Kabbage
8.6
Overall Score4 days ago
Kabbage
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
I had some technical problems and I spoke to Cam who took care of all of my issues. Very professional.
Reply from Kabbage
Bethany GrippDec 07, 2018
Thanks for the review!
I was apprehensive before I called. But God sent me an angel named Jared who helped me with grace on December 5...the number that represents grace! Thanks Jared
Reply from Kabbage
Bethany GrippDec 07, 2018
Thanks for the wonderful review! We are delighted to know you had a great experience with Kabbage.
Kabbage has quite literally built my business. Their customer service is outstanding. I have had the pleasure of working with Jared a few times now and he is professional, courteous and always answers my questions thoughtfully. Thank you Jared and thanks Kabbage!
Reply from Kabbage
Bethany GrippDec 07, 2018
Thanks for the wonderful review. We are proud to partner with you and your business!
Jared was very quick and helpful in taking care of me.
Reply from Kabbage
Bethany GrippDec 07, 2018
Thanks for the great review!
I have been trying to link new accounts for almost 2 months and no one was able to help me get that done, until today. Within 5 minutes of being on the phone with Sami D. she was able to figure out what was wrong and helped me manually link the new accounts. She was a pleasure to speak with and my review of Kabbage as a whole has gone back up. You need more people trained and understanding like her!
I have banked with, received credit cards and business lines of credit over the last 20 years with almost all the "major" banks. The Kabbage team and process is by far the simplest, easiest and provides the best customer service I have experienced. When you email your rep, they have always replied the same day. The hold times when you call in, are little to none. Plus the customer representatives know their services, are quick and efficient with whatever I have requested. If you are looking for a quick line of credit to grow your business, trust the Kabbage experience. -HB
Brandon L was very informative and helpful. He addressed my concerns quickly an professionally.
Reply from Kabbage
Bethany GrippDec 04, 2018
Thanks for the review, Chris!
He was very helpful and answered everything I asked. Thank you
Reply from Kabbage
Bethany GrippDec 04, 2018
Thanks for the review!
I have been very pleased with Kabbage as a whole. The funds are dispersed quickly, terms are easy to understand, fees are acceptable, and Customer Service is A++ My most recent contact with Coresa in C.S. went better than expected. She was extremely helpful and willing to take the extra time and go extra mile to handle my concern. Anytime I have called, they are very professional and take their time to assist without any issues. Kabbage has helped when in a jam or just needing the cushion from time to time.
Reply from Kabbage
Bethany GrippDec 04, 2018
Thank you for the wonderful review! We are proud to partner with you and your business! We look forward to continuing to build our relationship.
had a great experience especially with my account manager Josh. anything I needed he was there for me in a blink. Keep it up...
Reply from Kabbage
Bethany GrippDec 03, 2018
Thanks for the great review!
The support staff is very helpful and informative. They have answered all my questions professionally and courteously and have helped resolve questions and issues I've had with my account beyond expectations. Thank you very much!
The support is always great! Yesterday Brandon resolved issues so fast I couldn't believe it! A wonderful company that goes out of their way to help clients!
Reply from Kabbage
Bethany GrippDec 03, 2018
Thanks for the wonderful review. We are thrilled that you had a great experience with Kabbage!
Thanks to SAMI for taking the time explaining payments online. Kabbage helps entrepreneurs juggle many tasks with ease.
Reply from Kabbage
Bethany GrippDec 03, 2018
Thanks for the great review! We are proud to partner with you and your company!
Top notch experience! Very knowledgeable customer service rep who got all my questions answered in a timely fashion!
Reply from Kabbage
Bethany GrippDec 03, 2018
Thanks for the wonderful review!
Emily S. hace me an extraordinary customer service. She respond quick with the rights answers of my requests.
Reply from Kabbage
Bethany GrippDec 03, 2018
Thanks for the review. We are delighted to know you had a great experience with Kabbage!
Matthew provided five star service! I was very pleased at how he handled my call. Very happy customer here.
Reply from Kabbage
Bethany GrippDec 03, 2018
Thanks for the great review!
They are always quick, courteous and helpful on the phone! I love how I can take a loan and get it to my bank in seconds.
Reply from Kabbage
Bethany GrippNov 30, 2018
Thanks for the review! We are thrilled to know you had a great experience with Kabbage!
Great service and experience and getting our payoff letter was a breeze. Thank you.
Reply from Kabbage
Bethany GrippNov 30, 2018
Thanks for the review, Cory!
Sami was very helpful, knowledgeable, and patient with helping me to get my profile updated correctly.
Reply from Kabbage
Bethany GrippNov 30, 2018
Thanks for the review!
When you need cash flow fast Kabbage is on it! Plus, if you have any questions or needs their staff is extremely helpful like the representative I had (PATTY), she was extremely helpful and made sure that I was completely satisfied with regards to my questions and concerns..
Reply from Kabbage
Bethany GrippNov 30, 2018
Thanks for the wonderful review! We are proud to partner with you and your business!
So easy to work with outstanding customer service they will guide you through the process and Becca is amazing
Reply from Kabbage
Bethany GrippNov 30, 2018
Thanks for the review!
I usually don't have time to leave a review but after the conversation that I just had my mother told me it's only right. Thank you Morgan for staying on the phone with me for what seemed like forever! I know I probably asked you an unusual amount of questions but thank you for not giving up on me!
Reply from Kabbage
Bethany GrippNov 30, 2018
Thanks for the wonderful review! We are delighted to know you had a great experience with Kabbage!
Just made my first payment and was curious about how my payment/line of credit was linked to my Kabbage card. The process was fully explained by a very friendly and knowledgeable customer service rep.
Reply from Kabbage
Bethany GrippNov 30, 2018
Thanks for the review!
Ms. Zalenka H was so helpful with my questions about my account. She made what I needed done so easy and understandable.
Reply from Kabbage
Bethany GrippNov 30, 2018
Thanks for the review, Ramona! We are delighted to know you had a great experience with Kabbage!
Brandon was great and provided excellent customer service! I will make sure to refer Kabbage to my partners.
Reply from Kabbage
Bethany GrippNov 30, 2018
Thanks for the wonderful review! We are proud to partner with you!
Hi, All went well with the phone call and customer service was excellent. Thank you
Reply from Kabbage
Bethany GrippNov 28, 2018
Thanks for the review!
Zelenka is awesome!She was able to assist me with a request quickly. My experience with Kabbage and their helpful team has been great.
Reply from Kabbage
Bethany GrippDec 06, 2018
Thanks for the review, Carl!
Josh was extremely helpful, courteous and kind. He helped enormously and was able to help with the issue I had.
Reply from Kabbage
Bethany GrippNov 28, 2018
Thanks for the great review, Lea Ann!
This is my first business line of credit after 25+ years of ownership. Thank you for making this such an easy process! I called with a question and Patty answer in such a pleasant manner, I won't mind calling back. She was professional and eased my nerves tremendously!!
Reply from Kabbage
Bethany GrippNov 28, 2018
Thanks for the great review! We are proud to partner with you and your business!
As a business owner, I receive multiple phone calls daily from companies wanting to lend me money. Kabbage is the best option, offering seamless service and the least expensive company in regards to fees. My experience with Patty today was wonderful, she handled my request quickly and in a nice friendly manner.
Reply from Kabbage
Bethany GrippNov 28, 2018
Thanks for the wonderful review! We are delighted to hear you had a great experience with Kabbage!
I just spoke With Zelenka H VERY helpful . Thank You
Reply from Kabbage
Bethany GrippNov 28, 2018
Thanks for the review, Michael!
Josh was very helpful and understanding. He explained the payment system in easy to understand terms.
Reply from Kabbage
Bethany GrippNov 28, 2018
Thanks for the review. We are happy to know you had a great experience with Kabbage!
Zelinka H was excellent handling my account issues today. Prompt and curtious. Great Representative Dennis Sanders
Reply from Kabbage
Bethany GrippDec 06, 2018
Thanks for the review, Dennis!
Jimena was very pleasant and helpful with my call this morning! I was very pleased with her customer service and I look forward to working with the company in the near future. Thank you , Amy Marlin
Reply from Kabbage
Bethany GrippNov 28, 2018
Thanks for the review. We are proud to partner with you and your business, Amy!
Jared was very personable and was able to assist me with a request quickly and knowledgeably. It makes working with Kabbage enjoyable when the Agents are well spoken and helpful.
Reply from Kabbage
Bethany GrippNov 28, 2018
Thanks for the wonderful review! We are delighted you had a great experience with Kabbage!
I want to say that Morgan J-W truly loves her job! She was very professional and her overall attitude made for a very pleasant experience. I wish I dealt with people like her on an every day basis! Thanks Morgan !
Reply from Kabbage
Bethany GrippNov 28, 2018
Thanks for the great review! We are delighted that you had a great experience with Kabbage!
great service - easy process. every encounter I've had with CS has been with a professional and knowledgeable person.
Reply from Kabbage
Bethany GrippNov 28, 2018
Thanks for the review!
When I originally went to Kabbage , I was apprehensive! Although that fear quickly went away upon the ease of applying and review of options, etc. Kabbage has not let me down. In fact today I had to reach out to Kabbage via customer service (live voice) . "Zelinka" handled my questions and made appropriate adjustments to my account without a hiccup. As well, she has a charming personality and it made the call totally worthwhile! So folks she is someone that I recommend for others to personally request her because she gives 100%. Thank you! Zelinka
Reply from Kabbage
Bethany GrippNov 27, 2018
Hi Faith, thanks for the wonderful review! We are proud to partner with you and your business!
Great people, great service for small businesses.
Reply from Kabbage
Bethany GrippNov 27, 2018
Thanks for the review!
Customer service was great with Josh. I didn't realize due date was here, he quickly handled request. Advised me of options and I was relieved.
Reply from Kabbage
Bethany GrippNov 27, 2018
Thanks for the review, Tracy! Happy to hear that you had a great experience with Kabbage.