Saturday, September 23, 2023

Bluevine vs Kabbage: Which lender is best for your small business?

Bluevine vs Kabbage Which Lender is best for you small Business

Bluevine and Kabbage are well-renowned lenders to business people. In this article, we’re going to discuss how they both operate and which is better for small businesses.

Bluevine was founded in 2013 and is best known for their help for newer businesses. They help in freeing up cash from unpaid invoices. They offer services in credit offers as well as invoice factoring. Their six-month line of credit ranges between $5000-250000 (15 %-78% APR range) while invoice factoring offers range between $20000-5 000 000 (15-68 % APR range). Their loan terms are six months for the line of credit and up to 90 days for invoice factoring. Repayment options are weekly. Successful businesses are at least six months old for the line of credit offers and three months old for invoice factoring with a credit score of 600.

Kabbage, on the other hand, was launched in 2009 and offers credit to businesses. For a business to qualify for this credit, it has to be at least 12 months old. The best part about Kabbage is that they don’t have a minimum credit score and a business can apply for a loan ranging from $2000 to$150 000 (APR range-20%-80 %). Their loan teams are either 6 or 12 months with monthly repayments.

Between the two, Kabbage could be better for a small business as they offer a longer-term line of credit to companies with a credit score below 600 and lower annual revenue, and monthly repayments to enhance a business’s cash flow.