Is Kabbage legit or a scam? What you need to know | finder.com

Is Kabbage legit or a scam?

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Is Kabbage a legit online business lender? Find out how their reputation and security protocols stack up.

Founded in 2008, Kabbage is a safe, trustworthy direct business lender operating across the US. Read further to learn more about their website security and reputation as a lender.

Kabbage Small Business Line of Credit

Kabbage Small Business Loans

Kabbage provides small business owners a revolving line of credit up to $250,000 to grow their businesses.

  • Maximum Funding Amount: 250000
  • Minimum Funding Amount: 2000
  • Quick approval process
  • Must have been in business for at least one year
  • Must have annual revenue of $50,000 or more or $4,200 per month for the past three months

    Is Kabbage legit?

    Yes, Kabbage is a legitimate direct lender operating in all 50 states. But you’ll want to pay attention to the specifics of your business loan that vary based on your state of residence.

    What makes Kabbage unique?

    Kabbage offers an online business lending solution that gives you an ongoing line of credit of $2,000 to $250,000.

    • Fast turnaround. Most business lines of credit can be approved instantly, with funding deposited in about three days.
    • No origination fees. Kabbage does not charge origination fees, no matter which state you live in.
    • Geared toward small businesses. Kabbage requires only that its borrowers have at least one year of business under their belt and make $50,000+ annually or $4,200 every month.

    What to look out for

    • Complicated costs. You’ll be charged interest only on what you borrow, making it difficult to budget for exactly what you’ll pay on top of the balance.
    • Short-term financing. If you keep a balance on your line of credit for longer than a year, you could rack up hefty interest.

    Is applying for a business line of credit with Kabbage safe?

    Yes, Kabbage is a legitimate online business lender that is a member of several safe lending practices organizations, including the Innovate Lending Platform Association.

    • A+ BBB rating. BBB accredited since 2014, Kabbage has an A+ rating.
    • FDIC insured. All Kabbage business loans are issued by Celtic Bank, a member of the FDIC.
    • SSL encryption. Kabbage’s website is encrypted with Secure Sockets Layer protection to safeguard your information.

    What else do I need to know?

    Some borrowers complain about Kabbage’s complicated fee structure and steep APRs. Before taking a line of credit with Kabbage, it’s important to carefully read the fine print and understand that a business line of credit is typically meant for short-term ongoing financing.

    Bottom line

    If you have poor to fair credit and are looking for a loan to get your business off the ground, Kabbage could be a fit in the short term. But once your credit improves, assess your full lending options to find a better deal.

    Frequently asked questions about Kabbage

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