Bottom line: Both companies have flexible eligibility criteria. Kabbage has a lower monthly revenue requirement, but Fundbox accepts borrowers with a lower credit score. You’ll need to assess your specific business to determine which lender is right for you.


Fundbox vs Kabbage: Loan Application Process

Application Complexity
Quick and easy
Approval Time
As little as three minutes
As soon as the next business day
In a timely manner

Both Fundbox and Kabbage allow you to apply online and they use an automated approval process. After you fill out the form on the website and submit it, you only need to wait a few minutes to find out if you got approved. Keep in mind, though, that both companies may require additional documentation before making a lending decision.

In order to complete your application, you will need to link your business bank account to the platform. After the application is analyzed and approved, funds will be released as soon as the next business day for Fundbox and within a few business days for Kabbage.

Bottom line: Both Fundbox and Kabbage offer straightforward online applications and approval times. If you need your funds as quickly as possible, though, we recommend Fundbox since their funding time can be made as soon as the next business day.


Customer Support

Fundbox and Kabbage offer excellent customer support services. With Fundbox, you can reach a live customer service representative by phone Monday through Friday from 8 AM to 8 PM EST, or you can reach out to their support staff via email. Additionally, Fundbox offers a robust help center to answer questions, provide tech support, and more.

You can reach a Kabbage representative Monday through Friday from 8 AM to 9 PM EST, or send an email anytime to Like Fundbox, Kabbage provides a help center to answer common questions, provide information on fees, and more.

Bottom line: Both companies offer similar means of customer support and online help centers. We call it a tie for customer support!


User Reviews

Both Fundbox and Kabbage have a mix of positive and negative reviews on customer review sites. Fundbox has 4.8 out of 5 stars on Trustpilot, and Kabbage has 3.2 out of 5 stars.

Positive reviews for Kabbage include the ease of the application process, great customer service, and timely funding. Negative reviews tend to revolve around the banking side of Kabbage, but some reviewers also state the customer service was less-than-stellar.

Praises for Fundbox include great support staff, a smooth and simple process, and flexible repayment terms. Negative reviews focus on slow response times and poor IT help.

Bottom Line: Fundbox ranks higher on Trustpilot, having both more reviews total and more positive reviews overall.


Perks and Bonuses

The two biggest perks of Fundbox are the early prepayment discount and the FlexPay feature. If you pay your loan off early, Fundbox not only will not charge you, but they’ll also waive all the remaining fees on the weeks you did not use. FlexPay gives borrowers a three-day grace period to make their line of credit payment at no extra charge.

Kabbage perks include an app that allows you to apply for funds and withdraw the amounts you need, and enrollment in their Autopay system, which allows Kabbage to automatically collect your payment each month. This helps simplify and streamline your business financing needs and makes it so you don’t need to worry about missing a payment.


When to Choose Kabbage

Kabbage is a good option for borrowers who:

  • Have decent monthly revenues, as their minimum is just $3,000 per month
  • Want to be able to apply either online or by phone
  • Seek a dedicated representative and great customer support
  • Are in need of more than $150,000
  • Want flexible daily or weekly payments
  • Have been in business for at least one year


When to Choose Fundbox

Fundbox may be the best option for small business owners who:

  • Have a credit score of 600 or more
  • Would like to choose between a loan and a line of credit
  • Are looking for flexible monthly repayments, as the terms are 6, 12, or 18 months
  • Have been in business for at least six months
  • Are in need of no more than $150,000


The Bottom Line

Both companies offer a streamlined application with low requirements for approval. We recommend Kabbage for businesses with decent monthly revenues ($3,000 per month minimum). Many online lenders require annual revenues of $250,000, making Kabbage the best option for small businesses that aren’t quite there yet.

If your annual revenue is at least $100,000 and you’ve been in business for six months or more, we recommend Fundbox. Fundbox offers both small business loans and lines of credit, and they rank higher in terms of customer service.

You can’t go wrong with either option, so take a close look at your business credentials and make a decision based on your specific needs.

Frequently Asked Questions (FAQ)

Is Fundbox legit?

Fundbox is a legitimate company you can safely rely on. It has an A+ rating with the Better Business Bureau (BBB) and 4.58 stars out of 5 on their website. The company has helped more than 300,000 small businesses since 2013, the year it was founded.

Is Kabbage legit?

Kabbage is also a legit and safe company. The platform is secured, and you can rest assured your information will remain confidential. Kabbage was founded in 2008. It has provided more than $1 billion in working capital funds each year. In 2020, the company was acquired by American Express.

How long does Fundbox take to process term loans?

According to the information on the company’s website, funds can be available as soon as the next day.

How to get approved for a Fundbox loan?

It’s not hard to get approved for a Fundbox loan if you have a credit of at least 600, you have been in business for at least 6 months and you meet the minimum revenue requirements.