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Short Term Business Loan vs Kabbage: Which Is Right for Your Business?

Short Term Business Loans offer faster approval than Kabbage, making them ideal for urgent cash needs.

⚡ Quick Verdict

SMB Capital Funding's short-term loans offer faster approval and more flexible terms tailored to your specific cash flow needs, while Kabbage (now part of American Express) works best if you already have strong credit and can qualify for their preset rates. Choose SMB Capital Funding if you need speed, personalized service, and don't want to be locked into a one-size-fits-all lending product.

Side-by-Side Comparison

Feature Short Term Business Loan Kabbage
Funding Amounts$10K – $500K$2K – $250K
Rates / CostStarting at 1.12x factorUp to 36% APR equiv.
Term Length3 – 18 months6, 12, 18 mo
Funding SpeedSame day – 48 hoursSame day
Min. Credit Score550+ OK640+
Collateral RequiredNone requiredNone
RepaymentDaily/weekly ACHMonthly

When to Choose Each Option

Choose Short Term Business Loan 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 Short Term Business Loan and Kabbage?
A Short Term Business Loan is a general category of financing that provides funds quickly, typically repaid within 3-18 months with fixed terms, while Kabbage is a specific online lending platform that offers flexible lines of credit with interest charged only on what you use. Kabbage tends to have faster approval and funding times but may come with higher rates, whereas traditional short-term loans often have more structured terms. If you're exploring your options, you might also consider SMB Capital Funding, which specializes in working with small business owners to find flexible financing solutions tailored to
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.