Kabbage
check_circle VerifiedOn behalf of one or more approved U.S. Small Business Association (SBA) lenders, Kabbage is offering PPP loans via a simple online Kabbage application. Loan agreements under this program will be submitted to the SBA for approval and disbursement of funds.
The interest rate for this loan is 1% with a six-month loan payment deferment and a maturity of two years for repayment. The loan provides economic relief for costs incurred from February 15 to June 30, 2020.
Kabbage is also offering a low-rate gift card sales option to small businesses at this time. If you sign up for Kabbage Payments™, you will get a unique URL from which customers can buy online gift certificates in the amount of $15–$500. Until June 2020, you pay 2.25% per card transaction and 2.5% per gift certificate transaction.
Kabbage continues to offer line of credit small business loans with less of a focus on personal credit than that of a traditional bank or credit union.
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 annual revenue (they want to see more than $50k per year or $4,200 per 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 cover unexpected expenses.
Those who choose Kabbage business loans should remember that funding is not available to startups.
You can find Kabbage reviews below to learn how customers feel about the lender.
The Good
- Short-Term Loans
- Transparent Application Requirements
- No Closing or Origination Fees
- Resources
- Kabbage Card
- Cash Flow Insights
- Kabbage Desktop and Mobile App
- 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 fee
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; Kabbage weighs your personal credit score as less significant than some other lenders
No Closing or Origination Fees
Unlike many business loans providers, Kabbage does not charge any closing or origination fees. This saves borrowers money and can provide them with peace of mind that there are no hidden fees.
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 your 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.
Cash Flow Insights
Kabbage can help business owners understand crucial data with the Kabbage Insights™ tool. This tool brings together your checking account and other bank account information in one place so you can see the big picture of your business performance and cash flow patterns. Furthermore, it can generate balance forecasts and alerts that can inform your decisions as you prepare for future opportunities and needs.
Kabbage Desktop and Mobile App
Users can apply for funding and manage their business line of credit through the Kabbage mobile app and desktop version. The option for mobile usage is paramount for businesses that want to stay competitive, and the Kabbage mobile app averages 4+ stars by mobile reviewers for its utility.
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
- Exclusions
Short-Term Solutions
As mentioned earlier, Kabbage's lending platform 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.
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. Read Kabbage reviews below to learn how borrowers feel about the lender and the personal guarantee.
Exclusions
Like most online lenders, Kabbage does mention a few industries that aren't eligible for funding:
- Marijuana/CBD companies
- Firearms
- Gambling
- Financial institutions
- Lending organizations
- Nonprofits
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.
If you want to see how customers feel Kabbage measures up to other business lenders in regards to term loans, loan amounts, repayment terms, customer service, and more, check out Kabbage reviews below.
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Star Rating
997 Reviews
Review Breakdown
Sentiment Criteria
Smoothie King 1103
A business owner, I had applied for a PPP Loan with Kabbage and had mistyped my email address. A disaster as an email account is required to verify important information, for two days I did all I could to create the errant email account to no avail and to discuss my error with Kabbage. Today I was blessed to reached Zelenka. Once I explained my dilemma, she quickly relieved my anxiety, explaining the processes in place to correct my mistake and assuring me I would be helped. Simply stated, I needed fast help and timely help I received. More so I found Zelenka to be kind, considerate, thoughtful, and full of goodness. Her selflessness evident as well ... today I am certain I met one of the nicest people in the world today. It was a pleasure having the problem I had solved with Zelenka's assistance and dedication. Much appreciated Kabbage, please keep hiring and promoting people like her. Be assured, she is making you proud. Please pass on my personal thanks to Zelenka. Lastly, please let her know, she would be hired by all I know and that she is truly amazing. KUDOS in the highest!!!
Stephen Slack
The Application process was smooth, the approval was smooth, getting the money not so smooth (it seemed to get lost somewhere on the way to the bank). I will say that everyone I spoke to was extremely pleasant and tried to help locate it. Marcus C. was particularly helpful and quite determined to locate the missing funds.
Brenda Hart
Very helpful and patient customer service rep (Zelenka). Thank you for your help today, we appreciated your kindness. Dave and Brenda Hart
Martin Goins
Was a great experience with Rebekah M she was great need more of here in a lot of companys
King Yumyum
I've had ran into a few issues but Mark and customer service has helped out a lot his very very patient and understanding thanks
Success Solutions
The representative that assisted me was Ryan W, he was very professional and efficient. He immediately resolved my issue. I'm so grateful. Thank you
Natasha
To whom it may concern: Ryan W. Was so helpful, patient and at Atentative in helping me process my application. With so many small businesses applying for PPP Through Kabbage & with so much demand, I am so pleased to know that such great customer service was given to me. Ryan is a real asset to your company.
Santos Enrique Merino
I'm very please with Jules today she was very professional and helped me with my payment specially now that I need it the most. Thank you Jules.
David Mc Gee
Drama free loan. Excellent customer service. I had the pleasure to talk to Zelenka, she was amazing. Zelenka, resolve all my questions and issues. It's good to know a business still have good customer service employee's.
Walt Addison
Customer service is atrocious, spent over a month attempting to reach your support team. I finally got through to Matt R who helped me cancel my Kabbage PPP loan.
Laura Duquetts
Jeff T was a lifesaver!!! Even though it wasn't technically his department, he took the time to listen to my issue and was able to resolve it quickly and efficiently. Prior to this it had taken me 3 days of diligent effort to get through to someone , with another representative from the same department advising they couldn't help me. Jeff went above and beyond to help me and my small business during this chaotic time. His effort it beyond appreciated!!!!
Louis
By far the most exceptional customer service. Ryan W. was terrific in assisting me with the task at hand. He delivered above and beyond. Thanks again,
Lee Zimmerman
Stephenie W. was terrific -- she really helped me out quite a but and she was very patient and helpful. I had a TREMENDOUS amount f difficulty counting Kabbage by phone and email and it wasn't until I reached Stephenie that I was able to find someone o assist. She basically made my PPP loan possible and I'm very grateful to her.
Marie De La O
Attend my questions and answer them as soon as they can which its reasonable because of all people helping once. I am very thankful specially with Ryan W he was very and way to helpful at moment I need someone for assistant He was the one there thank you so much...
winston davis
Great people to work with . friendly staff
robert dowds
always responsive to my requests staff are pleasant at all times Thanks Robert
Kelly
My experience with Kabbage has been nothing but positive, espeicallly during Covid-19. Jules was so very helpful , as well as many others. Thank you Kelly
Zach Shagi
Ryan W is so helpful, thank you I really appreciate it!
Linda Dagley
Stephanie W. Was super helpful and friendly during our call. She answered all of my account questions and directed me to the office that could further assist me. Thanks much!
Robert Bryant
Ryan W, quickly solved my issue with changing my email address.
Sheritta Turner
I liked that Kabbage has great customer service an Ryan W was very concerned, he took the time out to explain my next steps to me in getting my loan into my account. This is my first time being a Kabbage customer an my service was great.
Oscar Guerra
Marcus C was phenomenal and a pleasure to speak with! He was very professional, knowledgeable, and his demeanor/tone was excellent! He is a true asset to your company and I can tell he will climb the ladder quickly if given the opportunity!!! My phone call lasted about 50mins and felt like only 10mins. Being a self employed person I have dealt with many clients and customer service people over the years. And Marcus was by far one of if not the best customer service person I've ever spoken to. He will go far in whatever he chooses to do in life! Once again a Big Thank You to Marcus for his outstanding customer service and for making my morning a good one!!! Have a great day! Oscar Guerra
Theodore Maranda
Ryan was very helpful and helped me achieve my objective. Thanks Ryan.
Reply from Kabbage
Jan 23, 2020
Thanks for taking the time to leave us a review!
Kundan kumar
I spoke with Marcus. He is outstanding and helped me out of his way. My thanks to Marcus for his performance and dealing with the customer.
Gilbryonna Shaw
Stephenie was super helpful! She explained to me my current options regarding skipping a payment & she explained options for I needed assistance in the future . She was also super friendly !
Mary Roman
Easy to use and navigate site, customer rep- Ryan W- is EXCEPTIONAL. Very helpful and very prompt in response.
Karen Stephens
Ryan W. was a tremendous support for the stressful and sometimes confusing PPP loan application process. It was so great to connect with a live person who understood the challenges we were facing and guided us through the process.
Brad Brown
Ryan and everyone has been absolutely perfect especially in this challenging time..Thank you to everyone I have spoken to and have helped me!!!!
Temitope Ak
Marcus is beyond average, he went above and beyond to get my account resolve.
Gleb
Those guys always nice and trying to help with any questions we have!
Emily Coplon
Everything was going smoothly but then there was a glitch and I couldn't not access my loan docs. It was extremely difficult to get through to a person but once I got through to Rebekah she fixed everything! She was extremely patient and stayed on the line to be sure it was all submitted properly. thank you
Jim
I applied for my PPP loan through Kabbage not having any experience with them. Overall they've been great, I needed some assistance with submitting documents. I called this morning and luckily was connected with Jules. Jules took the time to walk my through everything step by step, she looked over my application to make sure they had everything and within a few minutes she sent over loan docs. She was of great help! Thank you Jules, Jim
Chad Sells
They have always been there when I needed them and during the Covid-19 disaster they were quick to help with relief on my loans. The representative I had help me was named Jules and she was a huge help as she walked me through the process. I appreciate Jules and Kabbage’s support during these difficult times and I look forward to doing business for many years
gary nageli
They have always been attentive to their customers needs. Nothing negative to say.
Maria
Marcus was very professional and extremely helpful. He was able to walk me through everything with so much patience and understanding. Thank you so much , Marcus. I wish there were more professionals like you, so kind and helpful.
Horlick LawFirm
I found Kabbage by referral, and used it to apply for a PPP loan. My experience was extremely smooth, informative, and easy. I applied for a few online, and Kabbage was by far the easiest and best-explained interface. Also, Gus from customer service was extremely nice and took the time to help me through the process and explain everything to me very thoroughly and professionally. Great experience overall!
Ivan Ramos
Jules (Kabbage Representative) had quickly responded to my email and completed request with a detailed explanation. I just wish a lot more companies had representatives that are extremely helpful during these difficult times.
Paul Lapp
Zelinka was very helpful and very knowledgeable
Eddie Hakim
The Representative that helped me was GREAT - Her name is JULES Needed to defer payment because of this Covid19 Disaster As far as Kabbage as a whole it came in handy when I was desperate BUT if you need working capital they are way too expensive
Kathryn Vercillo
The company has provided excellent customer service particularly during the challenges my business has faced as a result of COVID-19
Good Price Restaurant Supplies
Jules promptly helped me out with my issue I appreciate Jules and Kabbage’s support during these difficult times I look forward to doing business for many years
Legendary Glitter
Jules has been a huge help during this COVID19 pandemic. She was quick to respond to my email after I was unable to get through via phone. Her assistance helped my business tremendously and I am very appreciative of her, and Kabbage altogether. I will forever be a customer! THANK YOU!
Jim L.
Jules was a tremendous help with deferring my loan payment that is due 4/28. Thank you Kabbage team for being so kind and considerate during this Corbid 19 pandemic. Our family is very appreciative of Kabbage and Jules.
GV
Due to Covid-19, I have been experiencing a temporary financial hardship. When reaching out for assistance, Ryan W. was quick to respond and helped me by applying the "Skip a payment" for my loan this month. This will allow me to get back on my feet and I greatly appreciate his expeditious service!!
Petersounds
Great customer service, thanks Jules (Kabbage team)was helping for the loan extended.
jean louks
Ryan W. Was really understanding and helpfull
AROMAZ HOME IMPROVMENT, INC
Ryan, the person answering the phone was helpfull and really great. I would give him a 10 star.
John De Hoyos, DPT
Mr. Ryan W. was the best and most knowledgeable that I have ever talk in my PPP application process. Kabbage hires the best people I Think.
Stephen
Thanks to Jules for the help with payment deferral!
Bryan L
Ryan W. with Kabbage got back to me right away with help on my loan, this was a great relief of stress to me in this terrible time with the Covid 19 crisis. Thank you