Kabbage
check_circle VerifiedKabbage 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
- 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.
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. 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. 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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User Reviews
Star Rating
922 Reviews
Review Breakdown
Sentiment Criteria
Vika Golovanova
Marcus provided excellent service and quickly came up with the solution that worked well for us. Thank you!
Amaris N Wendelburg
I had no idea your staff would be so helpful. Jared L. quickly understood what I needed and sent me an email with my requested information. I am so thankful for this level of customer service!
Lufthansia Lomax
I called to today to discuss matters regarding my account and was fortunate to get Zelenka. A fabulous CSR that really went above and beyond to get my account squared away and she also brightened up a horrible day I was having. I really appreciate her thoughtfulness and her sincerity. I would hire her for my firm in a heartbeat. Kabbage, you have a diamond.
Brian James
Kabbage has shown that they are there for you in the good times and the bad. Despite what they are also dealing with the Rep I spoke to Jules was kind and understanding. Thank you Jules and Kabbage
Izakaya Yoki
It was great! Jared L provided above and beyond customer service during the toughest time as a restaurant owner. His assistance truly made my day. Thank you so much! @yoki
Reply from Kabbage
Mar 24, 2020
Thanks so much for your review!
Shirish D.
I had an issue with extension of payment. I discussed this matter with Customer Support Representative (Matt R.). Matt went above and beyond to assist and resolve the issue. He was very helpful, courteous and understanding. I applaud Kabbage for outstanding customer support.
Reply from Kabbage
Mar 24, 2020
We appreciate your honest feedback!
Melody Seanoa
Today I spoke to Marcus C. and he kindly answered ALL my questions that I had about my account and payments. He took his time to explain everything clearly, which I truly appreciated!
Reply from Kabbage
Mar 24, 2020
We appreciate it! Thanks for choosing Kabbage as the funding partner for your small business!
nmini
Jules P. Has been extremely helpful during these trying times and I’m so thankful for her support and understanding. It’s people like her that make me feel like I can grow with Kabbage!
Reply from Kabbage
Mar 24, 2020
Thank you for your review!
Carla Albarran
Really good company loan. Not too high interest rates.
Reply from Kabbage
Mar 24, 2020
We appreciate this feedback! Thank you!
Daryl Goodwin
Ryan W. was very professional and helpful.
Reply from Kabbage
Mar 24, 2020
We appreciate your review! Thanks Daryl!
Chris D.
Ryan W. did a great job and was very helpful in assisting me. Very sharp, friendly and followed up as promised on my matter.
Reply from Kabbage
Mar 24, 2020
We appreciate this review!
Marcus V
Along with the phenomenal service and support provided by Amber H and the entire Kabbage Team, I feel this is a partnership that continues to grow due to the relentless efforts of your Team. On behalf of myself and the small business I am proud to share with the community, thank you.
Reply from Kabbage
Mar 24, 2020
Thanks for your feedback!
Matthew Floeter
Morgan in customer service was responsive and provided excellent customer service. I was appreciative to speak with an actual person .
Reply from Kabbage
Mar 24, 2020
Thanks so much!
JILL WEINBERG
Spoke to Jared today, he was incredibly helpful and professional. Excellent customer service !!!!
Reply from Kabbage
Mar 24, 2020
We appreciate this great review!
RJ
I just want to thank you all for being so helpful at this time of need and a special thanks to Jared L. for being so polite and helpful and knowledgeable.
Reply from Kabbage
Mar 24, 2020
Thank you for sharing your review with us!
otis weaver
Rebekah was amazing and very pleasant to talk with. Rebekah met all my questions and needs.
Reply from Kabbage
Mar 24, 2020
We appreciate you taking the time to leave us a review!
Luke R Wenneberg
Jules in customer service was very helpful and polite. Very knowledgeable, clear, and concise.
Reply from Kabbage
Mar 24, 2020
Thank you for your review!
Treason Gallery
Jules was very helpful while we navigate the COVID-19 fiasco. Thanks for the support!
Reply from Kabbage
Mar 24, 2020
Thank you so much for this positive feedback!
Thom Lobe
Stephanie W in Customer service was extremely helpful and understanding today in this difficult time dealing with life and finances in the age of COVID-19 Your whole team was a great help. First class all the way.
Reply from Kabbage
Mar 24, 2020
We appreciate this awesome review!
Sue Bolf
Ryan was very helpful with my call in explaining how I could make a partial payment and then defer the rest of my payment. Great experience
Reply from Kabbage
Mar 24, 2020
Thanks so much for your review!
KK
Jules was incredibly kind and sensitive with today. I’m about to lose my business and she was great at making me feel at ease. Jules provided answer for me and I am very happy. Great service.
Reply from Kabbage
Mar 24, 2020
We appreciate your small business choosing Kabbage as your funding partner!
Bill Crawford
Greetings, Thank you so much for your consideration and help. Kate was so professional and a I appreciate her efforts to provide temporary relief during the coronavirus. Sincerely, Bill Crawford
Reply from Kabbage
Mar 24, 2020
We appreciate your review! Thanks Bill!
CR2021
Kabbage has been a great help to our company's success Jules P with Kabbage! Amazing. She got me through the approval process with payment, Thank Jules
Reply from Kabbage
Mar 24, 2020
We really appreciate this great review!
Julie Lilienfeld
Zelenka was so helpful and hilarious. Thank you !
Reply from Kabbage
Mar 24, 2020
Thanks for your review!
Vajani Telo
Rebekah was extremely helpful and solved our issue during this hard time for businesses with COVID-19 in the utmost professionalism!
Reply from Kabbage
Mar 16, 2020
Thanks for your review!
Front2Back Studio
After doing business with Kabbage for 3 years, I can honestly say they've improved a lot! Today I called and the rep was very helpful, taking time to answer my questions.
Reply from Kabbage
Mar 16, 2020
We appreciate your honest feedback!
Mark Miles
Great customer service, made changing due date extremely easy..
Reply from Kabbage
Mar 16, 2020
Thanks for this feedback!
William
Will recommend jules and kabbage to friends looking for help. Nice job Jules. Thank you for your guidance
Reply from Kabbage
Mar 16, 2020
We appreciate your review! Thanks so much!
kitty
It has a Low minimum requirements, Monthly payments and Full prepayment benefits.
Once again, prompt, courteous, and useful information provided by Ryan W. Thank you!!
Reply from Kabbage
Mar 10, 2020
Thanks for the review!
Steven Stanimirovic
Kabbage has been a great help to our company's success and their customer service is A+. Rebekah M. especially helped me solve a crucial issue with our account and we are grateful that Kabbage has representatives like her that go above and beyond to resolve any issues we may be experiencing.
Reply from Kabbage
Mar 10, 2020
We appreciate your review! Thank you for choosing Kabbage!
Rihard Adams
Marcus with Kabbage! Was amazing. He got me through the approval process with ease. He answered all of my questions and was very knowledgeable. When you are about to spend large sums of money on products, speaking with someone like Marcus can really ease the anxiety. Thanks Kabbage, Thanks Marcus, Richard
Reply from Kabbage
Mar 10, 2020
Thanks for this awesome review, Richard!
Sara LeHoullier
I called in to change my email address and Amber H. was wonderful, friendly and responsive. We got it done quickly and efficiently and I feel like I was very well taken care of.
Reply from Kabbage
Mar 10, 2020
Thanks so much for this review!
Sam Given
Jules was really helpful today, great service. I had a smooth and efficient experience because of Jules! Will recommend.
Reply from Kabbage
Mar 10, 2020
Thanks for choosing Kabbage as your funding partner!
Stacie
Just hung up the phone with Jules and I am impressed. I typically never leave reviews but I had a great experience with someone knowledgeable and I’m relieved and happy to do business with kabbage. Regular banks all smoke and mirrors but kabbage is different. It’s more personal and friendly while professional too! Jules was great projecting this. My business and I thank you Jules.
Reply from Kabbage
Mar 10, 2020
We appreciate it! Thanks for this great feedback!
Rose
Jules saved my life today! Thank you, Jules for your insight and information with Kabbage. I was able to troubleshoot my information with her, giving my small business an edge.
Reply from Kabbage
Mar 10, 2020
We appreciate your review!
Julia Rhue
I had a very urgent situation in trying to buy a home and Marcus, his supervisor Sham, Rebekah, Chelsea, Robin, and countless others dealt with my repeated calls. They were professional and truly understood my dilemma. They were able to help me and I truly appreciate it beyond words. I know it was a team effort. Thank you! Julia
Reply from Kabbage
Mar 10, 2020
Thanks so much for your great feedback!
Maria Antoniello
Honestly never had a company that was so easy to work with and everyone being so helpful. I love Kabbage. Their customer service is #1. Any questions asked they always have a quick answer for you. I am so happy with them and I Highly recommend this company.
Reply from Kabbage
Mar 10, 2020
We really appreciate this awesome feedback! Thanks!
Than Ruyle
Customer service (Rebekah M.) was very helpful
Reply from Kabbage
Mar 10, 2020
Thank you for leaving a review!
Peter R.
We love Kabbage! great solutions for our business we don't have to take all the money at one time. thanks to jules we understand and we had a good experience with her. jules gave good information and solution! jules thank you
Reply from Kabbage
Mar 10, 2020
Thank you for leaving us a five-star review! We appreciate it!
JMPhoto
Liz m. Was wonderful and responded quickly to my inquiry with information I found helpful.
Reply from Kabbage
Mar 10, 2020
Thanks so much for leaving a review!
Joyce K.
Jules was extremely kind and professional with me. Customer service at Kabbage is top notch and jules gets all the kudos. Thank you Jules and continued blessings you!!!
Reply from Kabbage
Mar 10, 2020
We appreciate this great review!
James Carlson
Liz was very helpful and answered all of my questions. Thank you Liz!
Reply from Kabbage
Mar 10, 2020
We appreciate your review!
Ferron Hartshorn
I had a Great experience with Liz. Very friendly and professional, not to mention helpful. So far my experience has been great.
Reply from Kabbage
Mar 10, 2020
Thanks for your review!
RQL Transporters
He was great and very helpful and they were able to fund me when others did not.
Reply from Kabbage
Mar 10, 2020
Thanks for your review!
AJ Williams
Gus is a true professional. He is very knowledgeable of the Kabbage company and its services. Thank you so much for helping me out!
Reply from Kabbage
Mar 10, 2020
We appreciate this five-star review!
Dongjoo
Service is great and prompt. In the past ten years it was always great. Friendly account managers. Convo's make it sound like they're on our side. But because of interest rate being so high and principal amounts being paid off in such short amount of time it gets stressful to pay off. I would recommend to other businesses if it is absolutely the only option they have.
Reply from Kabbage
Mar 10, 2020
Thank you for taking the time to leave us a great review!
Tom Attea
Friendly, expert help. Solved the problem resourcefully and promptly.
Reply from Kabbage
Mar 10, 2020
Thanks for the review!
Jon DOE
0 STARS!!! WORST OF THE WORST. They are not even a legit lender. You can find way better products elsewhere. They reserve the right to jerk your credit anytime they want, meaning lowering your credit score each time, and they do that without your consent. Stay away from them if you want to avoid headaches and messing up your credit. AWFUL CROOKED COMPANY!!!
Reply from Kabbage
Mar 16, 2020
We want to apologize for your poor experience. Your line is determined by our automated system that has hundreds of variables, which means that you line can increase or decrease when you are re-evaluated. If you have any further questions, then give us a call at 888-986-8263.
Johnathan Flores
KABBAGE SUCKS AND NEVER GETS BACK TO YOU! I SENT NUMEROUS TAX INFO JUST TO GET LEFT IN LIMBO! GOING THROUGH ANOTHER LENDER THAT'S NOT SUCH A HASSLE! I SENT ALL MY BANKING INFO ALONG WITH OTHER PROOF AND THEY STILL REQUIRE MORE! DONE WITH KABBAGE!