Kabbage summary
Pros
- No prepayment penalties
- Range of repayment options, no hidden fees
Cons
- Interest rates tend to be high
Editorial score
Online experience
Has learning resources, access to rates, mobile app
Customer services and support
Multiple ways of reaching lender, wide range of hours
Variety of loan types
Offers all loan types
Loan amount range
Loan amount up to $250K
Eligibility
Loans available to most credit types, revenue levels, and businesses
What Kabbage Offers
- Lines of credit up to $250,000
- 6-month, 8-month, and 12-month loan terms
- Unsecured loans approved in minutes
- Monthly fees ranging from 0.25% to 3.50% with no hidden charges
- No up-front fee
- Fees charged only on outstanding balances
- No prepayment penalties
- Withdrawing and depositing cash is free at any of the ATMs in the network
Why Choose Kabbage?
Kabbage provides close to immediate credit lines to cover any type of expense. Once approved, you are notified of how much credit you have and which of their three loan terms you qualify for. You will have access to funds and can draw on the approved amount anytime you need extra cash for your business.
Minimum Qualifications
Loan application with a bank or credit union is time-consuming. Kabbage, on the other hand, has only a few requirements for business owners seeking funding:
- You must be in business for at least one year.
- Monthly revenue must be at least $3,000
- You must have a credit score of at least 640
- You must be at least 18 years old.
- All applicants must be U.S. citizens.
What You Need to Provide
Kabbage asks for the following basic information during the application process:
- Your name
- Your business name
- Home and business address
- Business tax ID
- Social Security number
You’ll also be asked to create login credentials and to connect your bank account. Kabbage provides the opportunity to connect additional business accounts, such as QuickBooks, eBay, Amazon, PayPal, and Stripe. Linking multiple services gives Kabbage a better picture of your current financial status.
Unlike most traditional lenders, Kabbage considers multiple factors when determining whether or not to extend a line of credit. In addition to your credit score, the lender looks at:
- How long you’ve been in business
- Your average monthly revenue
- Revenue consistency
- Cash flow
- Transaction volume
- Seller rating, if applicable
Kabbage will verify your business account information and perform a hard credit check to determine your credit score.
Kabbage Application Process
- After submitting your application, it is reviewed by an automated system that calculates your loan amount and the term.
- If approved, you'll know in minutes how much funding you qualify for.
- If your current financial situation does not allow your business to qualify for a Kabbage loan, the company keeps your information on file and reviews periodically. You do not have to reapply in the future as Kabbage will notify you when funding becomes available.
The same process may increase your credit line as your business grows. To qualify for a Kabbage loan and maintain an active profile, all information you submit must be accurate to the best of your knowledge. Kabbage requires users to maintain the accuracy of their information and reserves the right to close accounts otherwise.
Repayment Terms
Kabbage offers 6-month, 12-month, and 18-month loan terms. The total monthly fees incurred over the loan term range from 2-9% for 6-month loans, 4.5-18% for 12-month loans, 6.75-27% for 18-month loans, and are subject to change for future loans drawn under the available line of credit. Loans incur a loan fee for each month you have an outstanding balance. Not all customers will be eligible for the lowest fee.
Deposits
If your checking account is online, you can make a mobile deposit of eligible checks through the Kabbage mobile app, transfer money from another bank, or make cash deposits at one of thousands of in-network ATMs nationwide.
How Safe Is It?
Kabbage is certified for customer privacy. Your login information is never shared, and the company does not sell customer data to third parties. Kabbage is backed by American Express, and offers the privacy policy of American Express Kabbage Inc. on their website.
Help & Support
Kabbage offers extensive resources covering the most critical aspects of running a business. Kabbage’s FAQ section provides answers to common questions on the loan process and service features.
You can contact Kabbage via phone or email. Hours are from Monday-Friday 8am-9pm (EST). Emails are delivered through the website or directly to support, and messages are typically answered within 24 hours.
Summary
Kabbage, an American Express Company, is a useful lending option for the modern small business. The automated review and approval process simplifies the loan application process giving you time to focus on running your company. The requirements are straightforward, and Kabbage considers factors other than your credit score when determining whether your business qualifies. The terms and fee structure are easy to understand, and there are no hidden fees. All loans are structured as credit lines. That way, you can withdraw money as needed, and you only have payments if you have an outstanding balance.
Multiple withdrawal methods and an automatic payment system make Kabbage preferable for on-the-go business owners. You have access to cash wherever and whenever you need it so that your business can continue to operate uninterrupted if cash flow slows.
View Rates
Physical Address
Kabbage
925B Peachtree Street NE
Suite 1688
Atlanta, GA 30309
Disclaimer
* If eligible, you can be approved in minutes for a line of credit from $2,000 to $250,000 when we are able to automatically obtain your business data and verify your bank account. If a manual review is required, it will take longer to provide you with a decision. Kabbage Funding™ offers access to a commercial line of credit between $2,000 to $250,000. Each draw on the line of credit will result in a separate installment loan. All loans are subject to credit approval and are secured by business assets. Every loan requires a personal guarantee. Monthly fees range from 2-9% for 6-month loans, 4.5-18% for 12-month loans, 6.75-27% for 18-month loans, and are subject to change for future loans drawn under the available line of credit. Not all customers will be eligible for the lowest fee. Not all loan term lengths are available to all customers. Eligibility is based on creditworthiness and other factors. Not all industries are eligible for Kabbage Funding. Pricing and line of credit decisions are based on the overall financial profile of you and your business, including history with American Express and other financial institutions, credit history, and other factors. Lines of credit are subject to periodic review and may change or be suspended, accompanied with or without an account closure. Late fees and return payment fees may be assessed. Loans are issued by American Express National Bank. Kabbage Funding™ is a trademark of American Express.
Caroline Banton is a freelance writer of business and finance articles that have been featured in The Huffington Post, The Motley Fool, Time, MSN, PYMNTS.com, GOBankingrates.com, SaleMove, and MyBankTracker.com. Before becoming a writer, Caroline had over fourteen years of experience working at the World Bank. Caroline has an MBA from Johns Hopkins University. She writes for BestMoney and enjoys helping readers make sense of the options on the market.
