8.8
Overall Score2 days ago
Kabbage is an online lending company based in Atlanta, Georgia and has developed an online algorithm that simplified the financing process for small businesses. They are unique in the business loan industry because they use data from business checking accounts, payment processing, shipping data, and other e-commerce sites to reach small businesses that are looking for loans. Kabbage boasts a high success rate: Over 80 percent of all Kabbage transactions come from repeat users.
For borrowers looking for a small business loan from Kabbage, having a low credit score won't necessarily knock them out of the running. Kabbage looks primarily at current revenue (they want to see more than $50k/year) and the amount of time in business (needs to exceed one year). Typical Kabbage borrowers also have a good social media presence and high amounts of inventory. Small business loans from Kabbage are typically used for inventory purchases, system upgrades, and marketing. Consumers that choose Kabbage should remember that they must have a credit score of 550 or higher and that funding is not available to startups.
The Good
- Short-Term Loans
- Transparent Application Requirements
- Resources
- Kabbage Card
- Repeat Users
Short-Term Loans
Loans from Kabbage are almost like a cash advance with lower interest - they are perfect for businesses that need a little bit of cash and can pay it back in a short amount of time. Loan amounts range from $2,000 to $250,000. Kabbage also has a unique borrowing model that allows the borrowers to only use what they need. Even if a loan is approved for $250,000, the borrowers only pay for what they take.
Business advances from Kabbage are set up on a short-term, manageable payment platform. The term of the loan is either 6 or 12 months, depending on your preference.
Additional advantages of Kabbage Small Business Loans:
- Loans are scalable and manageable
- Instant approval and fast access to funds
- Low rates and short terms
Transparent Application Requirements
Kabbage provides a great deal of information online without having to apply first. Their website includes the following helpful information:
- Companies need to be in business for one year before applying
- Companies need to be making a minimum of $50k annually
- No pre-payment penalties
- No closing fees
- No origination fees
- 1.5-10 percent interest rates
- Good resources
- No minimum credit score needed
Resources
Kabbage has a "Resources" tab on their website which connects to a blog. This site houses a good amount of content that businesses can access for free, including business news, webinars, eBooks, tips, and more. Under Kabbage's "How It Works" tab, there is a calculator that gives potential borrowers an estimation of their total payment based on the amount they plan to borrow and the length of the term. Typically, the longer the term of the loan, the higher the amount owed.
Kabbage Card
Kabbage has a new exclusive Kabbage card that you can keep in your wallet and access your funds whenever and wherever you need them. You can apply for the Kabbage card on Kabbage's website through a brief form, and the card will be delivered to you in 7-10 business days. When you receive it, you can activate the card online through your Kabbage dashboard. The benefits of the Kabbage card include:
- Access to your avilable funds at the point of sale
- Remote access to your Kabbage account
- Business purchases and investments anywhere Visa is accepted
- No minimum purchase amount or limit to the amount of purchases allowed in a day (but limitations include 25K daily card limit, 50K monthly, and 600K annually)
- No additional fees or costs
- Straightforward terms: with every transaction made by the Kabbage card, it creates a new, six-month loan that has the same fees and terms as your other six-month business loans.
Repeat Users
The average Kabbage customer utilizes the line of credit four times a year. This indicates that many businesses are using Kabbage's service and that the payment scale is affordable and sustainable. Additionally, the high number of repeat users indicates that Kabbage's application and approval process is streamlined for small businesses. You simply need your financial documents and a quality credit score. If you qualify, there is an instant approval, rather than an extended waiting period.
The Bad
- Short-Term Solutions
- Low Amounts of Capital
- Personal Guarantee
Short-Term Solutions
As mentioned earlier, Kabbage's loaning paradigm is based on the line-of-credit industry. When you apply for a loan with Kabbage, it is a short-term solution. Most Kabbage clients use their funds for short-term needs, such as equipment upgrades, purchasing inventory, or funding payroll. Kabbage does not offer traditional loans, large loans for bigger businesses, or other types of conventional funding. Another factor to consider is that Kabbage does not offer a SBA (Small Business Administration) service. Therefore, the borrower is not included in some key SBA programs. Other limitations include:
Low Amounts of Capital
Kabbage only lends a maximum of $250,000. This amount makes sense if there are only 12 months to pay back the loan, but it's not a large enough sum for many businesses.
Personal Guarantee
When you take out a loan with Kabbage, they state that "you personally guarantee that you will pay back your loan, but you do not have to put up any real estate or personal collateral." In many cases, a personal guarantee requires the borrower to put up personal collateral. This confusing language makes it difficult to know what collateral you are really promising to Kabbage when you take out a loan.
The Bottom Line
Kabbage is a great way to secure short-term financing for a business. Borrowers should consider Kabbage as a lender if they need small amounts for immediate short-term needs, such as new inventory purchases or payroll. If you don't mind waiting a few days for funding and you feel confident in your ability to pay back the loan (and don't mind having a personal guarantee attached to the loan), we recommend using Kabbage.
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User Reviews
Excellent customer service!!! I got my account set up with my new bank account without any problem.
Jimema, was able to answer my questions with a very pleasant attitude.
I had some questions concerning my wife's account. I spoke with Jared who was absolutely professional an courteous. He spoke with my wife to get permission to speak with me and then walked me through the procedures so that I was able to better handle the payment process and to better understand how her credit line is developed. Jared made it simple and I am now moreconfident in my dealings with Kabbage.
I received excellent customer service and my request was completed on a Sunday, followed up by Monday morning and done! Thanks Whitley
Reply from Kabbage
Annie YorkSep 18, 2018
Hi Chelle- Thank you so much for the shoutout!
I am very impressed with the flexibility Kabbage offers small business owners. Their customer service is awesome as well. Whitley was amazing in helping me resolve my account issues.
Reply from Kabbage
Annie YorkSep 18, 2018
Hi Akilah- Thank you! :)
Great customer service representative Thanks Jimena!
Reply from Kabbage
Annie YorkSep 18, 2018
We appreciate your business!
Whitley is the best! Was very helpful and responded right away even on a sunday! That made me so happy Whitley was able to assist me immediately and resolved my issue. Thank you Kabbage and Whitley!
Reply from Kabbage
Annie YorkSep 18, 2018
Thank YOU Alex for being so awesome!
Zalenka is great, ask for her she will answer all of your questions and she is very patient. I spoke with another representative His name is Terrell and he was horrible avoid him at all cost
Reply from Kabbage
Annie YorkSep 18, 2018
Hi Shaunte- Thank you so much- not only for the positive feedback, but for the constructive feedback as well. We have addressed the issue and look forward to providing you nothing but the best service moving forward.
Jared L. was very kind and helpful. I truly appreciate his assistance.
Reply from Kabbage
Annie YorkSep 18, 2018
Hi Margarett- We truly appreciate you. Thank you!
Zelenta H was very professional and patient.
Reply from Kabbage
Annie YorkSep 18, 2018
Hi Max- Thank you for your partnership with Kabbage!
I asked about a recent credit line increase and the response was quick and accurate. Kabbage has helped us a great deal within the retail trade!
Reply from Kabbage
Annie YorkSep 18, 2018
Hi Jeff- We love to hear this. Thank you so, very much!
Jared L. was extremely helpful and stayed on the line with me until everything was resolved. He walked me through all the steps. He even followed up and confirmed everything had been taken care of.
Reply from Kabbage
Annie YorkSep 18, 2018
Thank you so much for the feedback Heidi!
Josh was extremely helpful, he gave me all of the information I needed and answered all the questions I had.
Reply from Kabbage
Annie YorkSep 18, 2018
Hi Tyler- This is wonderful; thank you so much!
Jason was awesome and very helpful. 5 Star communication......
Reply from Kabbage
Annie YorkSep 18, 2018
Hi Matt! We give you 5 Stars as well! :)
We needed an extension and I called and talked to Zelenka and she was very gracious and she asked me if I understood what would happen. Zelenka was very informative and helpful. She has a winning personality. Thanks for the understanding
Reply from Kabbage
Annie YorkSep 18, 2018
Hi Kathleen! Thank you so much for taking the time to share your experience with Zelenka. We really appreciate it!
Jimena M was very professional and informative on the information that she provided me about my account. I have learned a lot more about the actual expectancy from Kabbage. I am glad that she was the representative that answered the phone when I called.
Reply from Kabbage
Annie YorkSep 18, 2018
This is wonderful- thank you so much!
I spoke with Jimena yesterday, and she was professional and informative. She let me know when my funds would be available following a recent payment. Thank you. Alane Casady Casady Refining Services, Inc.
Reply from Kabbage
Annie YorkSep 18, 2018
Hi Alane- Thank you so much for your business!
I've always had great experiences with customer service. Jared has helped me several times and was always very thorough in assisting me and answering any questions I may have.
Reply from Kabbage
Annie YorkSep 18, 2018
Thank you much for sharing your experience, Celine!
I had an issue and Jimena was able to help me out and walk me through it. Very professional.
Reply from Kabbage
Annie YorkSep 18, 2018
Hi Kim- We strive to make your experience the best. Thank you so much!
Whittley was exceptionally helpful and nice. She provided me with what I needed while I waited. Excellent service!
Reply from Kabbage
Annie YorkSep 18, 2018
Hi Muray- We love hearing this. Thank you!
Well so far is good just having trouble on just checking my balance on the phone
Very good place to work with. Will be back. Helped when we need money fast.
Reply from Kabbage
Annie YorkSep 10, 2018
Hello Julie- Thank you so much! We look forward to working with you again!
Zelenka... She is a perfect example of a great Rep for Kabbage. She didn't double check, she TRIPLE checked to make sure I had all docs needed for our accounting dept. and answered every question (even when asked repeatedly) with the utmost respect and cheerfulness. Thanks Zelenka! I hope I get you next time I call.
Reply from Kabbage
Annie YorkSep 10, 2018
Hi Nick- This is wonderful to hear. We are always here to answer as many questions as you have! :)
Zelenka was very professional and helpful. It's always nice to receive great customer service and this has been a wonderful experience with their staff! But I wish the interest rates wasn't so high on the payments. They would likely get more clients if it wasn't, making them even more competitive to banks and really standing out.
Reply from Kabbage
Annie YorkSep 10, 2018
Hello- Thank you so much for your review. We totally hear you. Always keep in mind that the quicker you pay off the loan, the less cost you will incur as we have no prepayment penalty. Please let us know if there is anything we can do for you!
I've been contact Zelenka to help with my business loan questions, she was on top of any of my concerns. She did her job fast and proper. Thank you Zelenka.
Reply from Kabbage
Annie YorkSep 18, 2018
Hi Vitaly- Thank you for taking the time to share your thoughts!
Great customer service. Zelenka H went above and beyond to help me with an issue.
Reply from Kabbage
Annie YorkSep 10, 2018
Hi Arthur- Thank you so much! :)
There was a miscommunication when I applied for a business loan. I accidentally sent in personal bank statements first and was approved for a certain amount that was much less than what I requested. My business bank statements were sent in later but disregarded because my loan and already been approved. I wish that my business bank statements would have been considered instead. I wanted to make sure the loan amount was still available since I never used any of it after being approved a few months ago and Whitley, was extremely helpful with assuring me that the funds were still there.
This employee just violated my privacy by sending an email directly to a third party with extremely false information. I am reaching out to management, Celtic Bank and Legal for answers. ******UPDATE******* since this review posting customer service handled the matter quickly and thoroughly. I am updating this review because it is not the product itself (the product is great)! but
Reply from Kabbage
Annie YorkSep 10, 2018
Hi Alisha- Thank you so much for providing an updated review. We totally understand how you feel and have a commitment to continued training and improvement implementation. Please let us know if there is anything we can do to better your experience.
I had an issue where I was unable to make my latest payment and Sam S. was very helpful and sympathetic in helping me navigate through a stressful situation.
Reply from Kabbage
Annie YorkSep 10, 2018
Hi Ernie- We are so glad that we were able to help you during a rough time. We appreciate everything you do!
I spoke with Moe today and she was very friendly, answered all my question and i now understand how the loan process work. I am grateful for Kabbage and the help with business funding.
Reply from Kabbage
Annie YorkSep 10, 2018
Hi Sylvia- We are happy to have you as a partner!
Kabbage will get you the money you need. Paying back can be a little stiff however they will work with you to reasonable satisfaction. Paige my last contact was super.
Reply from Kabbage
Annie YorkSep 10, 2018
Hi Lawrence- Thank you for your review. We understand that cash flow is not always as steady as you would like. We will always do everything that we can to help you in your time of need. Never hesitate to give us a call! :)
Whitley was very helpful and solved my issue quickly
Reply from Kabbage
Annie YorkSep 10, 2018
Hi Stephen- We are so thrilled that you are happy with the service level given!
KABBAGE is a great company. Whitley was so nice in working with us on a delayed payment request. We have used our credit line to the max several times the last 2 years. Thanks for helping small business survive .
Reply from Kabbage
Annie YorkSep 04, 2018
Hi Richard- Thank you so much for taking the time to share your thoughts!! :)
Getting the loan from kabbage has been super helpful in getting my business inventory restocked. The process was very simple and easy. Whitley was a great help and very nice to deal with. This is a great place to get funds quickly . Thanks to all the kabbage team members, especially Whitley.
Reply from Kabbage
Annie YorkSep 04, 2018
Thank you to YOU for being such a valued partner to us!
Paige responded quickly and handled my account right away. Thank You! Steve Powers
Reply from Kabbage
Annie YorkSep 04, 2018
Hi Steve- Thank you so much for your feedback. We really appreciate it!
Customer service got right on my issue and is helping me get the funds I need. Paige C is customer support lady who is helping me. She is doing great trying to help me. Thanks Jewels cleaming LLC.
Reply from Kabbage
Annie YorkSep 04, 2018
Hi Julie- You are wonderful. Thank you!
Ad a question about my payments and Jimena was helpful and professional. I also appreciate that they have weekend hours. Customer service here is quite good.
Reply from Kabbage
Annie YorkSep 04, 2018
Hi Michael- Thank you so much. We are here for you! :)
Whitley was VERY knowledgeable and answered all my questions easily. In fact, I learned things I did not know about Kabbage processes during our conversation. She was easy to relate to and very personable. Whitley is a great representative for Kabbage.
Reply from Kabbage
Annie YorkSep 04, 2018
Hello and thank you so much! You are truly valued!
I called to get help on our payment due the beginning of the month. We are currently experiencing cash flow issues. So it was so nice to be able to speak to a professional, polite and educated person on the phone. Whitley was very clear and concise in explaining our options and the repercussions of our decisions. I can now continue my daily functions without the stress and worry. Thank you Whitley you rock!!
Reply from Kabbage
Annie YorkSep 04, 2018
Hi Melodie- Hearing about our reps providing awesome service gives us such joy. Thank you so much for sharing!
Whitley was great and helped me with my account issue in a friendly professional manner.
Reply from Kabbage
Annie YorkSep 04, 2018
Hi Betty- Thank you so much! :)