If you’ve been thinking about getting a loan from Kabbage or BlueVine but aren’t sure how to compare the two, we’ve done the legwork for you. We examine each lender’s product offers and suggest when to select one lender over the other in the table below.
Kabbage is a better fit for company owners with poorer credit ratings, whereas BlueVine is better for younger enterprises with proven income.
Summary of Kabbage vs. BlueVine
We looked at how Kabbage and BlueVine stack up against one another. In general, we suggest Kabbage to company owners that want a more conventional line of credit product or have lower credit ratings.
BlueVine, on the other hand, is better suited for customers wishing to settle outstanding bills or for fledgling enterprises. The table below provides a quick overview of the qualifying requirements and loan products offered by Kabbage and BlueVine.
We analyzed each lender’s credit and company criteria, as well as the products they offered, including rates, periods, and repayment alternatives.
When to Opt for Kabbage Over BlueVine, Kabbage may be a better option than BlueVine if you want a longer-term line of credit or monthly repayment. Your company’s annual revenue is lower.
Kabbage provides 6- and 12-month durations if you need a longer-term line of credit. BlueVine, on the other hand, only provides 6-month maturities on its line of credit.
BlueVine’s line of credit also demands weekly payments, which some borrowers may find challenging to meet. Find problematic for the financial flow of their business. Consider Kabbage in this scenario since the lender expects monthly rather than weekly repayment.
One disadvantage of utilizing Kabbage is that prepaying your loan will not save you much money in interest. While neither lender imposes a prepayment penalty, we calculate that if you prepay your loan balance, you will save less with Kabbage.
This is because Kabbage charges a monthly fee rate (rather than a standard interest rate) on its line of credit, which is higher in the first few months.
Kabbage offers less stringent credit standards for lines up to $100,000 than BlueVine, making it a better option for borrowers with poor credit.
BlueVine, for example, demands borrowers to have a minimum credit score of 600 or 650 to qualify for its line of credit product, but Kabbage has no such requirement. BlueVine’s credit standards are also stiffer if your company has less yearly income.
Thus Kabbage may be a better alternative for business owners with less revenue. If the firm’s yearly income is between $60,000 and $200,000, BlueVine needs business owners to have credit ratings of at least 650. BlueVine demands a 600 credit score for more than $200,000 per year for a yearly income.
Kabbage, on the other hand, requires only $50,000 in annual income to qualify for a $100,000 line of credit — and, of course, no minimum credit score.
Also Read: USDA Loan Income Limits
When Should You Use BlueVine Over Kabbage?
If you want to free up cash from outstanding debts, we prefer BlueVine over Kabbage. Your company is less than a year old, yet it has already generated income.
BlueVine is most likely the superior alternative for businesses attempting to bridge cash flow gaps created by unpaid bills.BlueVine is an invoice factoring solution that provides business owners with advances on invoices worth $2 million.
If you join up for BlueVine, you will be able to submit particular invoices to advance and collect 85 percent to 90 percent of the payment upfront. When your clients pay their invoices, you will receive the remaining 10% to 15% minus fees.
For illustration, if you send BlueVine a $10,000 payment, you can receive 85% of that amount, or $8,500, up the advance. Assume your consumer pays the bill in five days.
BlueVine charges a 1% fee every week. The charge would be $500 over five weeks ($10,000 x 1% = $100 and $100 x 5% = $500), and when your customer pays, you will receive the remaining 15% of the invoice, minus $500 in fees.
This equals $1,000 ($1,500 – $500). You would so earn $9,500 ($8,500 + $1,000) on the $10,000 invoice advanced by BlueVine.
BlueVine is also an excellent choice for less than a year old companies. To qualify for invoice factoring at BlueVine, you must have been in business for at least three months and at least six months to apply for a line of credit.
To qualify for a Kabbage line of credit, you must have been in the company for at least one year.
The higher revenue criteria of BlueVine are one disadvantage: to qualify for invoice factoring, your firm must earn at least $10,000 in monthly sales, and to qualify for a line of credit, your company must create at least $5,000 in monthly revenue.
What Is the Difference Between Kabbage and BlueVine?
When comparing these two lenders, we recommend that you first assess whether you match the primary eligibility conditions for each.
Kabbage, for example, needs firms to be at least one year established and have $50,000 in yearly sales to qualify for a $100,000 line of credit to Your firm must be at least three months established and produce at least $10,000 in monthly sales to be eligible for BlueVine invoice factoring.
It would be best if you also had a credit score of 530 or above. BlueVine’s lending terms are more stringent: you must have been in the company for at least six months and have produced $5,000 in monthly income in the preceding three months.
You will also require a minimum credit score of 600 or 650, depending on the size of your business’s sales. In addition, your average monthly bank account balance must be $1,000 or above.
BlueVine’s products both demand a personal guarantee, but Kabbage’s line of credit does not.
