Best Loan Builder vs Kabbage: Lender Comparison 2022

Loan Builder vs Kabbage: Lender Comparison

Loan Builder 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 out the loan. You can also find much more information on their sites. Their rates are also the same. So, this Loan builder vs Kabbage comparison is worthy.

We will look at unique offers from each of these lenders. After that, we’ll delve into the details before sharing our final assessment.

 

A Glance At The Candidates

Loan Builder

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

Loan Builder offers a lot of customization and transparency. These factors set them apart from their competition. You can use their Loan Builder vs Kabbage Builder Configurator to get a look at the details of the loan you can build. This will help you know exactly how much you will pay and your repayment schedule before you take the loan.

Loan Builder offers only business term loans.

Kabbage

Loan Builder vs Kabbage is a business lender that is equally highly regarded. The company is highly rated by the Better Business Bureau and borrowers. This is mainly due to the company’s simplicity, straightforward service and customer support.

While it’s not the cheapest option, Loan Builder vs Kabbage is one of the fastest and easiest business lenders. “Six Minute Lenders” have used automation since they first entered the business lending industry in 2008.

LoanBuilder vs Kabbage offers two loan products: short-term business loans and business lines of credit.

 

Loan Builder vs Kabbage: Which Business Lender is Cheaper?

Loan Builder 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 Loan Builder vs kabbage start at about 7% but can rise to about 20%.

Loan Builder vs 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 Loan Builder vs Kabbage review. You can see their full calculations system on their website.

Loan Builder is clearly the cheaper option.

Loan builder Cabbage: Which Business Lenders Are More Accessible?

Neither LoanBuilder nor LoanBuilder vs Kabbage have very strict requirements. But there are some quick differences that you need to consider.

The qualifications of a loanbuilder are:

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

Cabbage Qualifications are:

• Annual income 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 Loan Builder vs Kabbage

Therefore, Kabba’s requirements are high when it comes to income. Credit score requirements are about the same, with Cabbage being a bit stricter. But Loan Builder vs Kabbage has a very low bar when it comes to your business experience.

Overall, qualifying with any of these lenders is easy. Both are bound for ease of qualifying.

Loan builder vs Kabbage: Which Lender is Faster?

Loan builder is a fast business lender. The application process is simple and takes a few minutes to apply. They make the application process particularly easy. But the time it takes to get your funds is not as fast as Loan Builder vs Kabbage.

After you apply, Cabbage can make a decision within minutes. They also typically disburse funds by the end of the next business day. They are one of the fastest business lenders in the market.

When it comes to speed, Loan Builder vs Kabbage is the winner.

Read Also: Best Alternatives to bad credit loans 2022

Loan Builder vs Kabbage: Which one offers better customer service?

This is a tough category to declare a winner. Both Loan Builder vs Kabbage and Loan Builder are very good at customer support.

Loan Builder offers phone support Monday through Saturday. They can also be easily reached through email or messages on social media. They’re just missing a handy live chat feature, but otherwise offer support across all important channels.

Cabbage is easy to reach by phone or email. He is also very active on social media. It’s always easy to get support from Cabbage. They are also well regarded by consumers on the Better Business Bureau. This means that they are good at solving their customers’ concerns.

Calculation of scores

Loan Builder is a great PayPal service that offers better rates than Loan Builder vs Kabbage. It is a great option for many business owners with poor credit scores.

 

Cabbage is as accessible as Loan Builder, but its rates are higher. However, Loan Builder vs Kabbage is a very fast business lender that offers a lot of customer support. If you just need a quick loan, Loan Builder vs Kabbage is the fastest option.

Kabbage is a good option if you:

• Working capital requires cash.
• Have average personal credit.
• Choose to pay monthly.

Kabbage offers a line of credit, and each draw requires repayment over six, 12 or 18 months. Credit line amounts range from $2,000 to $250,000. (Read our cabbage review.)

Minimum Qualifications:

Loan Builder vs Kabbage requires a credit score of at least 640, at least one year in business and a monthly income of at least $3,000.

You also need to have a business checking account or an online payment platform like PayPal or QuickBooks.

Speed: The online application process can take less than 10 minutes. No documents are required, and you will usually get a loan decision within the same day.

Depending on how you receive the cash and how quickly LoanBuilder vs Kabbage can verify your business data and bank account, you may receive funds immediately or within a few days. You can get money faster with an instant transfer to your PayPal account rather than a direct transfer to your bank through your debit card or an automatic deposit to your bank. You can also request a Visa credit card that is linked to your Cabbage line of credit.

Cost: Instead of traditional interest, LoanBuilder vs Kabbage charges a monthly fee based on the term of your loan. Each month, you pay a percentage of the amount borrowed — the principal — plus fees.

The monthly fee is from:

• For six month loans: 0.25%–3.50%.
• For 12-month loans: 0.25%–2.75%.
• For 18-month loans: 0.25%–2.50%.

Best Uses: Cabbage is a good option for obtaining working capital and covering day-to-day expenses, such as payroll and inventory.

OnDeck is a good option if you:

Need quick cash for major expansion or working capital.

Need to borrow more than $150,000.

Are comfortable paying weekly or daily.

OnDeck’s term loans range from $5,000 to $250,000 and provide a lump sum of cash at closing that you make daily or weekly payments for up to 24 months.

Lines of credit go up to $100,000 and are repaid weekly. (Read our OnDeck review.)

Minimum Qualifications: To qualify for a term loan, you must have been in business for at least one year, earn at least $100,000 in annual revenue, have a personal credit score of 625 or higher, and have no personal bankruptcy pending. last two years.

For a line of credit, you need to be the majority owner of the business with a minimum personal credit score of 625. Annual income and time in business requirements are similar to OnDeck’s term loans.

For both products, you will need to sign a personal guarantee. However, unlike OnDeck’s term loans, its line of credit does not require a lien on your business assets.

• Speed: The application process is easy and takes about 10 minutes. You get a loan decision within minutes and get access to same-day funds for loans and immediate access to funds for lines of credit ranging from $1,000 to $10,000. You can apply online or by phone. Learn more about the application process in our OnDeck step-by-step guide.
• Costs: OnDeck’s APR for term loans ranges from 29.9% to 65.9% (based on loans originated in the half-year ending March 31, 2022). These rates include an origination fee of between 2.5% to 4% of the total loan amount. The fee drops to 1.25% to 3% for your second loan and 0% to 3% for all subsequent loans.

There are no prepayment penalties, and OnDeck offers prepayment options that include possible interest rate reductions. Payments are automatically deducted from your business bank account.

OnDeck’s lines of credit have APRs ranging from 29.9% to 65.9% (based on loans originated in the half-year ending March 31, 2022). You pay each individual draw on the line of credit weekly.

Best Uses: OnDeck’s term loans are generally best suited for business owners who need a significant amount of money to purchase equipment, open a new location, hire employees, or make a large inventory purchase. Its lines of credit are a good option for businesses that need working capital or help handling unexpected expenses.

PayPal Loan builder and Kabbage: Comparing Services

Both Loan Builder and Kabbage offer quick and easy access to small business financing. But while Loan Builder offers short-term loans up to $500,000, Cabbage offers flexible lines of credit up to $250,000.

Loan Builder provides capital to small business owners through short-term loans. When you apply for a Loan Builder loan, you can get between $5,000 and $500,000 for your business. Once approved, you will get a lump sum of cash that can be used as working capital, for emergencies, to expand your business or for any other business purpose.

Customize your loan

One of the advantages of Loan Builder loans is that you can “build” your own loan. With Loan Builder Configurator, it’s possible to check out different options to find the best financing solution for your business. You can easily adjust the loan amount and terms to compare your options. For example, if you want lower monthly payments, choose a longer repayment term and lower the loan amount. If you want to reduce your fixed fee, opt for a shorter term.

Flexible financing

If you want more flexible financing, a Coby loan is a better choice for your business. Through Loan Builder vs Kabbage, you can get credit with limits ranging from $1,000 to $250,000.

Loan Builder vs Kabbage lines of credit are significantly different from conventional loans. Loans – such as those available through Loan Builder – are sent to your bank account in a single lump sum. Once you pay off the loan, you have to reapply to get more money. With Loan Builder vs Kabbage’s line of credit, you will be assigned a credit limit, and you can make one or more draws up to and including that credit limit. Each payment is applied to your balance plus fees.

As you repay the borrowed funds, they will be available for you to use again — no additional approvals required.

Funds when you need them

One of the best things about a Loan Builder vs Kabbage line of credit is that you don’t have to use it right away. With a conventional loan, you still need to make regular payments, even if the funds in your bank account are untouched. With a line of credit, however, you don’t have to pay until you request a fund transfer. This makes it a better option for those “what if” scenarios that you can’t predict.

Cabbage: Best for flexible funds

Loan Builder vs Kabbage is a great choice if you want a flexible funding option. In addition to being able to draw against your line of credit as needed, the funds are replenished as you make your payments. So, as long as you don’t meet your maximum borrowing limit, you can always access the capital when you need it. And if you hit your credit limit? Simply pay off your balance to start borrowing again – no additional credit application required.

PayPal LoanBuilder Borrower Requirements

Even if you’ve been turned down for a small business loan in the past, you may still qualify for loan Builder vs Kabbage builder financing. Unlike traditional lenders, LoanBuilder has more flexible criteria for getting one of its loan Builder vs Kabbage.

To qualify for a LoanBuilder loan, you must meet the following minimum requirements:

• A US-based business in a qualifying industry
• A minimum of nine months in business
• At least $42,000 in annual income
• No active bankruptcy
• A personal credit score of 620 or higher

Please note that these are minimum requirements and meeting these minimum requirements does not guarantee your approval.

You can review your offers during the application process without affecting your credit score. If you decide to go ahead with applying and being accepted for a loan Builder vs Kabbage, a hard credit pull will be initiated by the loan Builder vs Kabbage, which may have some impact on your credit score.

Cabbage line of credit borrower qualifications

Qualifying with Loan Builder vs Kabbage is also fairly easy if you choose a business line of credit. Cabbage’s minimum requirements are:

• In business for at least one year
• $3,000/month for the last three months
• A personal credit score of 640 or higher

Cubbage looks at your business performance when deciding whether to approve your line of credit. However, a hard pull will be done to check your personal credit.

Loan builder simplifies the cost of borrowing

One of the great features about Loan Builder loan is that only one fixed fee is charged, which makes it easy to understand the cost of borrowing. Fees range from 2.9% to 18.72% of the loan Builder vs Kabbage amount. The most creditworthy borrowers will be rewarded with the lowest fees. No origination fees or additional costs are added to your loan.

Loan builder loan terms range from 13 to 52 weeks. The terms depend on your loan amount. Every week, payments are automatically withdrawn from your business bank account.

Cabbage fee structure and payment terms

Cabbage has a slightly different fee structure. Fees are charged every month when there is a balance. Fees range from 2% to 27% and depend on your business performance. Your fees may change during your payment period. For example, you could pay a 3% rate for the first six months, then pay just 1.25% for the remaining six months. This is just an example and your actual fees may vary.

Cabbage has repayment terms of six, 12 or 18 months depending on the amount you borrow. If you borrow less than $10,000, your repayment terms will be set at six months. If you borrow $10,000 or more, you can choose between six, 12 or 18 month terms. Payments are withdrawn monthly through automatic drafts from your business bank account.

Loan builder for weekly payments

If you prefer to make weekly payments, Loan Builder is the better choice between the two lenders. If you want a loan Builder vs Kabbage with a single fixed fee structure that is easy to understand, Loan Builder vs Kabbage Builder is also a better option. However, if you prefer to make one monthly payment, consider applying for a Loan Builder vs Kabbage line of credit.

Loan application process

You can fill out an online application for both PayPal Loan Builder and Kabbage. Each application takes minutes to complete, and approval and funding are also quick and easy. Let’s take a closer look at the application process for each lender.

WHICH IS BETTER FOR YOUR BUSINESS LOAN NEEDS, LOANBUILDER VS KABBAGE?

Loan Builder and Kabbage are similar in that they offer alternative financial solutions for business owners that may not qualify for other loan Builder vs Kabbage or financial products. However, there are distinct differences between the two. Determine how much you need to borrow, nail down how you plan to use the funds, and make your decision from there.

CHOOSE PAYPAL LOANBUILDER BUSINESS LOANS IF…

• You prefer to make smaller weekly payments rather than a larger monthly payment
• You want one lump sum of money that can be repaid over time
• You need to borrow more than $150,000

CHOOSE KABBAGE BUSINESS LOANS IF…

• You’d rather make monthly payments
• You want a flexible line of credit that you can use when you need it
• You want instant approval with no hassles or paperwork