9.1
Overall Score7 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
Star Rating
741 Reviews
Review Breakdown
Sentiment Criteria
Simple,pragmatic, effective way for business loan
Reply from Kabbage
May 22, 2019
Thanks so much for your review! We appreciate your feedback!
Spoke to Sami who was truly a professional from beginning to end. Answered my questions and even gave me other information that I was not yet aware of. Thank you again.
Reply from Kabbage
May 22, 2019
Thanks so much for your great review! We appreciate your feedback!
I had a problem with getting into my account and was helped by Zelenka. She was very friendly and fixed the problem in minutes. With people like Zelenka working for Kabbage they should always have customers.
Reply from Kabbage
May 22, 2019
We really appreciate you taking the time to leave this awesome review!
I apply for a line of credit and was approved in one day, I had funds for my continuous business grow low interest rate helps build credit - friendly always a live representative- Kabbage thank you
Reply from Kabbage
May 22, 2019
Thanks for leaving us a five-star review!
The customer service is patient and understanding, especially my most recent call with Patty. Who took the time to go over the concerns I had regarding my existing loan. It has been a help to have this line of credit available the only wish is that when taking a new loan that the payment for that month isn't pushed to the next month due date.
Reply from Kabbage
May 22, 2019
We appreciate your honest feedback!
Great service, Armani was very helpful and courteous on the telephone I appreciate him taking the time to Resolve my concern.
Reply from Kabbage
May 22, 2019
We really appreciate you taking the time to leave us a review!
Sami assisted me. She was very courteous and helpful. It is appreciated.
Reply from Kabbage
Sep 18, 2018
Hi Margarett- We truly appreciate you. Thank you!
Zenlenka was very helpful in helping me understand my loan and answered every question
Reply from Kabbage
May 16, 2019
Thank you for your five-star review!
Sami was very helpful, and made our account with Kabbage feel very secure.
Reply from Kabbage
May 16, 2019
Thanks for your review! We appreciate it!
Had a pleasant chat with Vrinda this morning. She was awesome. Answered my questions and gave me additional information that was of great help to me. Thank you.
Reply from Kabbage
May 16, 2019
We really appreciate you taking the time to leave us a five-star review, Aftab!
Sami is great got all the information I needed Thanks
Reply from Kabbage
May 16, 2019
Thanks for taking the time to leave us a review!
Vrinda was very helpful in assisting me.
Reply from Kabbage
Sep 18, 2018
Thank you much for sharing your experience, Celine!
I advised SAMI that our account was funded last Thursday with a significant deposit but the ACH withdrawal scheduled for today may not clear until Wednesday when my deposit (large personal check drawn on a small bank) is schedule to clear and provide good funds in my account. SAMI was very helpful.
Reply from Kabbage
May 13, 2019
Thank you for your great review, Frank!
Shannon did a great job explaining the solution to my issue, and told me what to do every step of the way.
Reply from Kabbage
May 13, 2019
Thank you for taking the time to leave us a review!
Jess was amazing. Took my issue and personally took care of it within 24hrs. I love when a company empowers its employees to remedy a situation instead of transferring the call.
Reply from Kabbage
May 13, 2019
Thanks so much for your honest feedback! We are glad that we were able to resolve everything!
Vrinda was the only person that could help me. She was awesome!
Reply from Kabbage
May 13, 2019
Thanks for letting us know! We appreciate your five-star review!
Janafer was Very sweet and professional she helped me the topic that I was concerned about. Well done
Reply from Kabbage
May 13, 2019
Thanks for the review! We appreciate your feedback!
Always great customer service, Zelenka was a great help in getting additional users added to the account, and ensuring we were set up for success. Thanks!
Reply from Kabbage
May 09, 2019
We appreciate you leaving us a five-star review!
Jess R was awesome! She helped answer both of my questions.
Reply from Kabbage
May 09, 2019
Thanks so much for your review, Sean! We appreciate it!
was very easy to do. service reps were very helpful!! thank you JESS R!!
Reply from Kabbage
May 09, 2019
We really appreciate you taking the time to leave a review!
Emma B was awesome! She answered all my questions so patiently and professionally. Thank you!
Reply from Kabbage
May 09, 2019
Thank you for taking the time to leave us a review!
Fast, friendly & knowledgeable!! Thanks Sami for your help!
Reply from Kabbage
May 09, 2019
Thanks for your review!
Vrinda was very pleasant to work with and solved my issue right away. It always locks up my account after I pay with e-check. Maybe you guys could fix that so I don't have to call in every time.
Reply from Kabbage
May 09, 2019
Thanks for leaving us with your honest feedback! We are looking into trying to find a solution for that issue.
Vrinda made it very easy to take care of my problem and it was handled very quickly. I was on and off the phone in less than 5 minutes.
Reply from Kabbage
May 06, 2019
Thanks for your review, Tory!
I had a customer service issue regarding this months payment. Emma B, your rep, did an outstanding job of resolving my issue for both now and the future. She was very clear in sharing with me the various options and then she helped me make a decision on the best one. I appreciate her friendly and courteous conversation. She was terrific...Give her a raise (but not w/my money) haha
Reply from Kabbage
Apr 18, 2019
Thanks so much for your review!
Just spoke to Jared and he helped me extend my upcoming payment. He was very personable and efficient. Hope I get him again in the future!
Reply from Kabbage
May 06, 2019
We really appreciate this review! Thanks for sharing it with us!
Sammi handled my problem quickly and efficiently.
Reply from Kabbage
May 06, 2019
Thanks for your review!
Ari was extremely helpful and answered my question regarding my account. Thanks for the excellent help.
Reply from Kabbage
Sep 04, 2018
Hi Betty- Thank you so much! :)
Sami was very helpful. Answered all my questions. The information was spot on. Thank you.
Reply from Kabbage
May 06, 2019
Thanks for taking the time to leave us a review!
Sami was great to talk to. The listened and spoke with professionalism and kindness. She assisted us with our account information and we are very appreciative. Thank you again Sami! Darryl Monroe, The Body Wrap Clinic
Reply from Kabbage
May 06, 2019
We really appreciate your review! Thanks for using Kabbage!
Zelenka was so helpful! She answered all my questions and was so professional and very sweet. It was a pleasure to talk with her!
Reply from Kabbage
May 06, 2019
Thank you for taking the time to leave us this five-star review!
Jess R. was patient, friendly and helpful.
Reply from Kabbage
May 06, 2019
We really appreciate this review!
I had an issue with a payment I sent and needed help adjusting it and Denisa went over an above to help me resolve my issues. Her timely response and help to this matter has made being a Kabbage customer a great experience!
Reply from Kabbage
May 06, 2019
Thank you for leaving us a review, Brandon!
My experience with Kabbage has been great so far, I just wish the credit line would increase more often being, I have been with this company for 5 years. Josh is a great customer service representative. He does his job very well. Thanks
Reply from Kabbage
Dec 21, 2018
Thanks for the review. We are thrilled to know you had a great experience with us!
I always appreciate the willingness to work with me whether it is on obtaining funds or helping me out when I have to make adjustments based on my cash flow. A great company with great people!
Reply from Kabbage
May 02, 2019
We really appreciate your review! We are proud to work with your business!
Kabbage is OK it helps me fund my small business payroll. But I don’t like the fact that amount of available funds keeps fluctuating all the time. They made it difficult to transfer my default business account.
Reply from Kabbage
May 02, 2019
Thanks for your honest feedback!
Called for copies of contracts. Matthew sent them immediately and showed me how to locate in my account. Great Customer service!!!!
Reply from Kabbage
May 02, 2019
Thank you so much for your review!
Hi Patty helped me see how much I was able to get and what is ruining my finding options. Thank you , Charles
Reply from Kabbage
May 02, 2019
Thanks for your feedback!
Becca quickly responded to my call and had complete command of the Kabbage platform. She was able to recall archived agreements and forward them to me in minutes!
Reply from Kabbage
May 02, 2019
Thanks so much for your feedback! We are proud to partner with your business!
A great lender for businesses who appreciate immediate cash flow. No paperwork, just have good credit and an active business bank account. Approved in seconds!
Reply from Kabbage
May 02, 2019
Thanks so much for your review!
Sami was very helpful, professional and knew the answers to my questions, thank you!
Reply from Kabbage
Apr 12, 2019
We appreciate your review!
Sami assisted me with questions regarding my loan. She provided outstanding and prompt service. And she was very pleasant to speak with.
Reply from Kabbage
May 02, 2019
We really appreciate you taking the time to leave us a five-star review!
Awesome overall experience. Josh was great!
Reply from Kabbage
May 02, 2019
Thanks for your great comments! We are glad that you had a great experience!
All representatives I have spoken with have been very courteous, professional, and helpful. My latest experience was with Sami, and she was all of the above and more. I felt that she really cared about my issue.
Reply from Kabbage
Jan 30, 2019
Thanks for the wonderful review!
I had a ongoing issue (requiring a few emails and 4-5 calls) with an eBay link to my account and Jeff T was able to fix it for me in a few minutes.
Reply from Kabbage
May 02, 2019
Thanks for leaving us a review! We appreciate you taking the time to do so!
Coresa was INCREDIBLE! Very nice and patient, and was constantly thinking of ways to solve the problems we kept running into. Thank you Coresa
Reply from Kabbage
May 02, 2019
Thanks for the review, Harrison!
EASY TO USE GREAT PEOPLE SKILLS MADE YOU FEEL GREAT AND CONFIDENT
Reply from Kabbage
May 02, 2019
We really appreciate you taking the time to leave us a review!
Sami was very accommodating and helpful. She explained clearly what mu options were and assisted me along the way. He is a an asset to the company
Reply from Kabbage
May 02, 2019
Thanks for the review!
Had an issue with connecting the bank account and Matthew handled it quickly and professionally. Thank you for the superior service
Reply from Kabbage
May 02, 2019
Thanks so much for your review, Kelly! We really appreciate it!
Jennifer T has been a great help on getting my account set up and adding an authorized user on my account who can also speak on my account.
Reply from Kabbage
May 02, 2019
We appreciate your five-star review!