Kabbage business loans review

Kabbage fees and terms

Kabbage doesn't charge interest, but you will be assessed a fee based on the amount you borrow and your loan term. 

Every month you'll make a payment toward the principal along with a fee of 1.5% to 10% of your loan amount. The fee drops to just 1.5% after the first two months of a six-month loan or the first six months of a one-year loan.

How does a Kabbage line of credit work?

Kabbage offers short-term loans between $500 and $250,000 to businesses across the US. You can withdraw your funds through the Kabbage App, Kabbage Card and its website — and you'll only pay fees on what you borrow.

Since you'll be borrowing a line of credit and not a term loan, you can choose how much to borrow — up to your approved credit limit. But while you will have access to a line of credit, each draw is treated as a separate loan. This means repayment terms and interest may be different each time you make a draw.

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Kabbage lines of credit aren't available now. Compare these lenders instead.

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Lendio business loans Finder Rating: 4.75 / 5: ★★★★★			$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 300 legit business lenders.	Go to site More Info	Compare	loading Fetching your data…
OnDeck short-term loans Finder Rating: 4.6 / 5: ★★★★★			$5,000 – $250,000	As low as 35%	600+ personal credit score, 1 year in business, $100,000+ annual revenue	A leading online business lender offering flexible financing at competitive fixed rates.	Go to site More Info	Compare	loading Fetching your data…
National Funding business loans Finder Rating: 4.75 / 5: ★★★★★			$5,000 – $500,000	4% to 8%	Be in business at least one year and make at least $150,000 in annual sales. Other loan types have additional requirements.	Working capital loans and equipment financing, some high-risk industries may be eligible.	Go to site More Info	Compare	loading Fetching your data…
Fundbox lines of credit Finder Rating: 4.2 / 5: ★★★★★			$1,000 – $150,000	Not stated	6 + months in business, $100,000+ in annual revenue, 600+ credit score	Get flat rate, short-term financing based on the financial health of your business, not your credit score.	Go to site More Info	Compare	loading Fetching your data…
Bitty Advance business cash advances Finder Rating: 2.8 / 5: ★★★★★			$2,000 – $25,000	Not applicable	$5,000 monthly bank revenue, 6+ months in business, business bank account open 3+ months, 450+ credit score	With APRs in the triple digits, this is best saved as a last resort.	Go to site More Info	Compare	loading Fetching your data…

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How to qualify

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

• At least one year in business
• Annual revenue of $50,000 or monthly revenue of $4,200 for the past three months

Kabbage reviews and complaints

Several customers report they are 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 report thinking Kabbage's fees are too high and terms too short. Complaints around how Kabbage handles late payments are also fairly common.

How the application works

When applications are available, you can apply by filling out a form online or through Kabbage's mobile app. Kabbage requires you to connect your business checking account or PayPal account when you apply. You can also connect any other accounts your business uses, including the following:

After you submit your application, you should be informed of your approval status within a few minutes. If you're 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 withdraw my funds?

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

• Kabbage Card. Kabbage offers a card you can swipe like a credit card. You can used it anywhere Visa is accepted.
• Dashboard. Every 24 hours, you can use the Kabbage dashboard to draw funds and have them deposited directly to your checking or PayPal account.
• Kabbage App. Kabbage has an app you can use on iOS or Android to quickly draw from your line of credit and access your funds.

What sets it apart

Kabbage is a pioneer of online business lending that relies on alternative data, rather than your traditional time in business, revenue and credit score requirements. Alternative data makes it easier for small business owners who can't qualify for a bank loan to access funding at an affordable rate.

But Kabbage lines of credit aren't cheap. Its complicated deal structure makes it difficult to compare to other products. But generally, it's more expensive than many longer-term business loans and lines of credit.

Is Kabbage legit?

Kabbage is a legitimate online business lender that is owned by American Express. American Express is registered as a bank and has FDIC insurance on its accounts. This means it has to meet more rigorous standards than your typical online lender.

Kabbage not for your business? You can compare more business loans, including short-term lenders like Kabbage.

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.