A Closer Look At Kabbage
With Kabbage.com, you do not get a traditional loan. You receive a line of credit with funds deposited in your Paypal account. This is a different approach from most other Kabbage Competitors. There is no cost to withdraw funds, and you pay only for what you take out. Credit lines start at $2,000 with a maximum of $100,000.
To qualify you must be in business for at least one year and have an annual revenue of $50,000.
Loans cannot exceed 6 months. Payments are one-sixth of the amount of the loan plus monthly fees.
Although listed by Forbes as one of the top most promising companies of 2015, you should be aware of the possibility of higher than expected interest rates.
Amazon Capital Services – Amazon Lending
A loan from Amazon is harder to come by. To qualify for funding, you must be an Amazon seller. This requirement presents a downside in that the Amazon website focuses on the product rather than the seller or manufacturer, and many times the buyer will go back to Amazon to repurchase the product rather than buying from the original source.
This is not good for your bottom line when you pay a membership fee to Amazon in addition to anywhere between 6 to 15% commission. Also, you may find large loans are very difficult to get. These applications favor mostly to top performers.
It usually takes about 5 days to obtain a loan. The interest rates are based on the amount of the loan and the borrower’s performance. However, they are usually less than 14%. There may be additional charges from Amazon Fulfillment Services for storing, packaging and shipping, if needed.
Paypal Working Capital
With Paypal, there is no credit check and if your loan is approved you will receive it in minutes.To qualify, you must process your credit card payments to your business through PayPal. This is probably one of the best Kabbage Competitors for a very small or beginning business.
There no interest charged. You pay a one-time fee based on the amount of your loan. The maximum amount that you can borrow is $85,000. However, the amount of your loan cannot exceed 15% of your annual sales.
Your eligibility for a loan is not based on your credit score, but on your Paypal history. There is no interest. Your payment is a percentage of daily sales deducted daily. If there are no sales on a certain day, no payment is required. You select the percent of sales you wish to be deducted for payment. The larger the percentage, of course, the quicker the loan is paid off.
Offers up to $150,000 for working capital loans, up to 2 years, and $500,000 for business expansion up to 4 years. To expedite your credit check, Fundation requests real-time access to your bank. Their interest rates range from 7.99% to 29.99% and are risk rated. A good credit score is definitely in your best interest. You should receive funding within 3 days,
In addition to a good credit rating, to qualify you need to be in business 2 or more years, have 3 or more employees, and make, at least, $100K per annum.
This company makes loans available only to Square merchants; that is, clients who process their card transactions through their company, Square. Eligibility is based on business volume and your history with Square.
Like Paypal, this company charges no interest. A fixed charge is added to the amount borrowed, and a fixed percentage of money from your daily or weekly card sales is withdrawn as payment. They may take a lesser amount if your business is experiencing an unexpected downturn.
Funds can usually be deposited to your bank account within 24 hours.
This popular company will loan as little as $5,000 up to $500,000. Like most online lenders they require at least one year in business and a 500+ credit score. Your short term loan can be from 3 to 6 months, Long term, from 15 to 36 months.
Based on your credit rating and their assessment, interest ranges from 13.99% to 36%. There is also a $20 monthly maintenance fee. Payments are automatically drawn weekly from your business bank account.
A calculator on this company’s website will tell you how much you can borrow and how much you will have to pay weekly. You can borrow as little as $2,500, or as much as 150,000. Interest rates between 9.9% and 30%. Additional fees are also charged.
You can get up to $150,000 from IOU Central. They have no upfront costs, and they say they approve 85% of the loan applications they receive. Their interest rate hovers at around 14%. They, too, withdraw their payments from the borrower’s account on a daily basis.
Kabbage Competitors vs Lendvo
Now let’s talk about Lenvo. They are also in the fast loan business, among many other things, but with difference. They approve loans based on the value of the borrower’s website. How do they do this?
Since their clients are online businesses only, they can analyze the borrowers’ websites. They understand what they refer to as “the unique attributes and business models of online web businesses.” They have ways to evaluate the borrower’s digital assets–a proprietary process that other Kabbage Competitors don’t have. This allows them to study the traffic, the website visitors, search engine rankings, and the domain name’s value, in ways that Kabbage Competitors can’t.
Because they specialize in online businesses only, they can determine the business’s stability based on the borrower’s digital assets. This allows them to do business with many online companies that other Kabbage Competitors are likely to refuse.
They will loan amounts up to $100,000, for periods of 30 days or up to 2 years, and usually release the funds in about 12 hours. If the borrower needs financing to obtain a premium domain name, they’ll do that, too, along with expert guidance in acquiring the name desired. Few companies offer this service. Unlike most Kabbage Competitors, Lendvo cares less about credit ratings and more about analyzing and rating their client’s digital value. Based on their research they are often able to offer loans of higher amounts at lower rates.
Lendvo, unlike Kabbage Competitors, will also finance premium domain names. Few companies specialize in domain names, and those that do usually demand large down payments. Lendvo will work with as little as 25% down and offers competitive interest rates.
So there you have it. You can readily see that the Kabbage Competitors are not all alike, and may vary in many ways. But all those described above are legitimate companies with good track records. If you’re looking for funding to expand your business, research carefully before you make up your mind. Most Kabbage Competitors have experts available to help you. Don’t be afraid to ask for their advice, if necessary. Remember, their success depends on your success.
The Internet has placed the world at our doorsteps, opening up a world of opportunity unimagined just a few short years ago. Stay-at-home moms are able to make a supplemental family income, or even support their families by working in cyberspace.
Hobbyists, inventors, and entrepreneurs are using computer technology in countless different ways, and the ability to receive funds almost instantly through the many online lenders becoming available is an important part of our evolving lifestyles.
But this growing field offers a wealth (no pun intended) of opportunities for scammers. We can’t stress enough, beware of scams. Many are easy to spot; misspelled words, poor grammar, etc. But some are so smooth you don’t even know you’re being scammed until it’s too late.