Bluevine and Kabbage are two of the most well-known online lenders, for a myriad of different reasons. At first glance, there could be little separating the two. But when you get down to it, there are significant differences between lenders in terms of their rates, customer service, loan offerings, penalties, and more.
We investigated these two lenders in-depth to tell you exactly where the differences and similarities lie.
For a straight review comparison, this guide focuses mainly on the line of credit. However, Bluevine also offers invoice factoring and the typical term loan.
Table of Contents
- Short on Time? Quick Comparison
- Differences Between Bluevine and Kabbage
- Bluevine vs Kabbage Overview
- Kabbage In Depth
- Bluevine In Depth
- Kabbage and Bluevine Loan Offerings
- Rates and Fees Comparison
- Minimum Qualifying Criteria
- Social Proofs and Customer Feedback
- Underwriting Process Compared
- Application Process Compared
- Post Application Process Comparison
- Similarities Between Bluevine and Kabbage
- Bluevine Advantages and Disadvantages
- Kabbage Advantages and Disadvantages
- Additional Bluevine Products and Services
- Additional Kabbage Products and Services
- Customer Service Comparison
- Bluevine Reviews vs Kabbage Reviews
- Bluevine is Best For…
- Kabbage is Best For…
- When to Use Bluevine
- When to Use Kabbage
- How to Choose Between Kabbage and Bluevine
- When Not to Use Either Bluevine or Kabbage
Short on Time? Quick Comparison
|Revolving Line of Credit||Yes||Yes|
|Times in Business||7 Years||11 Years|
|Interest Rate||0.8% per
|1.5% per month starts.|
|Expected APR||18% – 86%||18% – 120%|
|Loan Issuer||Celtic Bank||Celtic Bank|
|Funding Amount||$5,000 – $250,000||$2,000 – $250,000|
|Repayment Terms||6 or 12 months||6, 12, 18 months|
|Minimum Credit Score||600 (LOC)
530 (Invoice Factoring)
|None (540 recommended)|
|Minimum Applicant Time in Business||6 Months (LOC)
3 Months (Invoice Factoring)
|12 months (Less than $100,000 – 36 months otherwise)|
|Minimum Annual Revenue||$100,000||$50,000|
|Lien Required||Blanket UCC-1 Lien||Blanket UCC-1 Lien|
|Collateral||Unsecured (no collateral)||Unsecured no collateral)|
|Personal Guarantee Required||Yes||Yes|
|Application Speed||5 Minutes||10 Minutes|
|Speed of Fund Transfer||24 Hours||24 Hours|
Differences Between Bluevine and Kabbage
The primary differences between Bluevine and Kabbage are as follows:
- Bluevine offers invoice factoring alongside the line of credit.
- Kabbage has lower requirements for qualification in comparison to Bluevine.
Aside from this, they are largely the same. Bluevine tends to have lower rates, but not by a huge margin. Kabbage also offers additional products and services such as Kabbage Insights and Kabbage Payments.
Keep in mind that Bluevine will review each draw on its line of credit product. This means that if you rack up additional debt, then Bluevine might refuse your draw on the line. This is not the case with Kabbage. With Kabbage, the line is yours to use as you see fit.
Bluevine vs Kabbage Overview
Bluevine offers lines of credit (‘LOCs’) to small and medium business models. It opened its doors in 2013 with 3 initial founders – Eyal Lifshitz, Nir Klar, and Moti Shatner. 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 (Kabbage, Inc) was founded in 2009 by Rob Frohwein, Kathryn Petralia, and Marc Gorlin. It launched publicly in 2011 and has its headquarters in Atlanta, Georgia, with an additional office in San Francisco, California. Kabbage facilitates over $1 Billion each year to medium and small-sized businesses. It has an office in the UK. 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, Inc.
Kabbage In Depth
Kabbage has more of an international presence and a long-standing in comparison to Bluevine. It has offices in the UK, US, and Australia, and a large list of financial backers including:
- Reverence Capital Partners
- SoftBank Capital
- Thomvest Ventures
- Mohr Davidow Ventures
- BlueRun Ventures.
- Santander InnoVentures,
- Lumia Capital,
- David Bonderman,
- Warren Stephens
- UPS Strategic Enterprise Fun
- TriplePoint Ventures
Kabbage has been listed in Forbes Magazine’s Top 100 Most Promising Companies for Two sequential years (2014 and 2015). It was also listed as one of the most innovative companies in 2013 by ‘Fast Finance’. It was an initial disruptor in the online space where many lenders now proliferate. In late 2016, Kabbage was included among the Forbes FinTech 50 for 2016, the 2016 Fintech 100 from KPMG and H2 Ventures, and Glassdoor’s Best Places to Work. In 2018, it was ranked by Inc as one of the best places to work.
Kabbage suspended its services in March 2020 to handle COVID PPP applications. This was a little bit of a rocky time for Kabbage. They did not make the same kind of adjustments in comparison to other companies.
Not due to a flaw in their process, as such. It’s just that because Kabbage is completely automated and algorithmic, it was harder for them to adapt to changes. To let people off on payments would upset the entire automated model – it could not be changed as the ripple effects could have led to undue risk. The downside of this was many negative complaints on Trust Pilot and other review sites.
But this is certainly not the end of Kabbage. Far from it – the lender has a rich history and is still one of the best around. It has launched several products and services as a pioneer in the online lending space, especially in the past 5 years. The Kabbage card was introduced in 2015, making it easier for businesses to transact from their account directly.
Perhaps their most notable contribution came in the year 2016. They were a founding member of the Innovative Lending Platform Association (ILPA) which unveiled the Smart Box comparison tool. The tool makes it far easier for applicants to see exactly what they would be paying in fees across different lenders. This is especially significant in an industry notorious for misleading customers with hidden fees.
In 2019, Kabbage launched Kabbage Payments, allowing zero-fee invoicing for small businesses along with customized payment links. Earlier in the same year, they launched the Kabbage Small Business Revenue Index to analyze the revenue of small businesses across various US states. Kabbage Insights is an additional tool offering cash flow prediction patterns for small businesses.
In response to economic strains caused by COVID-19, Kabbage launched helpsmallbusiness.com, enabling anyone in the U.S. to purchase an online gift certificate from participating small businesses. The financial technology company is partnered with Stripe, Xero, Sage, Mastercard, Quickbooks, and many other international heavyweights.
Bluevine In Depth
Bluevine has less of a history than Kabbage but still has an incredible amount on offer. According to the Bluevine homepage, they have served over 125,000 business owners and facilitated nearly $6.5 Billion in funds. Two of the three founding members (Eyal Lifshitz and Nir Klar) are still with the company, which is always a good sign.
What’s great about Bluevine is that they are super transparent about their fees and there are no hidden charges. At all.
While Kabbage is also quite clear about its fees, many are unhappy with the way that the loan is front-loaded for the first two months. It means that when you take out a loan, you are automatically paying a disproportionate amount back immediately, at a time when you need the money most. This infuriates many applicants. Though, to be fair, they should simply have read the terms and conditions more clearly. This is not a secret and is openly advertised.
Bluevine does not have a list of accolades or business partnerships in comparison to Kabbage. However, their network of associates includes:
- 83 North
Kabbage and Bluevine Loan Offerings
Both Bluevine and Kabbage offer unsecured small business lines of credit up to $250,000, with repayment terms of 6 or 12 months (Kabbage further offers an 18-month option). Bluevine’s minimum loan amount is $5,000, whereas Kabbage can fund loans as low as $2,000.
Both providers have monthly payment options (you can also pay weekly with Bluevine) and require a personal guarantee along with a blanket UCC filing. The loans are unsecured, meaning no collateral is required upfront.
Kabbage only offers the business line of credit, while Bluevine offers the Line of Credit and invoice factoring. Bluevine also offers the term loan, but this is currently suspended amidst the COVID-19 pandemic where it switched to PPP loans only. It currently offers the Line of Credit and Invoice Factoring.
|Line of Credit||Yes||Yes|
|Merchant Cash Advance||No||No|
Rates and Fees Comparison
When it comes to online lenders, the fees are paramount, so be sure you read the fine print. Or simply understand this simple paragraph.
Kabbage charges between 1.5 – 10% of the monthly principal for its LOC. The repayments are weighted to the first 2 months of payment with terms between 6 – 12 months. The cited APR rate for Kabbage is 24% – 99%. Keep in mind that Kabbage keeps an eye on your cash flow, so if your business is starting to go sour, it might reduce your borrowing limit or cut off your credit line entirely. If this happens, you’ll still have to repay any outstanding debt you have.
Bluevine has no maintenance fees. The basic interest rate is 4.8%. The estimated APR is between 15 – 78%, depending on your loan. You can repay the loan in weekly or monthly installments. The simple 4.8 % interest rate is a lot easier for customers to understand than the 1.5% – 10% range offered by Kabbage.
All things considered, Bluevine fees are lower than Kabbage. The fact that Kabbage repayments are frontloaded to the first 2 months is a major disadvantage and something that can annoy business owners. Remember that these are merely ranges. With all financial providers, the rates you get will depend on your circumstances. Make sure you understand interest rates in detail and what the fees are with each provider.
|APR Range||15% – 78%||24% – 99%|
|Base Interest Rate||4.8%||1.5 – 10%|
|ACH Transfer Fees||No||No|
|Wire Transfer Fees||$15||$15|
Minimum Qualifying Criteria
The qualifying criteria for Kabbage are lower in comparison to Bluevine. Kabbage is one of the easiest online lenders to qualify with, due to its streamlined loan application process. You can simply connect your accounting software to the Kabbage platform and it will tell you whether you qualify for a loan or not.
While Kabbage is the clear winner for the Line of Credit, Bluevine also offers invoice factoring with ultra-low loan minimum criteria – a 530 FICO credit score, 3 months in business, and $10, 000 in monthly revenue (equivalent to $100,000 in annual revenue). For the Bluevine Line of Credit, you will need:
- 600+ personal credit score.
- 1 year in business.
- $10,000+ in monthly revenue.
- Not available in North Dakota, South Dakota, or Vermont.
|Minimum Credit score||600 (LOC)
530 (Invoice Factoring)
|None (540 recommended)|
|Minimum Annual Revenue||$10,000 (monthly)||$50,000 (annually)|
|Minimum Time In Business||6 months||12 months below $100,000
36 months above $100,000
Kabbage got hit incredibly hard with the COVID 19 pandemic. Their customer ratings have fallen significantly. At present, they have a 1.6-star rating on Consumer Affairs, the platform that consumers go to when they are really angry. Most of these reviews are recent, as Kabbage has had a difficult time handling its affairs in a post COVID era.
What happened (according to many reviews) is that Kabbage took on a load of PPP applications, notified customers that it was processing them, and failed to process them in time. The result was that small business owners were misled and out of pocket.
It is a classic example of how not to run a business. They told customers they had been approved, and later told them it was denied, without giving an appropriate explanation. Still, Kabbage has a decent 4.2 stars on Trustpilot, and this figure was a little higher before taking a hit this year.
Bluevine, on the other hand, has not run into any such difficulties (though, to be fair to Kababge, this is the only time they have had such a bad time in terms of customer service). Bluevine has a 4.3-star rating on Trustpilot and similar positive reviews on other Trustpilot sites (in Canada, Ireland, etc). They are very active on social review sites and take a proactive approach to customer service.
|Trustpilot (USA)||4.3 stars (2,400 reviews)||4.2stars (6,200 reviews)|
|Consumer Affairs||3.6 Star rating||1.6 Star rating|
|BBB||A+ rated (4.03 Star rating)||A+ rated (3.69 Star rating)|
Underwriting Process Compared
For invoice factoring applicants, Bluevine will consider the quality of your customers during the underwriting process. Even more than your credit history, Bluevine will evaluate the creditworthiness of your customers during your invoice factoring application. Bluevine will also want to see that the outstanding invoice is more than $500 with a due date at least one week (but less than 13 weeks) away.
Kabbage built its reputation on being able to underwrite loans quickly based on connected accounting software with 3 months of data. It’s where Kabbage shines through. It creates value with its smart technology by providing loans to applicants that would typically be rejected from banks and other institutions.
While Green Dot Bank (also known as GoBank and Bonneville Bank) is responsible for bank accounts, it is Celtic Bank (registered in Utah) that is responsible for issuing loans though Kabbage Inc. Bluevine loans are also underwritten by Celtic Bank, Utah.
|Underwriting Process Based On||Historic income and forecasted expenses as per connect accounting systems.||LOC process unclear, but presumably similar to the Kabbage process. Invoice factoring is based on the quality of your customers.|
|Underwriting Bank||Celtic Bank, Utah||Celtic Bank, Utah|
|Checking Account Bank||Green Dot Bank||The Bancorp Bank|
|Underwriting Process||Fully Automated||Fully Automated|
Application Process Compared
The Kabbage application process is completed online. Kabbage will ask for information about you and your business. You will also have to give the lender read-only access to your business bank account and any other data channels you use (Amazon, PayPal, QuickBooks, etc). Kabbage uses the information provided to determine your monthly fee and maximum credit line.
Kabbage will perform a hard pull on your credit during the application stage. Although the lender does not state a minimum cutoff, it will use your credit history to help verify your identity and determine risk. An algorithm decides your rates and fees. It generally only takes a few minutes.
Bluevine boasts a 5-minute application process in comparison to the 10-minute application process offered by Kabbage. But our team noticed that the time taken to fill out both forms took an equal time, and it is only 5 minutes anyway.
We found, on the whole, that the Kabbage application process was a little smoother. Kabbage was built around a smooth and easy application process, and it is what got the provider on the international lending radar. Both are very good. Kabbage is a little better.
|Application Speed||5 Minutes||10 Minutes|
|Time to Funding||24 Hours||24 Hours|
Post Application Process Comparison
With Kabbage, after you sign your loan agreement, your funds will be sent to the account that you indicate, either your business checking account or a PayPal account. Funds deposited into a PayPal account will take only a few minutes to process, whereas it may take up to three days to receive the funds in your business checking account. Once you’ve received your funds, you can immediately start drawing money from your credit line and you’ll only pay for funds that you use.
Once funded with Kabbage, you can pull from your Kabbage Funding revolving line of credit as often as once per day—and you can do so using the Kabbage mobile app or online dashboard. As with most line of credit products, you’ll only pay interest on what you pull from the pool of funds. They will inform you of your full repayment schedule during the underwriting process—this way you can be fully prepared to start making the payments.
They’ll automatically collect the minimum repayment each month from your business bank account. You’ll also be able to make manual payments at any time. Additionally, you’ll be able to review your payment plan and schedule on the online dashboard. They do not report to personal credit bureaus or business credit bureaus, so your activity won’t affect your credit scores.
With Bluevine, once you’ve connected your accounts, their online algorithm performs the underwriting, so you can get an approval decision in minutes. If you’re approved, you’ll instantly see the size of your credit line, the repayment terms offered, and the interest rate. Some customers will be given the option to choose between a 6 or 12-month repayment term.
|Ease of withdrawal||Easy||Easy, but with review|
|Repayments||Monthly||Monthly or Weekly|
|Mobile Applications||Exceptional||Very poor, IOS only, checking accounts only.|
Similarities Between Bluevine and Kabbage
There are many similarities between these two lenders, who compete with one another. Both Bluevine and Kabbage offer the Line of Credit. The rates are similar, though Bluevine is a little cheaper. Both favor an algorithmic loan application process that takes less than 10 minutes to complete. Both of them allow a zero-fee checking account that is FDIC insured with an associated banking card. IOS applications are available for each provider.
The rates are similar, tending to be quite high. Even the layout of the online platforms is similar. Kabbage tends to be more organized, however, in many respects. The Bluevine mobile applications are not up to speed, and the official website does not function properly, being very much a work in progress. We expect more from a firm that has raised so much in venture capital funding.
Bluevine Advantages and Disadvantages
The primary advantages of Bluevine are its excellent customer service and smooth application process. It offers a decent array of products and services, including a checking account, line of credit, invoice factoring, PPP loans, and more. But it does have several drawbacks.
With its invoice factoring, you will get penalized for customers that pay late. Bluevine invoice factoring lets you tap unpaid invoices as a source of capital, but you must have reliable customers who have strong credit and pay their bills. Bluevine gives your customer two weeks to directly pay your Bluevine account. If a customer fails to pay, you have to pay back the invoice.
Also, Bluevine’s term loan and line of credit carry short repayment terms of up to 12 months, which results in higher payment amounts. Its term loan requires weekly repayments, while its line of credit is repaid weekly or monthly. The high frequency of payments can pose an issue for businesses that have uneven sales or don’t hold much cash in a bank account.
And, of course, there is the primary disadvantage – the minimum qualification criteria are very high. In comparison to Kabbage and many other online lenders. But all in all, the advantages outweigh the disadvantages with Bluevine, a well-respect online lending platform.
Kabbage Advantages and Disadvantages
The primary Kabbage disadvantage is that the rates are too high. When you convert their monthly fees to an annual percentage rate (APR), you’ll find that their fees are pretty steep.
Plus, if you’re approved for a line of credit with a monthly fee on the higher end of the spectrum, your APR may be as high as 100%. On top of higher interest rates, Kabbage Funding does not report to the personal or business credit bureaus. If your credit is struggling, you’ll want to work with a lender who reports good borrowing behavior on your business loan to the credit bureaus.
However, if you want a low quickly with few questions asked and do not have a long history, then Kabbage is unparalleled. The Kabbage automated loan process was revolutionary and it is known as a disruptor in the space. A pioneer in making the industry more transparent, it is connected to many high-end financial companies. It offers the lowest eligibility requirements of any lender, which is why it has been able to help so many business owners. For many years, small business owners were raving about how good the service was.
Even still, it has recently hit a bump in the road. The customer service team is not as good as it should be, and it failed to accurately process several PPP loans. Aside from this, the rates are quite high, and it only offers the business line of credit at present. If you have a good business but just need a line of credit to get you through, however, it is a perfect place to start. Just ensure you understand the rates before taking out a Line of Credit. Also, take into account that you will pay back a disproportionate amount of the loan in the first 2 months.
Additional Bluevine Products and Services
The primary ‘additional’ service offered by Bluevine is its invoice factoring. For most financial organizations, this is an additional service offered on top of its core model, usually either the term loan or business line of credit, Bluevine offers the line of credit up to a whopping $5 Million with rates as low as 0.25%.
Applicants need to merely sync up their existing payment software and they can get a response within 10 minutes and funding within 24 hours. That’s fast. They also provide up to 85% – 90% of the money upfront, which is quite generous by invoice financing standards. After the invoice is paid you receive the rest of the funds, minus the fees for the service.
As stated previously, the minimum criteria for the invoice factoring are ultra-low – a 530 FICO credit score, 3 months in business, and $10, 000 in monthly revenue (equivalent to $100,000 in annual revenue). But you will also need to supply 3 months of financial statements and some basic information. The terms and conditions for the Bluevine invoice factoring are:
- Where the service or product was completed, delivered, and accepted by your customer
- Where the customer is based in the US or Canada (English speaking provinces)
- Where the customer is a business (not a consumer)
- Where the invoice face value is higher than $500
- Where the payment term is shorter than 13 weeks
- Where the due date is at least 1 week away
Bluevine also offers a fully-fledged business checking account. This is a new product offering unlimited transactions and no monthly fees. We are seeing this more and more in the financial services industry in general. Online providers are all trending to offer checking accounts, loans, debit cards, and spending analysis tools from one central repository. Bluevine offers a 1% interest rate, which isn’t much. But it might reduce the cost of a loan by 1% if you keep an equivalent amount in this checking account.
Additional Kabbage Products and Services
Kabbage has been innovating in the space for years and has quite several additional services. So even if it only offers one core loan product (the line of credit), you get access to:
- The Kabbage card
- Kabbage Insights
- Kabbage Small Business Revenue Index
- Kabbage Payment
- Smart Analytics Dashboard
Kabbage also has lots of integrations with online accounting tools and payment processors, a lot more than Bluevine. Kabbage also offers customized invoices which makes it easier for customers to pay you and it is an ideal B2B solution.
Similar to Bluevine, Kabbage also offers an online checking account for essential business purposes. And it is ever so slightly better in comparison, offerings a 1.1% interest rate, no monthly fees, and free ATM access. This makes it even easier to pay bills and accept payments. Our team loved the ‘Pockets’ feature with the Kabbage checking account. This is a tool (often termed ‘acorns’ with other providers) where you have certain goals and put away capital towards them in ‘pockets’. It’s a great way for business owners or regular individuals to meet financial targets.
All Checking accounts are insured with the Federal Deposit Insurance Corporation (‘FDIC’) up to $250,000 and backed by Green Dot Bank, also a member of FDIC. The associated debit card uses an EMV chip for extra protection of your account and you can lock & unlock your card from your Kabbage account.
Customer Service Comparison
When it comes to customer service, Bluevine tends to be stronger. Kabbage was built, from the ground up, as an automated, algorithmic, online lender. Just hook up your accounting software, and away you go. It was never meant to have a dedicated customer service team at hand because such issues were not supposed to arise (and, before COVID, they didn’t).
This is not to say that Bluevine is far superior or that Kabbage’s customer service is terrible. It isn’t’. It’s just that Bluevine has an edge in this regard. This is reflected in the review sites, where Bluevine has a slightly higher rating than Kabbage, but not by a huge margin.
Bluevine Reviews vs Kabbage Reviews
Both Bluevine and Kabbage have A+ ratings with the Better Business Bureau. Reviewers cite Bluevine’s customer service and ease of use as key positive aspects of the company. Kabbage customers appreciated the speed of funding and the simplicity of the application process.
Negative Bluevine reviews and Kabbage reviews were primarily based on potential customers that did not qualify, or borrowers feeling that the rates that they were charged were too high.
Because both Bluevine and Kabbage are online lenders and have lower minimum qualification requirements than a traditional bank, it should be expected that their rates will be higher than you might get through a more traditional lender.
The fact is that many people fail to read the terms and conditions of their loans. They then complain that the rates were too high on social review sites.
Bluevine is Best For…
Bluevine is best for business owners looking for invoice factoring. In terms of the line of credit, there is little separating them with Kabbage, apart from slightly lower rates. Bluevine is similar to Kabbage in terms of its LOC offering, though offers slightly lower rates on average. Bluevine falls in terms of its applications and online experience in comparison but does offer better rates and excellent customer service if anything goes awry.
Kabbage is Best For…
Kabbage is best for business owners looking for a line of credit as quickly as possible without having a strong credit score or a long history. It is ideal for startups with a great idea that needs capital quickly to get a boost. The rates might not be the best, but it is ideal for those looking for cash who have faith in their business model.
When to Use Bluevine
Use Bluevine if you are looking for a Line of Credit with the lowest fees. This is where it stands out – its fees are a little bit lower. Besides, its customer service is superior to Kabbage. This is what most small business owners will be looking for – a simple, direct, low-cost line of credit with a transparent pricing structure.
Bluevine is a touch more transparent in its pricing fees than Kabbage. You can also use Bluevine where you are in the market for invoice factoring. Bluevine offers a low-fee invoice factoring process, even compared to providers that operate specifically within this niche. We recommend Bluevine as the better option than Kabbage if:
- You want to free up cash from unpaid invoices
- Your business is less than one year old but has demonstrated revenue.
For businesses looking to cover cash flow gaps from unpaid invoices, Bluevine is likely the better option. Bluevine offers a specific invoice factoring product, which allows business owners to receive advances on invoices up to $2 million. If you sign up for Bluevine, you can submit specific invoices in advance, and you will receive 85% to 90% of the invoice upfront.
Bluevine is also a great option for businesses that are less than one year old. To qualify at Bluevine, you must be in business for at least three months to apply for invoice factoring and at least six months to apply for a line of credit.
With Kabbage, you must be in business for at least one year to qualify for its line of credit. One disadvantage of Bluevine is the higher revenue requirements: to qualify for invoice factoring your business must do at least $10,000 in monthly revenue, and to qualify for a line of credit, your business must do at least $5,000 monthly.
When to Use Kabbage
If you want money quickly without delay, then go with Kabbage. It is what they are good at – a smooth application process that accepts the majority of applicants. You can also make use of a neat checking account and some cool analytics. If you are looking for a line of credit but do not meet the minimum requirements of Bluevine, then Kabbage has lower requirements.
You might also take into consideration Kabbage Payments and Kabbage Insights, as well as the many Kabbage integrations (Xero, Quickbooks, etc). While the core Bluevine service might offer a little more, there is a lot to be said for ancillary Kabbage products and services, where it tends to stand out. Its bank account and analytical capabilities tend to be superior, albeit slightly.
The main reason you might make use of Kabbage is when you do not meet the strict Bluevine Line of Credit criteria – 2 years in business, a 650 credit score, and $40,000 in monthly revenue means it is one of the most difficult of all online lenders!
In sum, Kabbage may be a better option than Bluevine if:
- You want a longer-term line of credit or monthly repayment
- You have a credit score under 600
- Your business has lower annual revenue
Kabbage has more lenient credit requirements for lines up to $100,000 than Bluevine, so it’s a better choice for those borrowers with low credit scores. In contrast, Bluevine requires borrowers have a minimum credit score of either 600 or 650 to qualify for its line of credit product whereas Kabbage has no minimum credit requirements.
How to Choose Between Kabbage and Bluevine
When evaluating these two lenders, we recommend you first consider if you even meet the basic eligibility criteria for each lender. Kabbage, for instance, requires businesses to be at least 12 months old with $50,000 in annual revenue to qualify for a line of credit up to $100,000.
To qualify for Bluevine invoice factoring, your business must be at least three months old with $10,000 in monthly revenue. You will also need to have a credit score of 530 or higher. For Bluevine’s line of credit, the requirements are more strict: you must be in business for at least 2 years with $40,000 in monthly revenue.
You will also need a minimum credit score of 600 or 650 depending on how much revenue your business has (which is why some review sites state the Bluecine minimum FICO requirements are 650 and above). Moreover, your average monthly bank account balance must be $1,000 or more.
Provided that you qualify with both lenders, the next step is to think about how much money you need, what you need it for, and how you want to repay. Both lenders can fund your loan offer within a couple of days, so the speed of funding isn’t a differentiating factor.
Your planned use of funds will help you decide which lender is better for your needs. If you need to clear invoices, for example, Bluevine is likely the better choice. However, if you want a more traditional line of credit product, Kabbage offers that.
Also, consider the repayment schedule — does a monthly or weekly repayment schedule work better for your business? Some business owners prefer making a large lump sum payment each month, but others might find this puts a strain on their business’ financials.
When Not to Use Either Bluevine or Kabbage
The fact is that both Bluevine and Kabbage have similar loan offerings. They are the two best lenders when it comes specifically to the Line of Credit option. The application process and speed of transfer of both providers are nearly identical. The maximum amount is also identical ($250,000).
Needless to say, you would not use either one when a term loan with a fixed repayment term is more appropriate to your financial needs. So take stock of what you are looking for.
If you are looking for lower rates, then neither Bluevine nor Kabbage is appropriate. They are short term lenders with a quick application process and low eligibility requirements. All of this translates to higher fees. You do pay a price for convenience and speed.
In truth, there is little separating Bluevine and Kabbage. Both operate in the same space with similar rates. Both have super smooth application processes. Kabbage has lower requirements, with slightly higher rates. Bluevine offers invoice factoring, while Kabbage only offers the line of credit.
Either one is a good option, just make sure to be clear on the terms and conditions before you take out a line of credit or invoice factoring solution.
Why Choose Kabbage?
If you are looking to avail of a low hassle loan quickly and effortlessly, then Kabbage is the way to go. You know exactly what you are getting into. If you do not meet the very high standards as set by Bluevine, then Kabbage is the perfect solution. You don’t get quite the same rates, but it is not a massive difference. Practically every small business owner will qualify for a Kabbage loan. While the rates are a little steep, you still get access to finance with an excellent provider and an awesome dashboard and toolkit. As stated previously, just make sure that you pay attention to the terms and conditions.
Why Choose Bluevine?
Bluevine has low fees and a very reputable customer service model – the two primary components of a high-quality financial services provider! There are also perfect for those looking for invoice factoring. To top it off, the provider even has good (though not exceptional) customer reviews on social proofing sites.
Who Is More Established, Bluevine, or Kabbage?
Kabbage has been in the space longer, has conducted more research, and has lots of network connections. Bluevine still seems to be findings its feet in many regards – many sections of its website are not functioning properly at the time of this writing. Kabbage tends to have more credibility, but with the recent hits it took from the COVID fallout, Bluevine might gain some ground.
Who Has an Easier Application Process?
We found that the Kabbage application process is easier than the Bluevine application process. This is mainly related to the fact that Bluevine has far higher eligibility criteria as compared to Kabbage, with a 650 credit score, $40,000 in monthly revenue, and 2 years in business.
Who Offers a Better Mobile Experience?
Kabbage. Bluevine only offers an IOS mobile application for business checking accounts. And, according to many reports and our investigation, even this application does not function as well as it should, with major sign-in issues and a clear lack of usability. Kabbage is years ahead in this regard.
Who Has Lower Rates?
On average, Bluevine tends to have lower rates, every so slightly. This is hard to tell from the initial base interest rates. But the APR averages for Kabbage have higher highs and high lows, so you can expect to pay a little more. Moreover, the fact that the Kabbage fees are front-loaded means that you will not get the most out of the amount loaned. However, you will not find hidden charges with either lender, and the rates are quite transparent.
What About the Bluevine Business Term Loan?
A lot of earlier online reviews will talk about the term loans offered by Bluevine. But Bluevine has not been offering these loans for some months now, though they might come back at some stage in the figure. This is why some reviews will state that the minimum credit score for Bluevine and the minimum annual revenue is $100,000. But this is only true for the term loan, which is no longer offered. The Line of Credit minimum criteria is much more extensive.
Are Bluevine and Kabbage the Same?
In truth, both providers are remarkably similar. The differences are only slight. Bluevine has slightly higher minimum qualification requirements. But the Average APR is similar, the application process is similar, and the loans themselves are underwritten by the same bank (Celtic Bank). Both of them are very good at what they do. Kabbage does offer 18-month repayment terms, in comparison to the 12-month maximum offered by Bluevine. Kabbage also offers a $2000 minimum loan compared to the $5000 from Bluevine.
Why Are Kabbage Requirements So Low?
Because they have a sophisticated algorithm that can calculate the risk based on prior spending and forecasted future expenditure. It is a data-driven model. Kabbage was one of the first to the game, and have an excellent team, which is why they are the lowest. However, this is also similar to how Bluevine works, and more competitors are entering the arena.