OnDeck vs Kabbage: Compare The Business Financing Options

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ONDECK VS KABBAGE COMPARE THE BUSINESS FINANCING
OPTIONS
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For every business owner in need of a small
business loan, there are more options available
than ever before. Actually, sometimes it becomes
hard for small business owners to choose the best
source of funding from an array of financing
options. Among many sources of financing, here is
a comparison between the two most reliable and
efficient alternative financing sources OnDeck
and Kabbage. In this article, well explain which
option to choose among them and how they differ
in terms of business loan programs, terms,
requirements, reviews, and features so you can
select the best small business loan option for
your business.

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KEY CHARACTERISTICS DIFFERENCE
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Here are some key characteristics that
differentiate them from traditional bank loans.

• Little DocumentationIn comparison with
  traditional bank loans, both OnDeck and Kabbage
  have quick application processes with little
  documentation requirement.
• Personal Credit ScoresBoth these alternative
  financing sources are best suited for startups
  and new businesses with low business credit
  scores. They focus more on personal credit score,
  and less on business credit score, making
  eligibility criteria flexible and easier for
  small businesses..
• Time in BusinessTraditional lenders require more
  than 2 years of time in business in order to
  approve you for funding. Whereas business loans
  from OnDeck and Kabbage have little time in
  business requirement than most bank loans.
• Cash flow RequirementsThe major benefit of
  alternative financing is that they focus more on
  a businesss cash flow and revenues as compared
  to documentation and credit histories. Similar to
  any funding source, they want to ensure you can
  repay them back easily.
• Quick Funding SourceAlternative financing
  sources like OnDeck and Kabbage offer a quick and
  easy way for small businesses to secure financing
  that often cant get traditional financing.

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BORROWER REQUIREMENTS
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Borrower Requirements

• Time in Business
• Both OnDeck and Kabbage have 12 months of time in
  business requirement.

Personal Credit Score OnDeck requires a minimum
credit score of 600, whereas theres no actual
personal credit score requirement for Kabbage.
Business Revenue OnDeck requires 100,000 per
year as business revenue, whereas Kabbage
requires 4,200 in revenue for the last 3 months.
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RATES TERMS COMPARISON
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Borrowing Amount With OnDeck term loans, you can
secure 5,000 500,000 and 6,000 100,000
for business lines of credit. With Kabbage lines
of credit, you can obtain up to 250,000 loan
amount.
Estimated APR For OnDeck term loans, the
estimated APR is between 9.4 99.7 and 11
63.2 for lines of credit. For Kabbage lines of
credit, the estimated APR is between 24 99
Collateral OnDeck requires a personal guarantee
possible blanket lien for term loans. Kabbage
doesnt require any personal guarantee for lines
of credit.
Term Length The terms for OnDeck term loans from
3 36 months and 6 months for lines of credit.
Kabbage has a 6 12 months term length for lines
of credit..
Borrowing Fees OnDeck charges 0 4 origination
fee for term loan and 20 monthly maintenance fee
for lines of credit. Kabbage has no origination
fee for lines of credit.
Repayment Terms The repayment terms for OnDeck
term loans are from 3 to 36 months and weekly
repayment terms up to 12 months for lines of
credit. Kabbage offers two monthly repayment
terms 6 months and 12 months.
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REVIEWS
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• OnDeck has A rating with Better Business Bureau
  (BBB) and 5-star ratings on many online review
  sites. The positive reviews indicate fast
  application, smooth funding process, outstanding
  customer support, and a high level of
  transparency. The negative reviews indicate
  high-interest rates, low prepayment discounts,
  and strict qualification criteria.

Kabbage also has A rating with Better Business
Bureau (BBB) and 5-star ratings on many online
review sites. The positive reviews indicate fast
funding, the easy application process, low
minimum qualifications, and additional features
like mobile app and the Kabbage Card. The
negative reviews are shared by those who are
unable to qualify or received higher interest
rates.
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ADDITIONAL FEATURES
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Kabbage Mobile App
Both OnDeck and Kabbage offer additional features
such as a mobile app for borrowers to manage
payments, contact support, and ask for funds.
Kabbage has an additional feature of a Kabbage
Card for borrowers to access its lines of credit
easily.
The features of the Kabbage mobile app include
Overview of current loan balances and any
transactions made.
You can make loan payments via the mobile app.
You can apply for lines of credit directly via
the mobile app.
Kabbage Card
With a Kabbage Card, borrowers can easily access
their lines of credit, allowing them to make
purchases from suppliers who will accept a credit
card payment but not a wire transfer.
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OnDeck Mobile App
The features of the OnDeck mobile app include
Overview of current loan balances and the status
of all account transactions.
You can call or email support directly from the
mobile app.
You can access and draw funds through the mobile
app.
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The Overview
ONDECK CAPITAL
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OnDeck Capital is a pioneer in alternative
lending and provides fast and quick access to the
large amounts of capital to small businesses.
Since its inception, OnDeck has provided the
capital of over 2 billion to new and established
businesses in various industries. The major types
of financing by OnDeck includes the following
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The Overview
KABBAGE
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Kabbage is another alternative lender that has
provided the capital of over 1 billion in small
business loans to small businesses. Kabbage
offers business lines of credit with loan amounts
ranging from 2,000 to 150,000 with an easy
application process than OnDeck and approval in
few minutes via their business-related accounts
such as QuickBooks, Square or PayPal. The
repayment time for lines of credit is six months.
Kabbage also offers short-term loans and smaller
loans than OnDeck. Kabbage doesnt charge
interest but has monthly fees ranging from 1 to
10 percent for the first two months, and 1
percent for the final four months. The Kabbage
credit lines are repaid with monthly payments,
each payment being one-sixth of the total amount
borrowed (plus months fees) without any early
repayment penalty plus savings benefit on early
repayment.
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THE BOTTOM LINE
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Both OnDeck and Kabbage offer financing
opportunities for small businesses in need of
working capital. When you need more money, a
larger loan amount and more flexibility, OnDeck
is a perfect choice. Kabbage is a great option
when you need more than 20,000, with the ability
to pay back the loan in six months. They both
have pros and cons, so its vital to prudently
assess your business financing options to
conclude which loan will fulfill your needs best
and generate the best return on investment (ROI).
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