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OnDeck vs. Kabbage: Who is the Best Small Business Lender?

Both OnDeck and Kabbage are two of the best online lenders for businesses, offering both small business loans and lines of credit. Discover the services and main advantages of each one of these lenders in this OnDeck vs. Kabbage comparison.

OnDeck vs. Kabbage
Sarah Brooks
Personal Finance Writer and Editor

Many or all of the products featured here are from our partners who compensate us. This may affect which companies we write about and where the company appears on a page. However, any analyses, or reviews expressed in this article are those of the author’s alone, and have not been approved or endorsed by any partner.

OnDeck vs Kabbage Overview

OnDeck aims to provide affordable loans for small businesses. The company was founded in 2006 and has helped thousands of small companies ever since. According to its estimate, every $1 it lends contributes to an average increase of $2.31 in sales for the borrowers. 

Since its inception, OnDeck has disbursed more than $13 billion and counting. The company offers two different loan products: credit lines and term loans. Their repayment terms are flexible and recurrent borrowers enjoy different loyalty awards.
Kabbage has been on the market since 2008. This service stands out from the crowd for its fair monthly income requirements. Rather than requiring $10,000 or more in monthly income, Kabbage requires just $3,000 per month. 

Kabbage provides credit lines for businesses along with other financial services, such as invoice processing and credit card payment. In 2020, Kabbage was acquired by American Express. Kabbage has been offering small businesses more than $1 billion per year in funding.

OnDeck vs Kabbage: Loan Features

Term Length6, 12, or 18 monthsLine of credit: 12 months
Term Loans: Up to 24 months
Repayment PeriodMonthlyLine of credit: Weekly
Term Loans: Daily or weekly
Interest Rate6-month term: 2-9%
12-month term: 7.5-18%
18-month term: 15.75-27%
29.9% and up
Loan Amount$2,000 – $250,000Line of credit: $6,000 - $100,000
Term Loans: $5,000 - $250,000

OnDeck vs Kabbage: Line of Credit

OnDeck offers lines of credit up to $100,000 with a 12-month repayment term that resets after each withdrawal. This solution allows you to easily handle cash flow problems but comes with higher interest rates. The repayments are made weekly, and are made automatically. The APR range starts at 29.9%, and OnDeck does not charge any prepayment fees. Businesses can open credit lines of a minimum of $6,000 and a maximum of $100,000.

Kabbage also offers lines of credit through a straightforward application process. The term of the loan is six, 12, or 18-months, and payments are made monthly. The company charges a monthly fee depedning on the length of your loan. For six-month terms, fees are 2-9% of the loan, 12-month terms are 7.5-18%, and 18-month terms are 15.75-27%. Kabbage lines of credit range from $2,000 to $250,000.

Other Loan features

OnDeck has a relatively comprehensive portfolio. Besides credit lines for businesses, the company also offers term loans. Term loans have a loan term of up to 24 months and can be repaid daily or weekly. The amount of money you can borrow varies between $5,000 and $250,000 and the APR starts at 29.9%.

Kabbage, on the other hand, only focuses on lines of credit. However, this company does have some extra services to offer. Their payment services include invoice processing and credit card payment. The company provides its own online payment platform which includes online payment processing tools and invoicing tools. Both aim to help small businesses get paid faster.

Bottom line: Kabbage is our pick if you need a small business line of credit, due to their straightforward fee structure and higher loan amount. If you’d prefer a short-term loan, though, our choice is OnDeck.

OnDeck vs Kabbage: Interest Rates and Fees

Origination FeesBetween 0% - 4%No
Prepayment FeesNoNo
Late Payment FeesMay apply$10 for outstanding balances between $35 and $500  
$35 for outstanding balances between $500 and $5,000 
$100 for outstanding balances over $5,000
Maintenance Fees$20 per monthNo
Interest Rates29.9% and up6-month terms: 2-9%
12-month terms: 7.5-18%
18-month terms: 15.75-27%

OnDeck's loans come with higher interest rates compared to some of its competitors, but getting additional funding allows you to access discounts. Repayment terms are relatively short and their fees are low. However, not all of them (e.g. late payment fees) are disclosed. The origination fees vary between 0% and 4%, and the maintenance fees are $20 per month. OnDeck offers different rewards for loyal customers. If you are a recurrent customer, you can enjoy better terms and lower interest rates. The company will also waive some of the loan fees for loyal customers.

Kabbage, on the other hand, doesn’t require origination or prepayment fees. Their interest rate varies depending on the term of the loan. The company does not charge any maintenance fees, and late payment fees are disclosed. For less than $100, the fee is $10. For balances between $100 and $5,000 the fee is $35, and balances of more than $5,000 come with a late payment fee of $100. Kabbage also offers different discounts.

Bottom line: Kabbage has no origination fees, no maintenance fees, and a lower interest rate than OnDeck, making them our pick for best overall loan costs.


OnDeck vs Kabbage: Loan Requirements

Minimum Credit Score600640
Minimum Revenue$100,000$3,000 monthly
Time in Business12 months12 months
OtherNo bankruptcy during the past two yearsThey examine revenue consistency and cash flow

OnDeck Loan Requirements

OnDeck requires a minimum credit score of 600, which is lower than some other online lenders. Companies also need to have been in business for the past 12 months. The minimum annual revenue requirement is $100,000. Additionally, the majority of business owners, whose personal credit score will be taken into consideration, should have no bankruptcy for two years before submitting their application.

Kabbage Loan Requirements

To qualify for a business line of credit from Kabbage, you’ll need a minimum credit score of 640. Just like its competitor, Kabbage also requires applicants to have a minimum period of 12 months in business before they apply and a minimum monthly revenue of $3,000. Additionally, applicants are also assessed based on their cash flow and revenue consistency and they need to have a business checking account.

Bottom line: Kabbage is the winner due to its fair monthly revenue requirements of $3,000.


Loan Application Process

Application complexityLowLow
Approval timeStarting within a few minutesVaries
FundingAs soon as the same day as loan approvalIn a timely manner

To apply for an OnDeck loan, you need to provide a few details about yourself and your business and submit your application. It takes a few minutes, and you can also apply online or via phone. Your application is reviewed immediately and if approved, you can get instant access to credit lines and loan funds within the same business day.

Kabbage’s online application process only takes around 10 minutes and involves filling out an online application form. You may get a decision within just a few minutes of applying, but additional documents may be required. Once approved, it takes a few business days to receive the funds.

Bottom line: Both companies offer a quick application process, but OnDeck wins because it can provide funds instantly.


Customer support

OnDeck and Kabbage both offer fast and reliable customer support. Overall, OnDeck enjoys positive customer feedback for this reason. You can reach out to their support department via live chat, phone, or email. Moreover, once you start working with this company, you get a dedicated personal representative for the lifetime of your loan.

Kabbage doesn’t lag behind in terms of customer support, either. It offers help by email and phone, as well as a help center where you can find different useful resources and FAQs.


User Reviews

Both companies enjoy relatively good user reviews and ratings on different platforms. Kabbage currently has a 3.2 rating on Trustpilot where it has close to 7,000 reviews. Positive reviews mention the excellent service and ease of the process. Negative reviews focus on poor communication and a complicated application. Keep in mind, though, that only 6% of the reviews currently are ranked as “poor” or “bad.”

OnDeck seems to enjoy better customer appraisal. The company has an outstanding 4.7 out of 5 stars on Trustpilot. However, it only has fewer reviews than Kabbage at just over 3,500. Most customers praise the company’s support service and easy application process. Negative reviews, which account for less than 4% of total reviews, focused on high fees and slow response times.

Bottom line: OnDeck has a better rating on Trustpilot and a higher percentage of positive reviews, making them our top pick.


Perks and Bonuses

Our favorite perk of OnDeck is their SMART Box tool which gives borrowers full transparency of their loan product prior to signing. Metrics are easy to understand, but you can always reach out to your OnDeck advisor for further clarification. Other perks of OnDeck include automatic payment enrollment and an easy-to-navigate online portal.

Perks and bonuses of Kabbage include automatic enrollment in Autopay and an app that allows you to withdraw funds, manage your account, and apply for additional services. While Kabbage doesn’t state that they offer a grace period, they do say they’re willing to work with you if you can’t make a payment. They recommend contacting them immediately to come up with a solution.


When to Choose OnDeck

OnDeck is a good option for:

  • Borrowers who need fast funding - money can be available the same day you’re approved for a loan
  • Borrowers who want flexible payment options
  • Those who seek a dedicated representative and great customer support
  • Companies who want to choose between a line of credit and a term loan


When to Choose Kabbage

Kabbage is a good loan provider for:

  • Borrowers that need a line of credit up to $250,000
  • Borrowers with minimum monthly revenues of $3,000
  • Those who are looking for flexible monthly repayments as the terms are 6, 12, or 18 months
  • Applicants who don’t have time to waste with complicated application process


Bottom Line

OnDeck and Kabbage are good options for small business loans, but both have their pros and cons. While OnDeck has higher interest rates, it provides fast funding and different types of loans. Kabbage, on the other hand, only focuses on lines of credit, but its biggest highlight is that it accepts applicants with decent monthly revenues (as opposed to high).

For its excellent support, monthly revenue requirements, good ratings, total overall cost, ease of use, and speed,we choose Kabbage as the overall winner, especially for businesses that need a consistent loan.

Frequently Asked Questions (FAQ)

Is OnDeck legit?

OnDeck has been on the market since 2006 and has provided funding of more than $13 billion ever since. This is a legit, honest, and reliable company as you can discover from its great Trustpilot reviews.

Is Kabbage legit?

Kabbage is also a legit lender. The company has been on the market since 2008 and in 2020, it was acquired by one of the most renowned players in the financial sector – American Express.

How to get approved for an OnDeck loan?

To get approved for a loan through OnDeck, your business needs to have been active for the past 12 months, have an annual revenue of at least $100,000, and your credit score should be 600 or above.