8.6
Overall Scorea day ago
Kabbage is a lending program based in Atlanta, Georgia that developed an online algorithm to simplify the application and approval process for small businesses. Unlike traditional lenders, they look at business performance online through business checking accounts, payment processing, and shipping data – not manual forms – to automatically assess qualification. Kabbage boasts a high success rate: Over 90 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 or $4,200/month for the past 3 months) 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. Kabbage lines of credit are used to cover operating expenses while waiting on payments and receivables, cover operating expenses during slower seasons, and covering unexpected expenses. Those who choose Kabbage business loans should remember 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 great for businesses that need capital on an ongoing basis. Loan amounts go up to $250,000. Kabbage also has a unique borrowing model that allows the borrowers to only use what they need. Even if a business is approved for up to $250,000, the borrower only pays for what they take.
Loans from Kabbage are set up on a short-term manageable payment platform. They offer eligible customers 6-, 12-, or 18-month loan terms.
Additional advantages of Kabbage Small Business Loans:
- Loans are scalable and manageable
- Quick approval and fast access to funds
- Simple monthly fees
Transparent Application Requirements
In comparison to other lenders, 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 or $4,200 monthly for the past three months
- No pre-payment penalties on 6 and 12-month terms
- 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 customers can keep in their wallets and access their funds whenever and wherever they need them. Customers can apply for the Kabbage card on Kabbage's website through a brief form, and the card will be delivered to them in 7-10 business days. When they receive it, customers can activate the credit card online through their Kabbage account dashboard. The benefits of the Kabbage card include:
- Access to available funds at the point of sale
- Remote access to Kabbage account
- Business purchases and investments anywhere Visa is accepted
- No minimum purchase amount or limit to the number of purchases allowed in a day (but limitations include 25K daily card limit, 50K monthly, and 600K annually)
- No additional hidden monthly fee or cost
- 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 customers' 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. Customers simply need their financial documents and a quality credit score. If a customer qualifies, 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 customers 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 an 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 business owners 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 working capital for many businesses.
Personal Guarantee
When someone takes out a Kabbage loan, 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 customers are really promising to Kabbage when they take out a loan.
The Bottom Line
Kabbage is a great way for small business owners to secure short-term business loans. Borrowers should consider Kabbage as a lender if they need small amounts for immediate short-term needs, such as new inventory purchases or payroll. Potential Kabbage loan customers should read Kabbage business loan reviews if they want get a better grasp of what the company has to offer. Overall, if you don't mind waiting a few days for funding, can work with low amounts of working capital, 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
Needed Support help and Brandon was courteous, efficient and helped me right away. Thanks, Kabbage and Brandon!
Reply from Kabbage
Bethany GrippNov 19, 2018
Thanks for the review, Dave! We are thrilled to know you had a great experience with Kabbage!
We have a line of credit for my bicycle business with Kabbage, and were about to be late on a payment due to hazardous smoke from the California wild fires pretty much shutting us down. Called Kabbage to let them know I was going to be late and a very sympathetic and helpful person there by the name of Jimena M called her boss and granted me an extension long enough for the smoke to clear and business to resume. Thank you Jimena!
Reply from Kabbage
Bethany GrippNov 19, 2018
Hi Chris, thanks for the great review! Wishing you all strength and safety during this time! We are thankful you are safe and hope that continues.
Jimena was phenomenal! Pleasure to speak with, patient, and a big help!
Reply from Kabbage
Bethany GrippNov 19, 2018
Thanks for the review, Jim! Happy to hear you had a great experience with Kabbage!
Jared was very helpful and when I asked a question he was unsure about he asked his Manager. I was extremely pleased with his customer service!
Reply from Kabbage
Bethany GrippNov 19, 2018
Thanks for the review and happy to know you had a great experience with us!
Easy process and the customer representative ( Josh S ) was really helpful and great. Thank you
Reply from Kabbage
Bethany GrippNov 19, 2018
We are delighted to know you had a good experience with us! Thanks for the review.
My customer rep Matthew T was exceptional ! Very friendly, great customer service, really seemed concerned about my issue and I appreciate that
Reply from Kabbage
Bethany GrippNov 19, 2018
Thanks for the great review, Dale! Happy to hear you had a great experience with Kabbage.
Great experience, easy application on line. Called their toll free number and talked with Josh who was very friendly and informative and answered all the questions I presented.
Reply from Kabbage
Bethany GrippNov 16, 2018
Thanks for your review, Todd. We are delighted to know you had a great experience with Kabbage!
As a new client, Mathew was very patient and addressed all my concerns. He had a clear understanding and communicated well the products and services of Kabbage. Great customer service!
Reply from Kabbage
Bethany GrippNov 16, 2018
Thanks for taking the time to review Kabbage, Carol! We are happy to know you had a great experience with Kabbage!
Patty was very friendly and helpful! She took care of my need immediately.
Reply from Kabbage
Bethany GrippNov 16, 2018
Thanks for the wonderful review, Elizabeth!
Was not happy with how credit worthiness was detiemined it has hurt my business model and forced me to find alternative financing on short notice.
I need a little more time to make my monthly payment. I left a voicemail last night, and Sam S. contacted me promptly this morning by email, with a clear explanation of my options. Sam was very responsive.
Reply from Kabbage
Bethany GrippNov 14, 2018
Hi Adrian, happy to hear you had a great experience with us! Thanks for the review!
Josh was amazing! He answered my questions and really helped me with my issue...give him a raise!!!
Reply from Kabbage
Bethany GrippNov 14, 2018
Thanks for the review, we are delighted to know you had a great experience!
Jared was a great help to me today. Informative, friendly, helpful, with excellent follow-through. Great customer service.
Reply from Kabbage
Bethany GrippNov 13, 2018
Thanks for the review, Philip! We are delighted to hear you had a great experience!
Zelenka H Was most professional handling my request, and in fact offered additional assistance that will make kabbage account even more useful in future.
Reply from Kabbage
Bethany GrippNov 13, 2018
Thanks for the review, David! We look forward to our partnership together!
Called in with a customer service question and Josh was great. Personable, professional, and efficient. Definitely appreciate that Kabbage has employees like Josh to interact with customers.
Reply from Kabbage
Bethany GrippNov 13, 2018
Thanks for the great review, Jeff! We are thankful for our great customer facing teams as well.
Great service from Matthew adding an authorized user and explaining payment options.
Reply from Kabbage
Bethany GrippNov 12, 2018
Thanks Barry, we are happy to hear you had a great experience!
It is a pleasant and painless process. Zelenka H, my account rep, was super friendly and got the job done quick!
Reply from Kabbage
Bethany GrippNov 12, 2018
Thanks for the great review, Scott! We are happy to hear you had a great experience!
Josh was very helpful and very nice. Thanks for all you do.
Reply from Kabbage
Bethany GrippNov 12, 2018
Thanks for your review, Michele!
Customer service is the main aspect for my decision making in working with any company. I’m very impressed with the level of service that Kabbage provides and the friendly manner in which they deal with their customers. For example, just tonight my call and interaction with Josh simply could not have been better. That’s why I continue to be a Kabbage client.
Reply from Kabbage
Bethany GrippNov 12, 2018
Thanks for the great review! We are honored to partner with you!
I have great experience with Kabbage cust. service specially with Matthew, I was need it my payment amortization schedule for my terms and its took them to send me right away . Very good customer service. Thank you Matthew.
Reply from Kabbage
Bethany GrippNov 12, 2018
We are delighted to know you experienced great and timely customer service! Thanks for the review.
Very good, Matthew was very professional
Reply from Kabbage
Bethany GrippNov 12, 2018
Thanks for the review!
I have been working with KABBAGE since 2016 and they have an excellent web site which they have improved and it is easy to communicate with them. I recently had a good experience with Jared at KABBAGE main office and he followed up and was very helpful. I recommend KABBAGE to all Business Owners that they can use to fill in the gaps and fluctuations in their accounts receivables to keep cash flow intact..
Reply from Kabbage
Bethany GrippNov 12, 2018
Thanks Carols, we are so honored that you continue to choose Kabbage. We are proud to partner with you!
Brandon provided excellent customer service when I called Kabbage this morning. He was able to assist and answer all of my questions in a timely manner.
Reply from Kabbage
Bethany GrippNov 12, 2018
Thanks, Yvon, for the great review!
Kabbage has provided financial assistance to me for 4 years now and I have been very satisfied with their customer service. Recently Hurricane Michael has affected my forest consulting work and I called and spoke with customer representative Jared L. and he helped with getting my November 2018 payment moved to the end of my notes term.
Reply from Kabbage
Bethany GrippNov 12, 2018
We are so thankful you continue to use Kabbage! We sincerely hope you all continue to rebuild after the devastation from the hurricane.
Josh was a big help and very pleasant. I was very nervous to have to ask for a few more days to make my payment. Josh put me to ease. Thank you
Reply from Kabbage
Bethany GrippNov 12, 2018
We are happy to know that we could assist you when you need it most! Thanks for the review, Mark.
Zelenka outstanding customer services professional understanding great job
Reply from Kabbage
Bethany GrippNov 12, 2018
Thanks for the great review, Francisco!
I REACHED OUT TO CUSTOMER SUPPORT AT KABBAGE AND DENISA RESPONDED. SHE WENT ABOVE AND BEYOND HER DUTIES AND ESCALATED MY CASE TO A SUPERVISOR, WHO WAS KIND ENOUGH TA ACCOMMODATE ME. MY PAYMENT FOR PAYOFF WAS A DAY LATER THAN MY MATURITY DATE. KABBAGE WAS KIND ENOUGH TO PROCESS A "ONE TIME" COURTESY ON MY BEHALF. I WILL BE FOREVER GRATEFUL & WILL CONTINUE USING THEIR SERVICE. THEY SAVED ME $1400!! THANKS DENISA!!!
Reply from Kabbage
Bethany GrippNov 12, 2018
Thanks Kareem, for the review. We are happy to help our customers in any way possible. We are proud to partner with you!
I was having trouble getting my credit union added as the primary account. Sami took my calla nd got t resolved right away. She was very kind.
Reply from Kabbage
Bethany GrippNov 12, 2018
Thanks for the review, Charles!
Matthew was very knowledgeable. Thanks for the business loan. Trade Show Ready
Reply from Kabbage
Bethany GrippNov 12, 2018
Thanks for the review, Trade Show Ready!
This has been the best call I've ever had with Kabbage. Becca knew exactly how to help me, walked me through the process and things worked exactly as I needed. Her friendly and interactive attitude throughout the process made the call a "happy call" a "productive call" and I left feeling taken care of. You can't beat that !!
Reply from Kabbage
Bethany GrippNov 12, 2018
Thanks for the great review. We are so happy to hear you had a great experience with us!
Great service by Jimena! Appreciate the loan and having a ball building an amazing hot tub spa for my guests ... thanks for all your help!
Reply from Kabbage
Bethany GrippNov 12, 2018
Thanks for the review, Leslie! Good luck with the hot tub build!
Morgan did an awesome job assisting me with my application process!!
Reply from Kabbage
Bethany GrippNov 12, 2018
Thanks for the review, Tangela!
Matthew was great! I was unable to connect my old account to reapply to work with Kabbage again, and he spent a few minutes on the phone with me, let me jump off to take another call and resolved my issue while I was busy running my business. Love Kabbage, and Matthew is a rock star!
Reply from Kabbage
Bethany GrippNov 12, 2018
We are delighted that you had a great experience with us! Thanks for the review, Wendy.
Sam S. was both knowledgeable and helpful when I called in to discuss my account. She quickly solved my issue and left me quite impressed with Kabbage.
Reply from Kabbage
Bethany GrippNov 12, 2018
Thanks for the review, Brian!
Morgan is the BEST! She was VERY professional and handled my concern in minutes!
Reply from Kabbage
Bethany GrippNov 12, 2018
Happy to hear you had a great experience, Yolanda!
I am so glad that I gave Kabbage another shot. Abby went above and beyond to help overcome the challenges of technology and my account specialist has really gone out of his way to guide me on the best ways to responsibly take care of my account.
Reply from Kabbage
Bethany GrippNov 12, 2018
Nicky, sorry you had a technical issue, but we are delighted to know that it was resolved. Thanks for trusting us to be your funding partner!
Josh S was very helpful in solving a problem with linking accounts to my Kabbage acct. He researched and got back to me with an email that told me how to resolve the issue, which is unheard of these days! Thank you:)
Reply from Kabbage
Bethany GrippNov 12, 2018
Happy to hear the problem was resolved. Thanks for choosing Kabbage!
very friendly, respectful and quick to solve my issue. A+ service
Reply from Kabbage
Bethany GrippNov 12, 2018
Thanks for the review, Todd!
Great experience with CR Zelenka. I called to move my payment date.
Reply from Kabbage
Bethany GrippNov 12, 2018
Happy to hear you had a great experience, thanks for the review!
I have used Kabbage almost since their inception. Excellent customer service, convenient platform. Rates seem high, but are actually very competitive with similar services.
Reply from Kabbage
Bethany GrippNov 12, 2018
Thank you for your continued business! We are so thankful for our loyal customers!