7.6
Overall Score12 days ago
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.
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.
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.
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User Reviews
Because they help when needed and you need money fast.
Reply from Kabbage
Annie YorkApr 10, 2018
Hi Amanda- Thank you so much for your review! Sincerely, Annie York Customer Success and Experience
Ease of applying and terrific customer support!
Reply from Kabbage
Annie YorkApr 10, 2018
Hi John- Thank you so much for your business! Sincerely, Annie York Customer Success and Experience
Easy to apply, fast response, quick delivery.
Reply from Kabbage
Annie YorkApr 10, 2018
Hi Anita- We really appreciate you! Sincerely, Annie York Customer Success and Experience
Excellent customer service Fast and Easy to use
Reply from Kabbage
Annie YorkApr 03, 2018
Hello! Thank you so much! Sincerely, Annie York Customer Success and Experience
Great service, easy to work with. Deposits are easy and very quick into my account.
Reply from Kabbage
Annie YorkApr 03, 2018
Hi Dana- Thank you so much for your kind words! Sincerely, Annie York Customer Success and Experience
very easy to work with when you need the funds.
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
very easy to use the system and get your funding quickly
Reply from Kabbage
Annie YorkApr 03, 2018
Hello John- Thank you so much for your awesome review! Sincerely, Annie York Customer Success and Experience
Awesome so far. I just wish that, after so many loans and payments, my limit would be raised a bit.
Very fair, and were there when I needed them the most
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
Overall ease of use and access. The platform is simple, the rates are fair per your individual situation
Reply from Kabbage
Annie YorkApr 03, 2018
Hi Bill- Thank you so much! :) Sincerely, Annie York Customer Success and Experience
Kabbage is a great resource for business funding! Simple, Fast, and affordable financing at your fingertips.
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.
Once using Kabbage, loans are fast and funds deposited into my PayPal account
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
Easy application and processes. Great way to expand business credit
Reply from Kabbage
Annie YorkApr 03, 2018
Hello and thank you so much for the wonderful review! Sincerely, Annie York Customer Success and Experience
credit line was not extended high enough for my business, and we were told it would rise, and has not.
I will give a 5 if rates are better, especially after 3rd loan draw to build better relationship
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
Love the ease of working with them. Simple fast and efficient.
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
Great service, great help. Can always count on speaking with a "live" person
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
to open account was easy. account manager is easy to work with. simple to use.
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
Always so willlng to help, and when I called everyone was so informative
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
They do exactly what they say. Provide needed capital quickly!
Reply from Kabbage
Annie YorkMar 12, 2018
Hi Dave, Thank you for your business and trust! Sincerely, Annie York Customer Success and Experience
Easy and fast line of credit, great customer service
Reply from Kabbage
Annie YorkMar 07, 2018
Hello Sunita, Thank you so much. We value you and your business! Sincerely, Annie York Customer Success and Experience
Great customer service, money is deposited into my account immediately.
Reply from Kabbage
Annie YorkMar 07, 2018
Hello Vito, Thank you so much for taking the time to share your thoughts! Sincerely, Annie York Customer Success and Experience
Always been there when I need extra money
Reply from Kabbage
Annie YorkMar 07, 2018
Hello and thank you so much for your review. It means the world to us! Sincerely, Annie York Customer Success and Experience
First let me say, It is easy to get a loan with Kabbage, but that is it. They are legal loan sharks, and when you go to pay them off they give you all kinds of new rules and can't get money from them until they review your account. Then and only then will they consider a loan again for you. Their attitude goes south when they find out you are about to pay them off. Trust me, use someone else you will be glad you did.
Very professional. Easily accessible help.
Reply from Kabbage
Annie YorkFeb 21, 2018
Hi Michael! Thank you so much. We look forward to helping your business moving forward. :) Sincerely, Annie York Customer Success and Experience
Knowledge and service Amy bulls was excellent with all my questions
Reply from Kabbage
Annie YorkFeb 21, 2018
Hello! Thank you so much for your review. We are happy to serve you! :) Sincerely, Annie York Customer Success and Experience
loans decrease after completion they always are less
Reply from Kabbage
Annie YorkFeb 26, 2018
Hi Ed, Thank you for your review and I apologize for any negative experience you may you have felt. Your loan offer does not always decrease after qualification, so I would like to better understand your perspective. I am going to private message you and hopefully come to a resolution/understanding. Thank you and I look forward to speaking with you further. Sincerely, Annie York Customer Success and Experience
Great and Fast Services for Small Business
Reply from Kabbage
Annie YorkFeb 16, 2018
Hello! Thank you so much for taking to time to share your thoughts. We appreciate and value you and your business! Sincerely, Annie York Customer Success and Experience
Our work with Jeremiah was fantastic. He worked very very hard to get us financed, and it was not easy. I loved that we were able to text each other in addition to email. He is a class act, and made our experience with Lendio fantastic.
Reply from Kabbage
Annie YorkFeb 16, 2018
Hi! Thank you so much for your review. We are so happy that our partner, Lendio, referred your business to Kabbage. We very much value our partnership with them and are excited to work with you moving forward. :) Sincerely, Annie York Customer Success and Experience
Extremely Fast, reliable and efficient. Very helpful and quick turn around
Reply from Kabbage
Annie YorkFeb 12, 2018
Hi Richard, Thank you so much for sharing your experience. We look forward to our growing partnership with your business. Sincerely, Annie York Customer Success and Experience
The provide me with what I need - liquidity
Reply from Kabbage
Annie YorkFeb 12, 2018
Hi Larry, This is awesome, thank you so much for sharing your use-case! Sincerely, Annie York Customer Success and Experience
Simple, full disclosure and readily available for questions.
Reply from Kabbage
Annie YorkFeb 12, 2018
Hi Keith, Thank you so much. We try to be as up front as possible, so we are very happy for your experience! Sincerely, Annie York Customer Success and Experience
Need addional working capital to hire an experienced sales person to move thi company to the next level.
Reply from Kabbage
Annie YorkFeb 12, 2018
Hi Ganesh, Thank you for sharing your experience with us. Please let us know if there is anything we can do to help guide you along the way. Sincerely, Annie York Customer Success and Experience
Quick easy process and funding ideal for small business
Reply from Kabbage
Annie YorkFeb 12, 2018
Hello! Thank you so much for your review and business. :) Sincerely, Annie York Customer Success and Experience
Excellent service but term is to short. If term one year would be better.
Reply from Kabbage
Annie YorkFeb 12, 2018
Hello, Thank you so much for taking the time to leave your thoughts. We absolutely hear you and are working to expand our product to meet all SMBs needs. Please let us know if there is anything we can help you with. Sincerely, Annie York Customer Success and Experience
Verified Customer
Fast service. Fairly trustworthy. The customer service is very good also
Reply from Kabbage
Annie YorkFeb 06, 2018
Hi Tarik! Thank you so much for your review. We look forward to continuing to earn your trust. Please let us know if there is anything we can do. Sincerely, Annie York Customer Success and Experience
The experience was very smooth and pleasant.
Reply from Kabbage
Annie YorkJan 26, 2018
Hi Aubrey! Thank you so much for leaving such an awesome review. We look forward to growing our relationship with your business. Sincerely, Annie York Customer Success and Experience
So here is why I will give this company a six star out of 10 rating. If you have changes to your account it takes at least 24 hours for their support team to acknowledge your email and then at least another 7 to 10 business days to make such a small change. For a company that is looking to grow business the support needs to change this is not a customer-focused organization. As far as their website and everything else I would give it a 10 star. The website is easy to navigate it's easy to connect your various sources and the software is pretty cool. I have yet to be approved for a loan even though I have everything and my mother attached to it. I strongly urge people to not only use this organization but to do a little shopping before you select a company for small business loans.
very easy to use and work with. would use them again.
Agent called me proactively and explained setails and how it works. Credit line has been increased in first month.