Which Funding Solution is Right for Your eCommerce Business? Kabbage Vs. Shopify Capital

Kabbage and Shopify Capital both offer tools for eCommerce sellers to solve cash flow problems. However, each has its own advantages and disadvantages.

post by:
Donna Cohen

Company comparison

3.8
 

Kabbage

Financial Tools to Help Grow Your Business

KEY FACTS

  • $2,000-250,000 available line of credit for those who qualify
  • Funds available within 3 days of approval
  • Full credit check required
  • 6, 12, and 18 month fixed term loans based on how much you draw from your LOC
  • Requirements: 12+ months in business with $3,000+ per month in revenue
  • Funded through American Express for quick access to funds
  • Use the money wherever you need it
VS
4.6
 

Shopify Capital

Equity-free capital for eCommerce Merchants

KEY FACTS

  • Funding determined by sales history and projected revenue
  • No credit checks
  • Available to Shopify sellers via invitation only
  • Funding available 24-48 hours after approval
  • Repayment made based on a percentage (8-17%) of daily sales 
  • Only available with Shopify platform
  • No spending restrictions 

KEY FACTS

  • $2,000-250,000 available line of credit for those who qualify
  • Funds available within 3 days of approval
  • Full credit check required
  • 6, 12, and 18 month fixed term loans based on how much you draw from your LOC
  • Requirements: 12+ months in business with $3,000+ per month in revenue
  • Funded through American Express for quick access to funds
  • Use the money wherever you need it
  • Funding determined by sales history and projected revenue
  • No credit checks
  • Available to Shopify sellers via invitation only
  • Funding available 24-48 hours after approval
  • Repayment made based on a percentage (8-17%) of daily sales 
  • Only available with Shopify platform
  • No spending restrictions 

Final Verdict

Shopify takes the cake when compared to Kabbage. While it’s only for sellers who use their platform, Shopify beats out Kabbage with fast funding, flexible repayment, and no credit checks. Shopify pre-qualifies you based on your sales history and inventory turnover so they have all the information they need to get you approved and funded quickly. Additionally, Shopify’s merchant cash advance system allows you to repay the funding as you make sales. This ensures you are never in a bind while trying to make a fixed monthly payment in a low-sales month. Use your funding for marketing, payroll, overhead, or inventory to continue to expand your business.