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Kabbage business loans review

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Apply for a line of credit up to $250,000 and take your small business to the next level.’s rating: 4.2 / 5.0


Kabbage ‘s nontraditional approach to assessing your application opens up lines of credit to businesses that may have had trouble qualifying in the past. But its complicated fee system could put you at a disadvantage when it’s time to repay.


Min. Amount


Max. Amount


Product NameKabbage Small Business Line of Credit
Min. Amount$500
Max. Amount$250,000
Loan Term6 months to 1 year
Min. Credit Score600
Requirements1+ years in business, $100,000+ annual revenue or $4,200+ monthly revenue over last 3 months
Best of 2020
Finder experts pick Kabbage Small Business Line of Credit as a 2020 best pick for business loans.

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.
  • Short term. Although this can mean high repayments, it also means that you’ll be done with your loan that much sooner.

How does a Kabbage line of credit work?

Kabbage offers short-term lines of credit to businesses in all 50 states that might not have the best credit. Your business will have to meet some basic eligibility criteria, but if approved, you could have access to between $500 to $250,000. Since you’ll be borrowing a line of credit and not a term loan, you can choose to borrow as much or as little as you need up to your approved credit limit.

You can withdraw your funds through the Kabbage App, Kabbage Card and its website. This makes it easy to get the money you need when you need it, and you’ll only pay fees on what you borrow.

How much does a Kabbage line of credit cost?

Kabbage doesn’t charge interest on the money you borrow, but you will be assessed a few fees depending on how much you borrow and the length of your loan term. Each draw is treated as a separate loan, and every month you’ll make a payment toward the principal along with a fee of 1.5% to 10% of your loan. The fee drops to just 1.5% after the first two months of a 6-month loan or the first six months of a 12-month loan.

There is a four-day grace period before you’re charged a fixed fee based on your draw.

What are the benefits of using Kabbage?

  • Geared toward small businesses. Kabbage only requires that its borrowers have been in business at least one year and make $50,000+ annually or $4,200 every month.
  • Applying won’t hurt your credit. Kabbage won’t do a hard check on your credit until you accept an offer.
  • Link multiple accounts. The more business accounts you provide to Kabbage, the better your chances of being approved. Link up business accounts like your checking, PayPal, eBay, Amazon or QuickBooks to help back your ability to handle a line of credit.
  • Fast turnaround. Once you’re approved for a line of credit, a draw can be approved instantly and deposited in about three days.

What to watch out for

  • Short repayment terms. Kabbage only offers 6- and 12-month loan terms. This means you won’t be stuck repaying for years down the road, but you’ll also face steep monthly repayments.
  • Complicated fees. While there are no origination fees, Kabbage’s unique fee structure is a bit difficult to follow and can sometimes be more expensive than what you’d find with other short-term business lenders.
  • You can’t save much with prepayment. Kabbage front-loads fees. You won’t be able to save much by paying early unless you repay your loan in the first few months.
  • Smaller loan amounts. Kabbage might not be able to help you out if you’re looking for financing over $250,000.

Compare Kabbage to other top business loan providers

Data indicated here is updated regularly
Name Product Filter Values Loan amount APR Requirements
First Down Funding business loans
$4,000 – $300,000
5.49% to 22.79%
At least 1 year in business, an annual revenue of $100,000+, and a minimum credit score of 300
Alternative financing up to $300K with highly competitive rates.
Lendio business loan marketplace
$500 – $5,000,000
Starting at 6%
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
$2,500 – $5,000,000
7% to 30%
$300,000+ of annual revenue, 680+ personal credit score, in business for 3+ years
Get connected with short-term funding, SBA loans, lines of credit and more.
Kickpay e-commerce loans
$20,000 – $1,000,000
Not applicable
At least $250,000 in the past 12 months of revenue, e-commerce business, use a 3rd party fulfillment center for storing and shipping inventory, at least one US location.
Get a loan for your e-commerce business based on your sales history.
Credibly Business Loans
$5,000 – $250,000
6+ months in business, $180K annual business revenue, 500+ credit $15K+ in monthly deposits
Funding to cover business expenses with daily or weekly repayments.
$30,000 – $5,000,000
4.75% to 7.00%
650+ personal credit score, US citizen or permanent resident, 2+ years in business, $50,000+ annual revenue, no outstanding tax liens, no bankruptcies or foreclosures in past 3 years
Get funding for your small business with a government-backed loan and extended repayment terms.
LendingClub small business loans
$5,000 – $500,000
9.77% to 35.98%
12+ months in business, $50,000+ in annual sales, no bankruptcies or tax liens, at least 20% ownership of the business, fair personal credit score or better
With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
Monevo Business Loans
$500 – $100,000
3.99% to 35.99%
Credit score of 500+, legal US resident and ages 18+.
Use this connection service to get paired with a loan you can use for business.

Compare up to 4 providers

Is Kabbage legit?

Yes, Kabbage is a legit 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, member FDIC.
  • SSL encryption. Kabbage’s website is encrypted with Secure Sockets Layer protection to safeguard your information.

Kabbage was recognized at the Lend360 conference in 2018 for its noteworthy innovation in helping borrowers get easy access to funds at time of purchase.

What do borrowers say about Kabbage?

Borrowers are mostly pleased with Kabbage, though not all online reviews are glowing. As of May 2019, Kabbage gets an A+ rating from the Better Business Bureau (BBB), a 9.4 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. People with eBay stores in particular thought Kabbage’s fees were too high and terms were too short. Some also complained about the way Kabbage handled their late payments.

Some borrowers were also upset about how Kabbage responds to natural disasters. Two borrowers 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.

Is my business eligible?

To be eligible for a line of credit with Kabbage, your business must meet two basic requirements:

  • Age. Your business must be at least one year old.
  • Revenue. Your business must have an annual revenue of at least $50,000 or a monthly revenue of $4,200.

How to apply

Have your checking or PayPal account ready and include any other accounts your business uses, including:

  • Authorize.Net
  • Stripe
  • QuickBooks
  • UPS
  • eBay
  • Amazon
  • Yahoo

When you’re ready to apply, click the Go to Site button on this page to start an application.

  1. Create an account with Kabbage and enter your business’s name, address and phone number.
  2. Read over Kabbage’s terms of service and privacy policy, then click Get Started.
  3. Select your business’s industry and the structure of your company, then enter the establishment date and annual revenue. Click Continue.
  4. Enter information about yourself, including your Social Security number and date of birth. If you would like a Kabbage Card, select the option. Click Continue.
  5. Connect your bank account and other business accounts by logging in through Kabbage’s secure interface.

After you submit your application, you should be informed of your approval status within a few minutes. If you are approved, you’ll have access to your line as soon as the next business day and will be able to make draws whenever your business needs.

How do I get the Kabbage Card?

If you didn’t request a Kabbage Card during the application process, just follow these steps to complete a request:

  1. Visit the Kabbage website and log into your account.
  2. Click the button to request a card.
  3. Have the card mailed to your business or business address.
  4. Wait for the card to arrive, usually 7 to 10 days.
  5. Once the card arrives, log into your account and agree to the cardholder terms.
  6. Activate the card and set a secure pin.

After you’ve activated your Kabbage Card, you can use it whenever you need to make a withdrawal from your line of credit.

More about the Kabbage Card

Kabbage created its Kabbage Card to give you access to your line of credit whenever you need it and wherever Visa is accepted. Because it isn’t a credit card, there are no extra fees to withdraw from your line of credit.

Every time you use it, you create a new six-month loan with the same terms as your other loans. It won’t impact your credit, and there is no minimum purchase or limit to the amount of items you can purchase. However, you are limited to how much you can spend — up to $25,000 per day, $50,000 per month and $60,000 per year.

The Kabbage Card allows you to use your line of credit instantly. There’s no waiting period to transfer funds, and you’ll even be able to withdraw cash without any additional fees. You can use it online or in-store to pay for nearly any expense your business needs.

How do I withdraw my funds?

When you’re ready to borrow, you can access your Kabbage line of credit one of three ways:

  • Kabbage Card. Your Kabbage Card can be used anywhere Visa is accepted to make a purchase.
  • Dashboard. Every 24 hours, you can use the Kabbage dashboard to draw funds deposited directly to your checking or PayPal account.
  • Kabbage App. Kabbage has an app you can use on iOS or Android so you can quickly apply for a loan and access your loan funds.

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 good fit for the short term. It’s a quick and easy way to get money for your business and offers the convenience and flexibility many business owners want without hefty interest rates.

However, you’ll still want to compare other business loan providers so you can be sure you and your business find a great deal. And if you like Kabbage, you may also want to check out similar lenders to see what options you have.

Frequently asked questions

Business loan ratings

★★★★★ — Excellent

★★★★★ — Good

★★★★★ — Average

★★★★★ — Subpar

★★★★★ — Poor

We rate business loan providers on a scale of 1 to 5 stars based on factors like transparency, costs and customer experience. We don’t take into account elements like eligibility criteria, state availability or payment frequency — we save that for our reviews.

Read the full methodology of how we rate business loan providers to get a better picture of what goes into each star rating.

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