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SBA Loans vs. FundKite Funding

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When it comes to finding funding for your small business, there are countless options to explore. Two of the most enticing choices are often Small Business Administration loans and FundKite funding.

FundKite is part of a new industry of financing companies that make it easier than ever for small businesses to acquire working capital, even the ones with low credit. However, this article will be focusing on just FundKite – because we’re different than other small business funders!


Several factors contribute to the style of funding best suited for a business. Below are the key points of receiving funding with SBA loans and FundKite compared and contrasted for an educated decision regarding the future of your business.

Approval Time

In terms of how long it takes to get the money into the business’s bank, FundKite has the SBA beat by a longshot. FundKite applicants are reviewed within minutes of receiving an application by in-house underwriters. As long as the merchant is timely with their paperwork, we can get funding in under 72 hours.

SBA loans normally take 60 to 90 days to process, which can make it difficult to solve immediate problems with a business, such as a broken down truck or pizza oven.

Term Length

FundKite typically offers shorter terms than SBA loans. While SBA loans normally have terms of 5-10 years, FundKite’s max term length up to 14 months.

Longer terms can bind you for years, especially if your business doesn’t work out. FundKite’s flexible terms can offer greater freedom to stop pursuing extra capital, or to acquire more.

Credit Score

SBA loans typically require a higher credit score (think 600+) to get approved. At FundKite, our whole-picture approval process ensures that you can get the funding you deserve, even if your credit score isn’t stellar.

Existing Loans

The SBA does not allow merchants to receive funding from other sources, while FundKite will fund up to being the 3rd position and help consolidate prior positions.

FundKite is boutique style funding and therefore very flexible. SBA loans can potentially limit options when it comes to funding businesses.

Amount of Capital

SBA loans can range from $500 to $100,000,000. FundKite on the other hand, ranges up to $2,000,000

Size Restrictions

SBA loans adhere by strict size restrictions to small businesses. If you don’t fit within their criteria of “small business,” you won’t qualify for a loan. You can find their size standards here.

FundKite doesn’t have any restrictions on size. We fund businesses big or small, and we won’t judge you if you have three employees, or three-hundred!

Interest and Factor Rates

One area in which the SBA has an advantage over FundKite is interest rates. SBA loans typically have 3-10% interest rates, depending on the length and amount of the loan. FundKite does not have interest, but rather factor rates; we purchase a business’s future receivables, meaning we could purchase $120,000 of future receivables from a business in exchange for providing $100,000 in funding, which would be a 1.2 factor rate.

Depending on the health of the merchant’s business, some funders in the industry will go up to a 1.6 factor rate, which is extremely high. FundKite will not over leverage the merchant with egregious factor rates, but exact rates are determined on a case by case basis.


As a small business owner, you have a wealth of choices when it comes to funding your dreams. FundKite and SBA loans can help you get there.

Being aware of the differences between financing options is a surefire way to make sure you get the most advantageous funding for your financial situation.

You can read more about FundKite business funding here, and SBA loans here.

Happy Funding!