Kabbage and OnDeck are both online business lenders that serve small businesses. They both serve similar purposes. If you need a business loan but can’t wait for weeks or months to get one, they can offer you what you need. If your credit score is too low for banks, Kabbage and OnDeck will likely offer you a solution. Both offer business lines of credit that can come with a huge range of possible APRs. So, when it comes to Kabbage vs OnDeck, how do these two truly compare?
Let’s take a look at the terms offered by both of these lenders. We will go over their cost, ease of access, their levels of service, and their speed.
Kabbage vs OnDeck
Kabbage Business Loans
Kabbage offers several simple business loan products. They offer business term loans that can come with 6, 12, or 18-month repayment terms. The company is known for offering its loans, including huge lines of credit, in a matter of days. You can often get over $50,000 in credit in just over one day.
Compared with similar lenders, Kabbage’s requirements are fairlu lax. Their rates can be high, but the rates they offer you can vary widely. Your credit score and business financial information will determine the rates they offer you.
OnDeck Business Loans
OnDeck is a more diverse business lender than Kabbage. They offer a wider selection of loans and repayment terms. However, their application process is comparable, and their rates are somewhat similar.
The main thing you’ll notice is that OnDeck has more stringent requirements than Kabbage and other similar lenders. You can expect similar service to Kabbage’s, but the minimum requirements you must meet are higher.
Kabbage vs OnDeck: Who Is Cheaper?
For the most part, OnDeck provides cheaper loans. While OnDeck can be about as expensive as Kabbage in some cases, if your credit score is high, OnDeck will have better offers for you.
Overall, Kabbage offers more accessible business financing than OnDeck, but at a price. OnDeck offers borrowers APRs that start as low as 9%. Kabbage, on the other hand, offers loans with APRs starting at 24%. However, both of these lenders may only offer you loans with massive APRs, primarily due to high interest rates. If your credit score is very bad and your business’s finances are perceived as risky, they may both charge up to a 99% APR.
The weighted average interest rate for OnDeck’s term loans is 25.6%. Their weighted average APR on their lines of credit is 32.8%. Kabbage does not state a weighted average APR for any of its loans on its website, but the average rate is around 40%.
The winner for the better rates goes to OnDeck.
Kabbage vs OnDeck: Who Is More Accessible?
Kabbage’s business financing is easily more accessible than OnDeck’s. With a minimum credit score requirement of 560, Kabbage is a somewhat lenient lender. Kabbage also requires that you have a minimum annual revenue of $50,000. Apart from that, you need to have been in business for at least one year and have an online platform from which to pay them.
In comparison, OnDech requires you to have at least $100,000 in annual revenue for either their term loan or their line of credit. Their requirement for your time in business is one year, the same as Kabbage’s. However, they require a minimum credit score of at least 600. They will also want to check that you haven’t had any bankruptcies during the last two years.
Kabbage may not offer better rates, but it does offer a more lax bar of entry for young and struggling businesses. If you need a fast business loan but have a young business or a low credit score, it’s far more likely that Kabbage will open their doors to you.
Which Business Lender Is Faster?
Speed is a factor that both lenders excel at. Either one of them can get you a loan in less than two days. However, Kabbage is typically faster.
Kabbage can assess your initial application in a matter of minutes. They’ll then send you an offer, and you can often start pulling funds on the same day. Furthermore, Kabbage’s convenient online platform makes pulling the funds you need from their line of credit consistently fast and easy.
OnDeck is also excellent when it comes to speed and convenience. However, they don’t quite measure up to Kabbage in these areas.
Who Offers Better Customer Service?
Impartial and trusted platforms demonstrate that Kabbage provides clearer and better customer service. The Better Business Bureau has accredited both businesses and given them an A+ rating. But when it comes to Kabbage vs OnDeck, customers have an overall better experience and go through fewer troubles when using Kabbage. Common complaints directed at OnDeck include slow responses and confusing customer support processes. Kabbage also has a few of these complaints and some others but in far fewer numbers.
Tallying The Scores
It’s easier to compare a pair of vastly different lenders than it is to compare two lenders like Kabbage and OnDeck. That is why it’s more important to investigate all the details that count.
OnDeck can provide you with more competitive rates than Kabbage, but they are a stingier lender. If you have the requirements for OnDeck’s loans, you will get a more affordable rate from them.
Overall, Kabbage may seem to offer more benefits than OnDeck. However, their similarities make Kabbage’s advantages less serious than they may appear. You can always submit an initial application to both lenders and compare their offers. However, if you’re truly in a rush and are unsure if you would be accepted by OnDeck, Kabbage is the faster and more balanced option.
