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, it looks 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. There's a chance you can secure funding even with bad credit since Kabbage looks primarily at current annual revenue (the company wants to see more than $50,000 per year or $4,200 per month for the past three months) and the amount of time in business (which 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.
Keep reading for our comprehensive Kabbage review including the pros and cons of choosing this lender or jump straight to the more than 1,000 Kabbage reviews below to hear what small business owners think of the company.
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. The company offers eligible customers 6-, 12-, or 18-month loan terms.
Additional advantages of Kabbage small business loans:
In comparison to other lenders, Kabbage provides a great deal of information online without requiring prospective borrowers to apply first. The website includes the following helpful eligibility information regarding the loan docs that will be required as well as how the loans work:
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.
Kabbage has a "Resources" tab on its 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. But keep in mind that the repayment term and overall fee structure depends on your revenue, time in business, business credit, and other factors.
Kabbage has an exclusive 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:
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 Checking™ is an FDIC-insured business checking account available to consumers.
Kabbage Payments™ lets you accept card payments online through professional invoices and to create a custom pay link to accept card payments online or to sell gift certificates.
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.
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.
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.
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.
When someone takes out a Kabbage loan, the company states 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.
Like most online lenders, Kabbage does mention a few industries that aren't eligible for funding:
Rebekah was very great, efficient and helpful! She Followup and followed through with helping me make the changes I needed to make to my account, it was quick and she did what she stated she would do and didn’t give me the run around. It bugs me when other companies do that. I appreciate your good service, thank you!
Zelenka was such an exceptional help! She was able to help with my inquiry compassionately and comprehensively. Really appreciate all the care that she took in giving me advice and thoroughly explaining what next steps I needed to take. Thanks to Zelenka, Kabbage rocks at customer service!
I am extremely happy with the service I received from Kabbage, especially their representative Stephanie W. She is a star!! Her professionalism, patience, and her amazing customer service helped me dearly. She needs to be recognized by Kabbage for her outstanding customer service. I thank Kabbage for their help during these tough times and I am also very happy that they have amazing team members like Stephanie W to help citizens with their needs. You are amazing Stephanie W!
Amber H and the rest of the Kabbage team quickly answered my emails and answered all my questions. They helped process my PPP loan and I can not thank them enough. 5 Star effort by their team. A very big help
I called customer service for information on my PPP loan. I spoke to Stephanie W. She was very polite, helpful, and informative. She answered all my questions in great detail. Best customer service experience ever!
The phone bank structure is inept at best as I was on hold many days for hours trying to get through while trying to work, but you have one rep named Marcus C. that took the reigns of my file and met all my needs his professionalism is excellent!
I really loved service and dedication of Stephenie W. Who taken care my problem with patience and responsibility. She listened to my request and work throughout to get it fixed. Really feel happy working with Stephenie W. This 5 star is for you. Good luck..
I'm writing to praise Zelenka for her excellent customer service. She answered my questions with knowledge, kindness, and professionalism. Thank you!
My business has been utilizing Kabbage's Business Loan Platform for the last 4 years. Very, very happy with their service. I was helped by a wonderful lady in Atlanta today...her name was Zelenka, and her customer support was "Outstanding". Thank you Zelenka!
Amber H. was very fast and efficient in getting my issue resolved!
Mora Junior Etienne
Matt was respectful, patient and knowledgeable
Kabbage lending was the worst financial company I have ever worked with. Their customer service is ZERO. They were 100% non responsive, they failed to reply to an overnight letter, and email requesting a simple phone call. Their phones auto answers then times out and hang up. Because of their horrible service I was not able to apply for a PPP loan.
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!!!
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.
Very helpful and patient customer service rep (Zelenka). Thank you for your help today, we appreciated your kindness. Dave and Brenda Hart
Was a great experience with Rebekah M she was great need more of here in a lot of companys
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
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
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.
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.
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!!!!
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,
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...
Great people to work with . friendly staff
always responsive to my requests staff are pleasant at all times Thanks Robert
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
Ryan W is so helpful, thank you I really appreciate it!
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!
Ryan W, quickly solved my issue with changing my email address.
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.
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
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.
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 !
Easy to use and navigate site, customer rep- Ryan W- is EXCEPTIONAL. Very helpful and very prompt in response.
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.
Ryan and everyone has been absolutely perfect especially in this challenging time..Thank you to everyone I have spoken to and have helped me!!!!
Marcus is beyond average, he went above and beyond to get my account resolve.
Those guys always nice and trying to help with any questions we have!
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
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
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
They have always been attentive to their customers needs. Nothing negative to say.
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.
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!
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.
Zelinka was very helpful and very knowledgeable
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