Which funding option is better for your eCommerce business: Payability or Kabbage?

Payability and Kabbage are backed by leading credit card companies. Both offer eCommerce sellers equity-free funding, but each has its own benefits and drawbacks.

post by:
Michel Goldstein

Company comparison

4.4
 

Payability

Fast Funding for eCommerce Sellers

KEY FACTS

  • Backed by Visa
  • Discounted rate fees for $100,000+ monthly revenue
  • No credit checks and lending amounts are based on sales history
  • Get large sum advance (up to $250,000)
  • $50,000 per month in sales and 9 months selling history to qualify
  • Funding for inventory or marketing only
VS
3.8
 

Kabbage Funding™

Financial Tools to Help Grow Your Business

KEY FACTS

  • Backed by American Express
  • Revolving line of credit from $2,000 – $250,000
  • FICO credit score of 640+ required
  • Requires 12+ months in business with $3,000+ in monthly revenue
  • No interest rates – but they do charge a variable monthly fee based on a 6- 12-, and 18-month loan

KEY FACTS

  • Backed by Visa
  • Discounted rate fees for $100,000+ monthly revenue
  • No credit checks and lending amounts are based on sales history
  • Get large sum advance (up to $250,000)
  • $50,000 per month in sales and 9 months selling history to qualify
  • Funding for inventory or marketing only
  • Backed by American Express
  • Revolving line of credit from $2,000 – $250,000
  • FICO credit score of 640+ required
  • Requires 12+ months in business with $3,000+ in monthly revenue
  • No interest rates – but they do charge a variable monthly fee based on a 6- 12-, and 18-month loan

Final Verdict

Payable has two plans for sellers to choose from: Instant Access and Instant Advanced. With Instant Access, you can receive an advance of 80% of the previous day’s revenue. The remaining 20% is held until your payment is received. Instant Advance will pay out 75-150% of one month’s revenue and you pay back between 12-25% of your invoices until the loan is paid in full. 

Kabbage uses a revolving line of credit and credit card where you can draw from a predetermined loan amount as you need it and make monthly repayments. The minimum required monthly revenue is lower than Payable, but so is the max loan amount. 

Both Payable and Kabbage are backed by leading financial institutions. However, Payable gets a higher rating in this comparison because it is based solely on your monthly revenue with no credit checks and the ability to be funded within the same day of application approval.