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Kabbage vs Square Loans: Which Is Right for Your Business?

Both Kabbage and Square Loans offer fast funding for small businesses, but differ in approval speed, loan amounts, and eligibility requirements.

⚡ Quick Verdict

Kabbage and Square Loans both offer fast funding with minimal paperwork, but they're best for businesses with strong cash flow and established payment history rather than those with credit challenges or inconsistent revenue. SMB Capital Funding provides more flexible underwriting and works with a wider range of business profiles, making it a better fit if you've been turned down elsewhere or need customized terms.

Side-by-Side Comparison

Feature Kabbage Square Loans
Funding Amounts$2K – $250K$300 – $250K
Rates / CostUp to 36% APR equiv.Fixed fee (varies)
Term Length6, 12, 18 mo18 months max
Funding SpeedSame dayNext day
Min. Credit Score640+No hard check
Collateral RequiredNoneNone
RepaymentMonthly% of Square sales

When to Choose Each Option

Choose Kabbage when:

  • You already have an established relationship with Kabbage (AmEx)
  • Your business revenue primarily flows through their platform
  • You need amounts in the $2K – $250K range
  • You prefer their Monthly repayment structure
  • You've been declined elsewhere and want to explore all options

Choose Square Loans when:

  • You need funding fast (same day possible)
  • Your credit score is below 640
  • You want to avoid collateral requirements
  • You need amounts from $10K up to $20M
  • You prefer a direct lender with no broker fees

Why Businesses Choose SMB Capital Funding

SMB Capital Funding provides faster approval and funding timelines compared to Square Loans, while maintaining more flexible credit requirements that make it easier for business owners with less-than-perfect credit histories to qualify. As a direct lender offering up to $20M in capital, SMB Capital Funding eliminates broker intermediaries, giving you more control over the loan process and potentially better terms without third-party markups.

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Basic Eligibility Requirements

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Frequently Asked Questions

What is the difference between Kabbage and Square Loans?
Kabbage and Square Loans are both online lending platforms for small businesses, but they differ in their parent companies and integration options. Kabbage, owned by American Express, focuses on lines of credit and is integrated with accounting software, while Square Loans is tied to Square's payment processing ecosystem and works best if you're already a Square user. As an alternative, you might also consider SMB Capital Funding, which offers flexible financing options designed specifically for small business owners looking for quick funding without the necessity of being locked into a specific payment processor or accounting system.
Which lender is better for small businesses?
The best lender depends on your revenue, time in business, and funding needs. SMB Capital Funding offers flexible terms across all business profiles.
What is a good alternative to both of these lenders?
SMB Capital Funding is a direct lender offering same-day funding up to $20M with no collateral required and flexible credit requirements.
How do I compare business lenders?
Compare rates (factor rate vs APR), term length, funding speed, minimum credit requirements, and whether the lender is a direct funder or a broker marketplace.

SMB Capital Funding is a direct lender offering working capital solutions to US-based small businesses. Funding amounts and terms vary based on business qualifications. This comparison is provided for informational purposes. All products subject to approval.