LoanBuilder vs Kabbage: Lender Comparison

LoanBuilder and Kabbage are two popular business lenders with very different offers. Both are known for their transparency. They both let you see their pricing calculations before you take a loan. You can also find a lot more information on their sites. Their rates are also similar. So, this deserves a LoanBuilder vs Kabbage comparison.

We will be looking at the unique offers from each of these lenders. Then, we will delve into the details before sharing our final assessment.

A Glance At The Candidates

LoanBuilder

LoanBuilder is a PayPal business lending service. They are known for their reputation as a safe and trustworthy financial services provider. Like PayPal’s other services, LoanBuilder isn’t always the cheapest option. But it is a simple, transparent service with no strings attached.

LoanBuilder offers a lot of customization and transparency. These factors set them apart from their competition. You can use their LoanBuilder Configurator to get a look at the details of the loans you can build. This allows you to know exactly how much you will be paying and your repayment schedule before you take a loan.

LoanBuilder only offers business term loans.

Kabbage

Kabbage is a business lender that is similarly highly regarded. The Better Business Bureau and Kabbage borrowers rate the company highly. This is mainly due to the company’s simplicity, straightforward service, and customer support.

While it’s not the cheapest option, Kabbage is one of the fastest and simplest business lenders. The “six minute lender” has made use of automation since it first entered the business lending industry in 2008.

Kabbage offers two loan products: a short-term business loan and a business line of credit.

LoanBuilder vs Kabbage: Which Business Lender Is Cheaper?

LoanBuilder charges a “borrowing fee” that works out to 6.49% to 19.31%. The exact rate will depend on their assessment of you and your business. There are no origination or early repayment fees. So, APRs for LoanBuilder loans start at about 7% but can rise to about 20%.

Kabbage has a complex but transparent pricing structure. Their APRs start at 24.99% but can rise to 99%. The exact calculations that go into their rates are too complicated to cover in this LoanBuilder vs Kabbage review. You can see their full calculations system on their website.

LoanBuilder is clearly the cheaper option.

LoanBuilder vs Kabbage: Which Business Lender Is More Accessible?

Neither LoanBuilder nor Kabbage have very stringent requirements. But there are a few quick differences that you need to consider.

The LoanBuilder qualifications are:

• A minimum annual revenue of $42,000
• At least 9 months in business
• A credit score of at least 550
• See if you qualify for LoanBuilder

The Kabbage qualifications are:

• An annunal revenue of at least $50,000 (or $4,200 for the last 3 months)
• A credit score of 560
• At least three months in business
• See if you qualify for Kabbage

So, Kabbage has higher requirements when it comes to revenue. Credit score requirements are almost identical, with Kabbage being slightly more stringent. But Kabbage has a much lower bar when it comes to your business experience.

Overall, it’s easy to qualify with either of these lenders. The two are about tied for ease of qualifying.

LoanBuilder vs Kabbage: Which Lender Is Faster?

LoanBuilder is a fast business lender. The application process is easy and it takes just a few minutes to apply. They make the application process especially easy. But the time it takes to get your funding isn’t quite as fast as Kabbage.

After you apply, Kabbage can make a decision in just a few minutes. They also fund by the end of the next business day, typically. They are among the fastest business lenders on the market.

When it comes to speed, Kabbage is the winner.

LoanBuilder vs Kabbage: Which Offers Better Customer Service?

This is a harder category to announce a winner in. Both Kabbage and LoanBuilder are very good at customer support.

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

Kabbage is easy to reach by phone or email. They are also very active on social media. Getting support from Kabbage is always easy. They are also well-regarded by customers on the Better Business Bureau. This means they are good at solving their customers’ concerns.

Tallying The Scores

LoanBuilder is a great PayPal service that offers better rates than Kabbage. It’s a great option for many business owners including those with poor credit scores.

Kabbage is about as accessible as LoanBuilder, but their rates are higher. Despite that, Kabbage is an extremely fast business lender that offers a lot of support to customers. If you just need a fast loan, Kabbage is the faster option.