Kabbage vs OnDeck vs PayPal: A Comparison

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  2. Kabbage vs OnDeck vs PayPal: A Comparison

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kabbage vs ondeck vs paypal

Simple business term loans can come from many lenders. Among the simplest and most transparent, there’s Kabbage, OnDeck, and PayPal LoanBuilder. These direct lenders all offer fast business term loans to businesses. Their applicants come from a wide range of industries. They also have a wide range of revenue requirements and credit scores, so the three deserve a head to head comparison.

Kabbage vs Ondeck vs PayPal: A Glance At The Candidates

Kabbage

Lender Minimum Revenue Time In Business Minimum Credit Next Steps
$50,000/yr 1 year 560+ See if you qualify

Kabbage is an especially fast alternative business lender. They offer term loans and lines of credit to borrowers with credit scores ranging from 560 to 850. While speed is its greatest strength, Kabbage is also known for its transparency.

For this comparison, we will only be comparing a Kabbage short-term business loan.

OnDeck

Lender Minimum Revenue Time In Business Minimum Credit Next Steps
$100,000/yr 1 year 600+ See if you qualify

OnDeck is another alternative lender that provides fast small business loans. Their fees are relatively low for an alternative business lender. But they offer those better rates with a higher set of requirements than most of their competition.

While OnDeck offers lines of credit as well, we will be looking at their business term loans.

PayPal’s LoanBuilder

Lender Minimum Revenue Time In Business Minimum Credit Next Steps
$42,000/yr 9 months 550+ See if you qualify

PayPal LoanBuilder offers customized business term loans. They only offer installment loans, but they offer a special level of transparency. You can use the company’s LoanBuilder Configurator to set sliders to build the loan you want. If you qualify for those terms, you can apply for a business loan.

Which Business Lender Is Cheaper?

Kabbage can easily cost quite a bit more than its competition. They carry a complex but transparent pricing structure that can be found on their website. APRs start at 24.99% but can rise to 99%.

OnDeck business term loan APRs start at just 9%. But they can also rise to about 99% for less qualified applicants. The weighted average APR for an OnDeck business term loan is 25.6%, according to OnDeck’s report.

The cost of LoanBuilder comes through their “borrowing fee”. This fee works out to 6.49% to 19.31% of the balance of the loan. The exact rate will depend on their assessment of you and your business. But LoanBuilder doesn’t charge origination or early repayment fees. LoanBuilder’s APRs for their term loans start at about 7% but can rise to about 20%.

All things considered, LoanBuilder offers the best rates for business term loans. But individual cases may vary. If your credit score is less than ideal, LoanBuilder will typically offer the best rates.

Which Business Lender Is More Accessible?

The Kabbage qualifications are:

  • Annual revenue of at least $50,000 (or $4,200 for the last 3 months)
  • At least three months in business
  • A credit score of 560

The OnDeck qualifications are:

  • Annual revenue of at least $100,000
  • At least one year in business
  • A credit score of at least 600

The PayPal LoanBuilder qualifications are:

  • Minimum annual revenue of $42,000
  • At least 9 months in business
  • A credit score of at least 550

OnDeck isn’t the easiest lender to qualify for in this Kabbage vs Ondeck vs PayPal LoanBuilder comparison. Kabbage and LoanBuilder come with similar requirements, with LoanBuilder requiring lower revenues but more time in business.

For ease of access, we can call it a tie between PayPal LoanBuilder and Kabbage.

Which Business Lender Is Faster?

All three contenders offer loans very quickly. With any of them, you can expect your application to be approved in a matter of hours or faster. You can also expect your funds to arrive on the next business day.

But Kabbage takes speed to a new level. The “six-minute lender” can approve your loan in a matter of minutes. Then, they’ll transfer your funds by the next business day.

Kabbage wins when it comes to speed.

Who Offers Better Customer Service?

It’s a bit harder to determine a winner for customer service. All three of these lenders offer good customer support.

Kabbage can be reached by phone or email. They can also be found on their active social media accounts. Getting support from them is easy. The company is particularly well-regarded by customers on the Better Business Bureau and Trustpilot. This reflects how they’re good at solving their customers’ concerns.

OnDeck offers customer support through live chat, phone, and email. They can also be reached on social media. OnDeck also matches new customers with customer support representatives for the life of their loan. That feature seems to be a favorite of OnDeck customers. OnDeck provides well-rounded customer service.

LoanBuilder offers phone support from Monday to Saturday. They can also be reached via email or by message on social media. They are only missing a simple live chat feature, but otherwise offer support on all important channels.

All three of these lenders offer customers the support they need. This similarity is another reason an overall Kabbage vs OnDeck vs PayPal LoanBuilder comparison is needed.

Tallying The Scores

LoanBuilder is the most affordable lender of these three under most circumstances. 

Kabbage offers loans faster than the other two but charges higher APRs most of the time.

In the end, LoanBuilder offers a well-rounded deal. But if you have less time in business, a Kabbage loan might suit you.

Not sure where to go for a business loan? Read these quick & helpful guides:
Check out our preferred marketplace lenders.

Lender Minimum Revenue Time in Business Minimum Credit Next Steps
$10,000/mo 6 mo. 550+ See if you qualify
$10,000/mo 3 mo. n/a See if you qualify
$10,000/mo 3 mo. n/a See if you qualify
$75,000/yr 24 mo. 620+ See if you qualify
Varies Varies 560+ See if you qualify

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