Kabbage small business cash loans review April 2018 | finder.com

Kabbage business loans review

Apply for a line of credit up to $250,000 and take your small business to the next level.

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Looking for a way to invest in your business without tapping into your cash flow? Kabbage offers business lines of credit that give you easy access to $2,000 to $250,000 through an online account.

Kabbage’s nontraditional approach to assessing your application also opens up this option to businesses that have had trouble qualifying in the past.

Product NameKabbage Small Business Line of Credit
Min Loan Amount$2,000
Max. Loan Amount$250,000
Minimum Loan Term0.5 year
Maximum Loan Term1 year
RequirementsMust have been in business for at least 1 year. Revenue minimum is $50,000 annually or $4,200 per month over the last 3 months.

Pros

  • Convenient application and access.
  • Borrow enough for your business.
  • Get an instant decision.

Cons

  • Loans for business use only.
  • Fees of 1.5% to 10% of the loan amount.
  • Business revenue must top $50,000 a year.
  • In business for at least one year.
  • Minimum of $50,000 in annual revenue or $4,200 per month over the last three months.

Kabbage is best for…

  • Quick cash. Qualifying only takes a few minutes and you’ll have easy access to cash as long as your credit line is open.
  • Fair credit borrowers. Kabbage’s nontraditional approach puts less weight on your credit score than other lenders might.
  • Short repayment terms. You have a choice between six and 12 months to pay off your credit line.

How does a Kabbage line of credit work?

Kabbage looks at how your business is doing, rather than your credit score, making the application process quick and easy.

  • Apply online. Create an online account by providing your email and creating a password. Tell Kabbage the name of your business and the type of industry it is.
  • Link your business information. Link your business’s checking account, along with any other accounts including PayPal, QuickBooks or Amazon.
  • What you need to qualify. Your business has to be at least one year old and have a minimum of $50,000 in annual revenue, or $4,200 per month over the last three months.
  • Quick decisions. In minutes you will be told if you’re approved and how much money you are qualified for. You’ll have access immediately and are only charged a fee once you draw on your credit line.

Getting your funds

There are three ways you can withdraw your funds once you’re ready:

  • Kabbage card. Will give you access to buy inventory, order supplies, jump on timely business opportunities or cover unexpected expenses.
  • Dashboard. Use the Kabbage dashboard to draw funds deposited directly to your checking or PayPal account. You can take out money as often as every 24 hours.
  • Kabbage App. With this app for iOS and Android, you can apply for a loan and access your money.

Benefits of a Kabbage line of credit

Kabbage looks at your business’s performance when considering your application, not just your credit score. Here are some other benefits of getting a Kabbage line of credit:

  • Wide range of available funds. You can borrow as much as you need for your business from $2,000 to $250,000 .
  • Minimal fees. You will not pay establishment fees and there are no penalties for making payments early.
  • Convenient application and access. You can apply online within minutes and you’ll have ongoing access to your line of credit 24/7.
  • Applying won’t hurt your credit. Submitting an application will have no effect on your credit. It’s only when you accept the credit line that Kabbage makes a hard credit inquiry that can cause your credit score to dip.
  • Linking business accounts ups your chances of approval. The more business accounts you provide to Kabbage, the better your chances at getting the loan you need. Link up business accounts like your checking, PayPal, eBay, Amazon or QuickBooks.

What to watch out for

  • Complicated fees. Kabbage’s unique fee structure is a bit difficult to follow and can sometimes more expensive than what you’d find with other online lenders. It also makes comparing rates with other lenders more challenging.
  • You can’t save much with prepayment. Kabbage front-loads fees, meaning that you won’t be able to save much by paying early unless you repay your loan in the first few months.
  • Short loan terms. Kabbage might not be able to help you out if you’re looking for financing over $250,000 that your business needs more than a year to pay off.

Compare Kabbage to other top business loan providers

Rates last updated April 19th, 2018
Name Product Product Description Min Loan Amount Maximum Loan Amount Requirements
LoanBuilder, A PayPal Service Business Loans
Customizable loans for business owners in a hurry with no hidden fees.
$5,000
$500,000
Annual business revenue of at least $100,000, at least 1 year in business, personal credit score of 600+.
LendingTree Business Loans
Compare multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
Varies by lender and type of financing
Varies by lender and type of financing
Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.
National Business Capital Business Loans
Get a large business loan to cover your financing needs, no matter what the purpose is. Startups welcome with 680+ credit score.
$10,000
$5,000,000
Your company must have been in business for at least 6 months and have an annual revenue of at least $180,000.
Excel Capital Management Small Business Loans
Get personalized financing options that suit your unique business needs in just a few simple steps.
Varies by loan type
Varies by loan type
Your business must operate in the US, be at least 1 year old and have monthly revenue of $15,000+.
OnDeck Small Business Loans
A leading online business lender offering flexible financing at competitive fixed rates.
$5,000
$500,000
Must have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+.
Kabbage Small Business Line of Credit
A simple, convenient online application could securely get the funds you need to grow your business.
$2,000
$250,000
Must have been in business for at least 1 year. Revenue minimum is $50,000 annually or $4,200 per month over the last 3 months.
Fora Financial Business Loans
$5,000
$500,000
Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.
LendingClub Business Loans
With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
$5,000
$300,000
2+ years in business; $50,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal credit
SmartBiz SBA Loans
Get funding for your small business with a government-backed loan and extended repayment terms.
$30,000
$5,000,000
Personal credit score of 650+; US citizen or permanent resident; Business must be 2+ years old; Annual revenue of $50,000+; No outstanding tax liens; No bankruptcies or foreclosures in past 3 years.

Compare up to 4 providers

What do customers say about Kabbage?

Customers are mostly pleased with Kabbage, though not all online reviews are glowing. Kabbage gets an A+ rating from the Better Business Bureau (BBB), a 9.3 out of 10 rating on Trustpilot — both solid scores. Several reviewers were happy with how easy it was to apply and manage their accounts. Others highlighted its customer service team as friendly and professional.

Go into other forums, however, and you’ll get a different picture of Kabbage. People with eBay stores in particular though Kabbage’s fees were too high and terms were too short. Others had difficulty qualifying because of the annual revenue minimum. Some complained about the way Kabbage handled their late payments.

Some customers were also upset about how Kabbage responds to natural disasters. Two customers said their credit limit was reduced to $1,000 after being hit by Hurricane Irma (one said they previously had a limit of $38,000). Both claimed the decision was based on location, rather than business performance. A third customer said their credit line was also reduced after being hit by Hurricane Harvey.

How much does a Kabbage line of credit cost?

You won’t be charged interest for a Kabbage loan, but you will be charged fees. The fee structure is as follows:

  • 1-10% of your selected loan amount for the first two months for a six-month loan or six months for a 12-month loan.
  • 1% of your selected loan amount for the remaining months.
  • Every month, you pay back 1/6th or 1/12th of the loan amount plus the monthly fee, depending on how long your loan term is.

Late payments come with a four-day grace period before you’re charged a fixed fee based on the balance.

Ready to apply?

Click ‘Go to Site’ button on this page to get your online application started. Have your checking or PayPal account ready, and include any other accounts your business uses, including:

  • Authorize.Net
  • Stripe
  • QuickBooks
  • UPS
  • eBay
  • Amazon
  • Yahoo
You could find out if you’ve been approved within minutes and receive access to your approved credit line as soon as the next day.

Bottom line

Kabbage is a quick and easy way to get money for your business. It offers the convenience and flexibility many business owners want without mounting fees and no interest. If Kabbage isn’t right for you, consider comparing other business loan providers.

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