7.7

Overall Score

91 User Reviews

20 days ago

Kabbage

verified
  • Short-Term Loans
  • Report Users
  • Resources
  • 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.

    Check rates with Kabbage

    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.

    Disclaimer

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    User Reviews

    4.6

    91 Reviews

    Your trust is our top priority, so we check all reviews for accuracy and relevance. Additionally, we do not allow companies to alter or remove reviews. Learn more

    Sort by:
    Shalom Tax Service LLC
    June 26th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Because of the customer service and the fact that they trusted me with a loan and gave me a chance, and gor that i will never let them down.

    Helpful?
    NER Recycling LLC
    June 26th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    You are there when we need you to grow. Periodic reviews and anticipated business growth . Customer service goes the extra mile.

    Helpful?
    Patricia Neal
    June 26th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Great customer service, great product. Easy to set up and get started.

    Helpful?
    Moshe Schwartz
    June 18th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    The interest rate on the loans are excessive

    Helpful?
    Gcar
    June 18th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Easy seamless process as stated on the web site

    Helpful?
    KBD
    June 4th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    It w was quick and easy. The gentleman I worked with was very professional and knowledgeable

    Helpful?
    J. Moore
    June 4th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Very responsive customer service and their website/loan system works extraordinarily well.

    Helpful?
    Barry
    June 4th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    easy to do business with and the people are very helpful.

    Helpful?
    laurie
    June 4th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    easy to use and deal with , gives reminders of offers

    Helpful?
    UniqueKrafts
    June 4th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Even though my interest rate is high, the support and financial assistance for my budding business has been immeasurable.

    Helpful?
    Reese Rotella
    May 8th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Easy to work with - easy process to get loan, really fast and Customer service was great as well as the follow up

    Kabbage Logo

    Reply from Kabbage

    Annie YorkMay 08, 2018

    Hi Reese! Thank you so much for your review. We appreciate your business! :) Sincerely, Annie York Customer Success and Experience

    Helpful?
    JAIRO GAVILAN
    May 8th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Excellent, fair, and reliable service. A great service to have

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    Reply from Kabbage

    Annie YorkMay 08, 2018

    Hi Jairo- Thank you so much for your 5 star review! We appreciate you! Sincerely, Annie York Customer Success and Experience

    Helpful?
    A Needed Resource
    May 8th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Quick,fast,no waiting! Start to finish was about 10 Minutes!

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    Reply from Kabbage

    Annie YorkMay 08, 2018

    Hello! Thank you so much! Sincerely, Annie York Customer Success and Experience

    Helpful?
    Ray Rice
    April 30th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Ease of service. The application process was painless and the customer service is very responsive. I have recommended Kabbage to a number of business associates because of my expirence with Kabbage as a funding source.

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    Reply from Kabbage

    Annie YorkMay 08, 2018

    Hi Ray- Thank you so much for your awesome review. And thank you for your recommendations. We have a new referral program that pays you for any referral that qualifies. You have to be signed up for the program to reap these rewards. Please check out the site and sign up: https://www.kabbage.com/referral-program/ Sincerely, Annie York Customer Success and Experience

    Helpful?
    Joshua Bean
    April 25th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Fees could always be a bit lower, but for the type of financing it is we have been very impressed.

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    Reply from Kabbage

    Annie YorkApr 25, 2018

    Hi Joshua! Thank you so much for your review. We appreciate your business! Sincerely, Annie York Customer Success and Experience

    Helpful?
    texas sunrise solar
    April 25th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    fees are a little high but very handy tool to have if ever needed

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    Reply from Kabbage

    Annie YorkApr 25, 2018

    Hello- Thank you so much for your review. We are here for when you need us. Please let us know if there is anything we can do to make your experience any better! Sincerely, Annie York Customer Success and Experience

    Helpful?
    Israel
    April 25th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Easy aplication, very fast depositing the money in bank account

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    Reply from Kabbage

    Annie YorkApr 25, 2018

    Hi Israel- Thank you so much for the kind words. We appreciate you! Sincerely, Annie York Customer Success and Experience

    Helpful?
    Ed4Online
    April 25th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    The Kabbage staff provides excellent customer service and is very professional in all their dealings.

    Kabbage Logo

    Reply from Kabbage

    Annie YorkApr 25, 2018

    Hi Ed- We are here for you. I am glad you've had great service; you deserve it! Sincerely, Annie York Customer Success and Experience

    Helpful?
    Amex Contracting
    April 25th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    because of the trust that the company had in me

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    Reply from Kabbage

    Annie YorkApr 25, 2018

    Hello- Thank you so much for your business. We are proud to have you as a partner! Sincerely, Annie York Customer Success and Experience

    Helpful?
    Maribel
    April 25th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Good experience with customer representative

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    Reply from Kabbage

    Annie YorkApr 25, 2018

    Hi Maribel- Our goal is to continue to exceed your expectations. Thank you so much! Sincerely, Annie York Customer Success and Experience

    Helpful?
    Amanda
    April 9th, 2018 Indianapolis, IN DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Because they help when needed and you need money fast.

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    Reply from Kabbage

    Annie YorkApr 10, 2018

    Hi Amanda- Thank you so much for your review! Sincerely, Annie York Customer Success and Experience

    Helpful?
    John Lusher
    April 9th, 2018 Roanoke, VA DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Ease of applying and terrific customer support!

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    Reply from Kabbage

    Annie YorkApr 10, 2018

    Hi John- Thank you so much for your business! Sincerely, Annie York Customer Success and Experience

    Helpful?
    Anita
    April 9th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Easy to apply, fast response, quick delivery.

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    Reply from Kabbage

    Annie YorkApr 10, 2018

    Hi Anita- We really appreciate you! Sincerely, Annie York Customer Success and Experience

    Helpful?
    TToys
    April 2nd, 2018 Stewart, TN DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Excellent customer service Fast and Easy to use

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    Reply from Kabbage

    Annie YorkApr 03, 2018

    Hello! Thank you so much! Sincerely, Annie York Customer Success and Experience

    Helpful?
    Dana Mauch
    April 2nd, 2018 Boiling Springs, PA DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Great service, easy to work with. Deposits are easy and very quick into my account.

    Kabbage Logo

    Reply from Kabbage

    Annie YorkApr 03, 2018

    Hi Dana- Thank you so much for your kind words! Sincerely, Annie York Customer Success and Experience

    Helpful?
    Bill English
    April 2nd, 2018 Butler, PA DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    very easy to work with when you need the funds.

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    Reply from Kabbage

    Annie YorkApr 03, 2018

    Hi Bill- We are so glad that we can be a resource for you! Sincerely, Annie York Customer Success and Experience

    Helpful?
    john david hoffmann
    April 2nd, 2018 Freeport, NY DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    very easy to use the system and get your funding quickly

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    Reply from Kabbage

    Annie YorkApr 03, 2018

    Hello John- Thank you so much for your awesome review! Sincerely, Annie York Customer Success and Experience

    Helpful?
    Whitney
    April 2nd, 2018 Lincoln, CA DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Awesome so far. I just wish that, after so many loans and payments, my limit would be raised a bit.

    Helpful?
    Mark allen
    April 2nd, 2018 Cottage Grove, MN DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Very fair, and were there when I needed them the most

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    Reply from Kabbage

    Annie YorkApr 03, 2018

    Hi Mark! We love this- thank you for choosing to do business with us. Sincerely, Annie York Customer Success and Experience

    Helpful?
    Bill Shaben
    March 26th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Overall ease of use and access. The platform is simple, the rates are fair per your individual situation

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    Reply from Kabbage

    Annie YorkApr 03, 2018

    Hi Bill- Thank you so much! :) Sincerely, Annie York Customer Success and Experience

    Helpful?
    Alpine Lock
    March 26th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Kabbage is a great resource for business funding! Simple, Fast, and affordable financing at your fingertips.

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    Reply from Kabbage

    Annie YorkApr 03, 2018

    Hello and thank you so much for the awesome review. We are proud to work with your business.

    Helpful?
    MikeA
    March 26th, 2018 DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Once using Kabbage, loans are fast and funds deposited into my PayPal account

    Kabbage Logo

    Reply from Kabbage

    Annie YorkApr 03, 2018

    Hi Mike- We are happy to serve your business. Thank you! Sincerely, Annie York Customer Success and Experience

    Helpful?
    Matthew's John's inc
    March 20th, 2018 Chicago, IL DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Easy application and processes. Great way to expand business credit

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    Reply from Kabbage

    Annie YorkApr 03, 2018

    Hello and thank you so much for the wonderful review! Sincerely, Annie York Customer Success and Experience

    Helpful?
    Anonymous
    March 20th, 2018 Lawrenceville, GA DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    credit line was not extended high enough for my business, and we were told it would rise, and has not.

    Helpful?
    A smith
    March 20th, 2018 Houston, TX DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    I will give a 5 if rates are better, especially after 3rd loan draw to build better relationship

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    Reply from Kabbage

    Annie YorkApr 03, 2018

    Hello! Thank you for your review. We completely understand and look forward to earning 5 Stars. :) Sincerely, Annie York Customer Success and Experience

    Helpful?
    C Slattery
    March 12th, 2018 San Clemente, CA DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Love the ease of working with them. Simple fast and efficient.

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    Reply from Kabbage

    Annie YorkMar 12, 2018

    Hello, Thank you so much for your review! We look forward to our ongoing partnership. Sincerely, Annie York Customer Success and Experience

    Helpful?
    E
    March 12th, 2018 Kernersville, NC DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Great service, great help. Can always count on speaking with a "live" person

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    Reply from Kabbage

    Annie YorkMar 12, 2018

    Hello, Thank you so much for sharing your thoughts. We are here for you when you need us. :) Sincerely, Annie York Customer Success and Experience

    Helpful?
    Rolando
    March 12th, 2018 Fontana, CA DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    to open account was easy. account manager is easy to work with. simple to use.

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    Reply from Kabbage

    Annie YorkMar 12, 2018

    Hi Rolando, We are so glad you are enjoying your experience with us. Thank you! Sincerely, Annie York Customer Success and Experience

    Helpful?
    Beccas
    March 12th, 2018 Melfa, VA DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    Always so willlng to help, and when I called everyone was so informative

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    Reply from Kabbage

    Annie YorkMar 12, 2018

    Hi Becca, Thank you so much for being such an awesome customer! Sincerely, Annie York Customer Success and Experience

    Helpful?
    Dave
    March 12th, 2018 Boise, ID DETAILS
    Value for your money
    Quality of product or service
    Customer service
    Company trustworthiness

    They do exactly what they say. Provide needed capital quickly!

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    Reply from Kabbage

    Annie YorkMar 12, 2018

    Hi Dave, Thank you for your business and trust! Sincerely, Annie York Customer Success and Experience

    Helpful?