8.5
Overall Score2 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
Sami is AMAZING. She is personable, smart, and an EXCELLENT fit for Kabbage. I was blessed to talk to her!
Reply from Kabbage
Mar 23, 2019
Thanks for your review! We appreciate it!
Thank yo Josh for helping me juggle the payment this month. Your help, great attitude, and expertise is greatly appreciated.
Reply from Kabbage
Mar 23, 2019
Thank you for your review, Karen!
Alexis O was very helpful. Issues with connecting to the bank. she walked through all issues, was always available by email or phone, and got it done! Excellent to work with!
Reply from Kabbage
Mar 23, 2019
We appreciate you taking the time to leave a review!
Excellent representative. She took the time and effort to explain everything to us. We really appreciate this kind of customer service.
Reply from Kabbage
Mar 23, 2019
Thanks for the review, Carlos!
Jared L was very helpful with helping me understand my account questions to prevent any future arising questions pretaining to my account. He was very informative and patient
Reply from Kabbage
Mar 23, 2019
Thank you so much for your review!
The process of changing some important information on our account was made into a smooth transaction. Sami D assisted in completing the transaction as well as went above and beyond to explore other options that we found useful in the changing of our information. She gave us excellent customer service today. We thank you again.
Reply from Kabbage
Mar 23, 2019
We appreciate your great review!
Josh S was very helpful in resolving are billing question. He went over all the options that were available to us.
Reply from Kabbage
Mar 23, 2019
Thanks for leaving a review!
I have called more than once, but my most recent experience with Jared was an excellent experience. All of the team members have been helpful, but Jared went above and beyond to work with me and then to follow up to ensure his promise was delivered, my satisfaction was complete and to offer further support. Thank you Jared!
Reply from Kabbage
Mar 20, 2019
Thanks for your review! Your feedback is really appreciated!
I needed a zero balance statement. Jared at customer service had it to me in minutes. Very helpful guy
Reply from Kabbage
Mar 20, 2019
Thanks for your review! We appreciate it!
I had a problem and Josh did every thing he could to help!!
Reply from Kabbage
Mar 15, 2019
We appreciate you taking the time to leave us a review!
Brandon was extremely helpful and resolved my request very quickly.
Reply from Kabbage
Mar 15, 2019
Thanks so much for your review!
The experience was smooth and it was easy
Reply from Kabbage
Mar 15, 2019
Thanks for the review!
Easy and upfront terms make it easy to make a decision.
Reply from Kabbage
Mar 14, 2019
Thanks for your review! We appreciate it!
It is always a pleasure to call in to Kabbage! If only banks were so nice...I can't wait until online lenders like Kabbage replace storefront banks.
Reply from Kabbage
Mar 14, 2019
Thanks for leaving this great review, Alexis!
I was working with Matthew T to get my email address changed. It took a minimum amount of time and he was very courteous.
Reply from Kabbage
Mar 14, 2019
Thank you for leaving a review!
Working with Kjre today was wonderful; she resolved the situation in an hour that i had been asking about for over a week. She also followed up with a phone call and an email to let me know the outcome. Great customer service! No one else that I called and talked too in regards to this did any of that.
Reply from Kabbage
Mar 14, 2019
We are glad that everything was resolved!
Had problem with my bank account not connected because bank login had changed. Talked to Cam and she walked me through changing it and had tech support get it fixed within minutes.
Reply from Kabbage
Mar 14, 2019
Glad that we were able to resolve that! Thanks for leaving a review!
Emma B was fantastic, patient and extremely professional in providing me help with my account.
Reply from Kabbage
Mar 13, 2019
Thanks for taking the time to leave a review! We appreciate it!
Mr. L is very excellent. Very professional and knowing how to handle all the complicate situation like my case. Thanks so much for all your help.
Reply from Kabbage
Mar 13, 2019
Thank you for your review!
I ran into a issue & Matthew was so helpful. He was so great!!
Reply from Kabbage
Mar 13, 2019
We are glad that your issue was resolved! Thanks for leaving us a review!
My rep, Jakyi went above and beyond getting my issue fixed with my Kabbage Debit card! Thank you for taking the time and the extra steps to solve it!
Reply from Kabbage
Mar 13, 2019
Thanks for sharing your review! We appreciate it!
Excellent customer service, they are there when you need it.
Reply from Kabbage
Mar 13, 2019
We really appreciate you taking the time to leave a review!
Kabbage, has helped me several times with cash flow to further my company. They have been great to work with.
Reply from Kabbage
Mar 13, 2019
Thank you for your review!
Caty was very helpful in explaining the proper way to make smaller payments towards the monthly payment due. I really appreciated the help and the assistance for this months payment.
Reply from Kabbage
Mar 12, 2019
Thanks for your great review!
The service I received today was excellent. Christian was extremely professional, timely and accommodating in addressing my request.
Reply from Kabbage
Mar 12, 2019
We appreciate you taking the time to leave a review!
I had a horrific two week debacle of an experience, trying to ask basic questions without getting clear answers and then being approved but not having access to funds with no clear explanations why, being told to turn in papers that I had already submitted, being told I would get an update call without receiving one... and more. When assigned to an account rep (Sonny), I was not only given all of the above, but was also treated with smug condescension and lack of professionalism when asking basic common sense questions. If I had to base my opinion of Kabbage on this experience alone, I would be reporting them to the BBB for questionable practices, as I was led to believe that my financial information was not received, secure or understood and was getting requests for more. However, I lucked into Caitlyn on one of my many many attempts to communicate and she was astounding. She was friendly, polite, efficient and reassuring. She understood my very basic questions, answered them with ease and personally researched anything that didn't add up. Her skill at handling the situation was perfect and was ultimately what led me to becoming a customer.
Reply from Kabbage
Mar 12, 2019
Thanks for taking the time to leave us a detailed review, and we are glad that your business is using Kabbage. We want to apologize for your poor initial, but we are truly glad that everything was able to be resolved. I will be sending you a private message as well.
Called customer service and Josh S helped. Josh was extremely thorough in all of the answers he gave and also provided additional information which was most helpful.
Reply from Kabbage
Nov 12, 2018
Thanks, Yvon, for the great review!
It was a great experience speaking to you and you helping resolve my issues. Thanks
Reply from Kabbage
Mar 11, 2019
Thanks for your review!
Customer Service is great. I had to move my payment out a couple of days and Matthew in customer service took care of it w/ no problem and he explain in detail what was taken place and let me choose the best option for my Firm. Great work Matthew!!
Reply from Kabbage
Mar 11, 2019
We are glad that you had such a great experience! We appreciate your review!
I just got great customer support from Caty B. Very professional, prompt and kind.
Reply from Kabbage
Mar 11, 2019
Thanks for your review! We appreciate it!
The representative was very helpful in helping me re-schedule a payment
Reply from Kabbage
Mar 11, 2019
Thanks for taking the time to leave a review!
Thanks to my customer service rep name zelenka I was able to get a lot accomplished with my account she was very helpful and courteous it was almost as if we have known each other for years she really is a asset to this company .
Reply from Kabbage
Mar 08, 2019
Thanks for your awesome review! We appreciate it!
Patty was very helpful and understanding of our situation. She was professional, knowledgeable, and solved our immediate problems. Thanks
Reply from Kabbage
Mar 08, 2019
Thanks for taking the time to leave a review, Catherine!
I called three times to resolve an issue. Caitlyn was the fourth and handled it efficiently.
Reply from Kabbage
Mar 08, 2019
We are glad that your issue was resolved! We apologize for any inconveniences.
Jeff was fabulous and took care of my questions and got my account current immediately. He was very professional and helpful and he is an excellent customer service representative. Betty Anderson
Reply from Kabbage
Sep 04, 2018
Hi Betty- Thank you so much! :)
Kabbage is teaching me how to mange my business and become more updated in, accounting, Management. When I call there is always someone truly happy to help. Zelenka was the last Customer Service agent I spoke to, she was amazing and supportive with my questions and directions. A real Cheer Leader for my business' growth.
Reply from Kabbage
Mar 13, 2019
Thanks so much for your great review!
Very convenient service! Customer service is timely and accurate.
Reply from Kabbage
Mar 08, 2019
Thanks for your review!
I called seeking past statements my account that were not available online, and Cam went above and beyond to help me out, sending an email with all of the requested materials minutes after we had gotten off the phone. Thank you!
Reply from Kabbage
Mar 08, 2019
We appreciate this review, Nick!
Needed help changing primary account and Sami took care of it for me. Very friendly. Easy to reach on the phone.
Reply from Kabbage
Mar 08, 2019
Thanks for leaving this great review! We appreciate it!
service has been great on the phone. just wish I would have gotten funds faster. Matthew was excellent on the phone and his follow-through was expedient.
Reply from Kabbage
Mar 08, 2019
Thanks for leaving your feedback! We are glad that you had a great customer service experience!
Sami was outstanding and very helpful. You can tell that her intent from the beginning was to make sure that I was satisfied, and for that I'm very grateful.
Reply from Kabbage
Mar 05, 2019
Thank you for taking the time to leave a review, Patrick!
Ms.Sami was very helpful.She was very courteous and professional.She was able to resolve my request in 5-10 while remaining on the line.Thanks again.
Reply from Kabbage
Mar 04, 2019
Thank you for taking the time to leave a review!
Was very helpful and assisted me with paying back a loan with no problems. I am extremely satisfied with how this program works to help with small businesses and their ever changing needs.
Reply from Kabbage
Mar 04, 2019
Tom, thanks for your awesome review!
Kabbage has been a valued partner of mine for several years now. I had a problem with my account and every person, every step of the way listened to my challenge and worked to my benefit to correct the issue. This really made me feel like they saw me as a real person and a real small business owner, not just a number or the signature on the black and white pages of an inflexible contract. I'd like to give special recognition to Jennifer T, Amy B, and Caroline for really treating me with kindness, compassion, understanding, and respect during our interactions. This sealed the deal that I will be a Kabbage partner for years to come and gladly share the great experience I've had with other small business owners.
Reply from Kabbage
Mar 04, 2019
Brien, thanks so much for your review. We are proud to partner with your business, and we are glad that we were able to resolve the issue on the account. We truly look forward to continuing our partnership!
The application process with Kabbage was simple and approval was quick. When I had questions I spoke with Sami, she was extremely knowledgeable and helpful.
Reply from Kabbage
Mar 04, 2019
Thanks for your review, Teresa!
Mathew was perfect in every way. He answered our questions, and took the time to make sure we understand the ways we can access our available funds.
Reply from Kabbage
Mar 04, 2019
Thanks so much! We appreciate your review!
Jared was very helpful and courteous. Seems like he really likes his job.
Reply from Kabbage
Mar 04, 2019
Thanks for taking the time to leave us a review!
Great answers to all my questions! Very polite and friendly! Zelenka was outstanding!
Reply from Kabbage
Mar 13, 2019
Thanks for leaving a review!
The representatives take the time to explain in details all that you need to know and to answer your questions.
Reply from Kabbage
Mar 04, 2019
Thank you for your review!
I just got off the phone with a one Caty B. and she was phenomenal to work with!!! Once I relayed my issue/problem requesting a new repayment schedule, she was all over it with help, kindness, and understanding. She was really GREAT to work with!!! DAN
Reply from Kabbage
Mar 04, 2019
Thank you so much for leaving such a great review!