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Revenue Based Financing vs Kabbage: Which Is Right for Your Business?

Revenue-based financing and Kabbage offer different repayment structures; choose based on your cash flow predictability and growth stage.

⚡ Quick Verdict

Revenue Based Financing from SMB Capital Funding offers flexible repayment tied directly to your sales with no fixed monthly payments, making it ideal if your income fluctuates, while Kabbage (now part of Amex) requires consistent monthly obligations and has stricter qualification requirements. Choose RBF if you want breathing room during slower months and prefer a partner that grows with your revenue rather than against it.

Side-by-Side Comparison

Feature Revenue Based Financing Kabbage
Funding Amounts$25K – $2M$2K – $250K
Rates / Cost6% – 25% of revenueUp to 36% APR equiv.
Term LengthUntil repaid6, 12, 18 mo
Funding Speed2 – 5 daysSame day
Min. Credit Score580+ preferred640+
Collateral RequiredRevenue rightsNone
RepaymentFixed % of monthly revenueMonthly

When to Choose Each Option

Choose Revenue Based Financing 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

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

Why Businesses Choose SMB Capital Funding

SMB Capital Funding provides faster funding decisions and disbursement compared to Kabbage, getting capital into your hands when you need it most for time-sensitive business opportunities. As a direct lender with flexible credit requirements and access to loans up to $20M, SMB Capital Funding eliminates middleman delays and offers personalized terms that work for your specific business situation rather than forcing you into rigid lending criteria.

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Frequently Asked Questions

What is the difference between Revenue Based Financing and Kabbage?
Revenue Based Financing is a general funding method where you repay a percentage of your monthly revenue until a cap is reached, offering flexibility based on your business performance. Kabbage was a specific online lending platform (now acquired by American Express) that provided short-term loans and lines of credit to small businesses with fixed repayment terms. As an alternative, you might consider SMB Capital Funding, which offers various financing solutions tailored to small business needs and may provide terms that work better for your specific situation.
How quickly can I get funded?
SMB Capital Funding offers same-day to 48-hour funding for most products. Simply apply online and our team will reach out within minutes.
Is there a minimum credit score?
Most of our working capital products are available with a 550+ credit score. We look at your overall business health, not just your credit score.
Do I need collateral?
Most of our short-term business funding products require no collateral. Equipment financing uses the equipment itself as collateral.

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.