8.5
Overall Score3 days 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
Well for starters Shannon did an outstanding job at squaring away my "available funds issue", took literally 5 seconds to clear up the matter and BAM funds became available right there and then. Charismatic and gentle attitude that Shannon possessed during our conversation. Very upbringing in her tone of voice which is something I sincerely value the most when handling business matters especially in a timely manner. Would be more than happy to work with Shannon again in the near future. Thank you very kindly Shannon. Every at Kabbage Inc. please have a wonderful day also. Take care and bye for now 😇😎😊👍👌✌
Reply from Kabbage
Feb 15, 2019
Michael, thanks for this awesome review! We appreciate it!
We at SLR and Sons LLC was in need of capital to expand an accelerating business that is growing tremendously Matthew at Kabbage had assisted us in understanding our different agreement with Kabbage. We hope Kabbage will continue their success in helping small business obtain the necessary capital to grow.
Reply from Kabbage
Feb 15, 2019
Thanks for this review!
Had a good conversation with Christian today, needed help with a service issue.
Reply from Kabbage
Feb 15, 2019
Thank you for your review!
I called to get my payment deffered because of lack of funds this month and they were very helpful and very nice.
Reply from Kabbage
Feb 14, 2019
Thank you for your review!
Quick respond Easy and a pleasure to deal with
Reply from Kabbage
Feb 14, 2019
Thank for your review!
I have utilized Kabbage for a few years, and their service is great along with reasonable interest rates. Ease of transactions with Kabbage's website makes both direct deposits and payments fast and accurate. Recently I needed help in a payment I made and Jared, Brandon and Coresa from Kabbage customer service quickly solved the problem. I recommend Kabbage to any existing or new business for financial benefits to their company
Reply from Kabbage
Feb 14, 2019
Thank you for this awesome review, Jeff! We appreciate your recommendation!
Mathew was very helpful, he answered all my questions.
Reply from Kabbage
Feb 14, 2019
Thanks for the review, Tammy!
Sami was great. Quick to help and get answers. The experience was quick and helpful.
Reply from Kabbage
Feb 14, 2019
Thank you for the review! We are glad that you had a great experience!
The Kabbage team is very flexible to work with, and attentive to the merchants needs
Reply from Kabbage
Feb 14, 2019
Thank you for this review! We appreciate it!
I was having some technical difficulties with attaching one of my accounts. Jennifer was fantastic with helping me resolve this issue. While we were working together, one of my kiddos needed emergency surgery and she was so kind to send out a little care package to make his day. It was unexpected and so kind. Thanks so much for everything!
Reply from Kabbage
Feb 14, 2019
Kim, thank you so much for your review and sharing this story!
SAMI was WONDERFUL! Absolute pleasure to speak with her.
Reply from Kabbage
Feb 14, 2019
Thanks so much, Robert! We appreciate it!
Emma B helped me with a customer service issue that I had. She took care of everything promptly and professionally, thanks Emma!
Reply from Kabbage
Feb 14, 2019
Thank you for leaving this great review!
Jared was outstanding and friendly to talk with!
Reply from Kabbage
Feb 14, 2019
We appreciate your review, Steve!
Shannon was very informative and handled our interaction very professionally.
Reply from Kabbage
Feb 14, 2019
Thanks for your review!
Shannon was an excellent representative of Kabbage today. I spoke to her and she solved my problem quickly and friendly!
Reply from Kabbage
Feb 12, 2019
Thank you for your review! We appreciate it!
Very Pleasnt, Professional, Knowledgeable with answers to my questions. I was treated with respect and a Client
Reply from Kabbage
Feb 12, 2019
Thanks for leaving this great review!
Sami was polite, patient and an excellent ambassador for Kabbage
Reply from Kabbage
Feb 12, 2019
Thanks for your review! We appreciate it!
Brandon was fantastic to work with and resolve my problem. His demeanor and approach made working with him easy and fun.
Reply from Kabbage
Feb 12, 2019
Thank you for your review, Curtis!
Patty L did a great job of helping me resolve problems i had with my profile.
Reply from Kabbage
Feb 12, 2019
Thanks so much for your review!
Always available for cash flow, and with a small business it is extremely helpful. My bank has had some issues this week and Sami was able to help me with trace numbers and deposit information so that I can fix all my banking issues asap! She was friendly, efficient and courteous.
Reply from Kabbage
Feb 12, 2019
Thanks so much for your great review! We are truly glad that we can meet the needs of your business!
Jeff T was very helpful in helping me get a few things changed around in our account with cabbage as well as answering several of my questions.
Reply from Kabbage
Feb 12, 2019
Thank you for your review, Joseph!
I have been working with Kevin and Sami. They have always been courteous and responsive to my needs as a business owner. Thank you so much!
Reply from Kabbage
Feb 12, 2019
Thanks for your review, Gina! We appreciate it!
Josh S did an amazing job! He was patient and walked me through the website step by step and now I'm good to go. Thank you!
Reply from Kabbage
Feb 12, 2019
Thanks so much for your review!
Wow--Becca rocks! She confirmed my ability to use my advance again 7 days after final payment, which provided me much peace of mind. Super friendly and very pleasant to work with--thank you Becca!
Reply from Kabbage
Feb 12, 2019
Thank you for your review! We are glad that you had such a great experience!
I have been using Kabbage for my business for 1 year. The service I received has always been top notch. I wrote to Kabbage to find out some important information and was immediately sent a follow up email from Josh. I was able to take care of my issue very quickly. I would reccommend Kabbage to anyone who is looking for a business loan.
Reply from Kabbage
Feb 12, 2019
Thank you so much for your review, Darlene! We are truly glad that we are able to meet the needs of your business!
Matthew was fast, efficient and clearly answered all questions and explained the process.
Reply from Kabbage
Feb 12, 2019
Thank you for your review! We appreciate it!
“Emma B” was the best she kept her word and we really appreciate her.
Reply from Kabbage
Feb 12, 2019
Thanks so much for your review!
Josh was super helpful and easy to work with. Always great to work with understanding human beings so thank you very much!!!
Reply from Kabbage
Feb 12, 2019
Thanks for your review, Jenny! We are glad that you had such a great experience!
Nice, plolite, and help my concern. Be able to answer all my questions.
Reply from Kabbage
Feb 12, 2019
Thanks for your review!
They make it easy to get capital for small businesses. Plus their customer service is great!
Reply from Kabbage
Feb 12, 2019
Thank you for the review! We are glad that you had such a great experience!
Kabbage is a great tool for my business . I will be a Kabbage card holder from now on, Thanks Kabbage ,,
Reply from Kabbage
Feb 12, 2019
Thanks so much for your review!
Emma B was very attentive to my needs when I needed some information on my account! I was also very pleased my emails and phone call was handled by same person. I was very much pleased with the direct customer service.
Reply from Kabbage
Feb 12, 2019
Thank you for your review! We are glad that you had such a great experience!
Responsive and fast. Sami was quick to offer alternatives and to resolve my request.
Reply from Kabbage
Feb 12, 2019
Thank you for your review! We are glad that Sami is a part of our team!
Josh S called and let me know we were eligible for a very low interest loan with an easy pay back. We didn’t know we had been approved.
Reply from Kabbage
Feb 12, 2019
Thanks for your review, Faye!
Great staff very understanding and attentive
Reply from Kabbage
Feb 12, 2019
Thank you for your review, Rogelio!
Thank you so much for helping me out today Josh, wonderful customer service!!
Reply from Kabbage
Feb 12, 2019
Thanks for the review, Brian! We are glad that Josh is on our team!
KABBAGE has always been there for me, especially in those tight times! I am extremely grateful and am always referring other people and businesses to the magic of KABBAGE. Everyone goes beyond customer service requirement and tap into the human experience. For that I am loyal and will remain!
Reply from Kabbage
Feb 12, 2019
Thanks so much your awesome review, Bettye! We truly appreciate your support of Kabbage!
Zelenka Thanks for answering all my questions.
Reply from Kabbage
Feb 01, 2019
Thanks for the review!
I called to resolve a change in my account and Mathew fixed it right away. Awesome service
Reply from Kabbage
Feb 12, 2019
Thank you for your review! We are glad to have Matthew on our team!
Sami was great, because she was attentive and thorough.
Reply from Kabbage
Feb 12, 2019
Thanks for your review!
I got a lone with this company in then paid the complete loan back in now they're not allowing me to use their loan again I'm not sure why. And they're not letting me know details on why not.... Very disappointed with the customer service....
Reply from Kabbage
Feb 15, 2019
We want to apologize for this experience. You should received a email from our account management team explaining this decision.
Clear, easy and Fast! Becca was extremely helpful!
Reply from Kabbage
Feb 12, 2019
Thanks for the review, William!
Sami was great on the phone today. Quick and efficient and she helped me out.
Reply from Kabbage
Feb 12, 2019
Thanks for the review! We are fortunate to have Sami on our team!
I'm so THRILLED with Kabbage over now the past few years and the absolute lifesaver/gamechanger it's been for me and my business. As an entrepreneur, you sometimes run into cash flow issues or have an opportunity you have to leap on but are waiting on orders to come in or unexpected expenses, etc, but to have Kabbage there to fill the gaps has been amazing. And the best part, my experience EVERY SINGLE TIME with all customer service through the years is the sincere care they take to work with you to help make things happen, or adapt as needed and hold your hand with cheerful support (most recently just now with Jared - and every person I've interacted with when needed). Truly, their customer service is exceptional and their site easy and clear to navigate. WOW! THANK YOU Kabbage. I owe so much to you and recommend you anyone who is seeking this kind of support to choose KABBAGE, hands down!
Reply from Kabbage
Feb 12, 2019
Thanks for such an awesome review, Lynn! We are so glad that we are a lending partner for your business!
Best rates in industry. Friendly and very professional customer service. Christian is a very good adviser.
Reply from Kabbage
Feb 12, 2019
Thanks so much, Micaela! We are fortunate to have Christian on our team!
it was good he was able to help with my questions
Reply from Kabbage
Feb 12, 2019
Thank you for your review!
very user friendly good service very user friendly good service
Reply from Kabbage
Feb 12, 2019
Thanks for this great review, Bruce!
Hi Jeff I really appreciate you taking the time to advise me on my concern today and relieve me of some unwanted stress! Thanks
Reply from Kabbage
Feb 12, 2019
Thanks for your review! We are glad that Jeff was able to assist!
Hi in over 20 years of doing business with many people in customer service of all types of Businesses, I must say that Coresa C is the most efficient and professional person I've ever had the pleasure of doing business with. She executed each and every issue that was tabled and came up with strategic support to resolve our Business concerns. Thanks a bunch Coresa Regards, C. Proctor
Reply from Kabbage
Jan 30, 2019
Thanks for the wonderful review! We are thrilled to hear you had a great experience and are thankful for our great employees as well.
the experience of customer service with Brandon was great. I appreciate his customer service.
Reply from Kabbage
Jan 30, 2019
Thanks for the review, Kevass!