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 annual 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.   

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
  • 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

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 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. 

Check rates with Kabbage

The Bad

  • Short-Term Solutions
  • Low Amounts of Capital
  • Personal Guarantee

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. Man

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. 

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. 

Disclaimer

As part of our service, we attempt to partner with all the companies that we review, and may get compensated when you click or call them from our site; however, regardless of any current, past, or future financial arrangements, companies listed on Best Company cannot buy their position, nor do we manipulate or inflate a company's ranking for financial gain. A company’s ranking is based on and calculated by an objective set of ranking criteria, as well as user reviews. See our How We Rank page for more information regarding our ranking algorithm.

All user reviews posted on Best Company are subject to screening and approval. We reserve the right to approve or deny any review posted to this site in accordance with our Review Guidelines. Best Company never suppresses user reviews—unless they are being investigated for authenticity, or if they violate our review guidelines. We encourage anyone who suspects a user review to be fraudulent or intentionally inaccurate to please notify our review moderation team.


User Reviews

Star Rating

4.8
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742 Reviews

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4 star
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Richard Miami
February 12th, 2018 North Miami Beach, FL DETAILS
Value for your money
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Extremely Fast, reliable and efficient. Very helpful and quick turn around

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Reply from Kabbage

Feb 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

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larry
February 12th, 2018 Tucson, AZ DETAILS
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The provide me with what I need - liquidity

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Reply from Kabbage

Feb 12, 2018

Hi Larry, This is awesome, thank you so much for sharing your use-case! Sincerely, Annie York Customer Success and Experience

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Keith Lewis
February 12th, 2018 Effingham, IL DETAILS
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Simple, full disclosure and readily available for questions.

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Reply from Kabbage

Feb 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

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Ganesh Persaud
February 12th, 2018 Atlanta, GA DETAILS
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Need addional working capital to hire an experienced sales person to move thi company to the next level.

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Reply from Kabbage

Feb 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

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Lionheart Tax and Accounting LLC
February 12th, 2018 Fishers, IN DETAILS
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Quick easy process and funding ideal for small business

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Reply from Kabbage

Feb 12, 2018

Hello! Thank you so much for your review and business. :) Sincerely, Annie York Customer Success and Experience

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One Year Term
February 12th, 2018 Miami, FL DETAILS
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Excellent service but term is to short. If term one year would be better.

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Reply from Kabbage

Feb 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

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Tarik
February 5th, 2018 Newark, NJ DETAILS
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Fast service. Fairly trustworthy. The customer service is very good also

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Reply from Kabbage

Feb 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

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Aubrey D Rahming
January 26th, 2018 Miami, FL DETAILS
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The experience was very smooth and pleasant.

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Reply from Kabbage

Jan 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

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Bradley Trede
September 14th, 2017

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.

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Reply from Kabbage

Oct 16, 2018

Hi Bradley- Thank you so much for your feedback. We can only get better with your feedback and we will be taking your experience and using it review current policies. You truly are valued. Never hesitate to share your thoughts moving forward. Thank you!

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Peggy
January 16th, 2017 Reno, NV

Very easy process and straight forward re-payment policy. I've been very happy with the service.

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Reply from Kabbage

Jan 02, 2019

Thanks for the review!

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Pamela A. Parris
January 16th, 2017 Virginia Beach, VA

Excellent business loan provider when needed! Simple and easy and it took less than 48 hours to have funds deposited. I highly recommend Kabbage for every business when a quick loan is needed. We will use Kabbage again in the future, if necessary.

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Reply from Kabbage

Jan 02, 2019

Thanks for the wonderful review! We are proud to partner with you and your business!

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Carmen
January 16th, 2017 Ridgeland, MS

The process was very simple and the funds deposited into my account earlier than quoted. Payment schedule and interest rate is MUCH lower than my previous loan company. Highly recommend this company and will use Kabbage again!!

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Reply from Kabbage

Oct 16, 2018

Awesome! We are so happy to partner with you!

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Stephen
January 16th, 2017 Tuscaloosa, AL

Agent called me proactively and explained setails and how it works. Credit line has been increased in first month.

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Reply from Kabbage

Oct 16, 2018

Hi Stephen- This is wonderful!

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Cathy
January 16th, 2017 Alpena, MI

very easy to use and work with. would use them again.

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Reply from Kabbage

Oct 16, 2018

Thank you Cathy!

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Donna Penland
December 2nd, 2016

Quick and Easy! The site is also user friendly.

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Reply from Kabbage

Oct 17, 2018

Thank you Donna!

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EveryBuddyVapes
December 2nd, 2016 West Chester, OH

It is an easy process. and the funds are available almost immediately. I am looking forward to a lower rate as I continue to establish my business with Kabbage.

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Reply from Kabbage

Oct 17, 2018

Thank you so much!

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Danny Moore
December 2nd, 2016 Montgomery, TX

As another poster mentioned, Kabbage is awesome for quick cash flow resolutions. That was my purpose for applying to them as well. The service was excellent and the speedy processing and ease of qualifying was superb. My only issue, and it's a very small one, is the 6 month repayment requirement. I didn't see a 12 month option when I submitted my request but I do see that this is something that they offer. Then again, the purpose of this line of credit isn't to fund my larger expenses so, as I mentioned, that was a very small issue. I think Kabbage is an awesome company and a great resource to have for any small business. I look forward to a long relationship with these guys. PS: Definitely the fastest, easiest way that I've seen to get instant capital for your business as long as you meet their prerequisites.

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James Morris
December 2nd, 2016 Dallas, GA

Easy, fast approval. Good terms, easy online tools.

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Steph G.
December 1st, 2016

The process was easy. Customer service was great when it came to requesting and reviewing the additional info needed for approval

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T Jonathon Turner
December 1st, 2016 West Palm Beach, FL

There service and support team is the best. They have walked me through everything and I thank them. Because of them I am able to expand my business and am looking to apply for an additional 30k loan TJT- President ,Castleberry Holdings, Inc.

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TM
December 1st, 2016

Simple process, fast response, perfect solution for small business in need of cash flow assistance from time to time. Great communication. Highly recommend.

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Gary Callahan
August 8th, 2016 Orange, CA

Very simple process. Easy to manage.

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Jay jasper
August 8th, 2016 Phoenix, AZ

I am concerned that this product, with its continued pricing structure becomes a continuous circle of borrowing. Maybe as I continue as a customer, the pricing becomes more favorable. We will see. As far as ease of use, this is a good product. I will continue for now.

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Peter Ansara
August 2nd, 2016 Manheim, PA

Prompt service and they DO what they say they will do.That's Refreshing.Perfect solution for any business that has Bunched cash flow issues, like mine. Highly recommend them..45 yrs in Business and will never use a Bank agian for cash flow issues.

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Russell
August 2nd, 2016 Milford, CT

Kabbage was not able to provide me with what i required at first. then 1 month later they helped me out a bit. i play on developing a great relationship with Kabbage and using their service a lot for my business. RF

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Steve Stai
May 20th, 2016 Saint Michael, MN

Very helpful in step by step process applying for loan. Great communication in emails and phone

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Mike Oliphant
May 11th, 2016 Santa Cruz, CA

It was fast. Thank you again for doing it faster and better then the banks

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Raj Ranjan
May 6th, 2016

I could not believe that a loan can be availed so seamlessly. It is incredibly simple and instantaneous. Love to do business with these guys.

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Paul Wolotsky
May 6th, 2016 Laguna Niguel, CA

Great service!

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Tony Lancaster
May 6th, 2016 Pasadena, CA

Overall my experience with Kabbage has been great. David my Account Manager has been available and very helpful along the way.

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Tom Jacobs
May 6th, 2016 Peculiar, MO

My contact person was THEE best ever. Went out of his way (even after hours) to help. Jeremy Williams Investment Associate Kabbage Inc. 678-713-7432 [email protected]

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Philip Setterquist
May 6th, 2016 Cape Coral, FL

So far we have no complaints!

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Christopher A Loader
May 6th, 2016 Erie, PA

The process was easy and the rep;s were very helpful.

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Helen Gurno
May 6th, 2016 Oak Harbor, WA

Even though the line of credit loan was processed on line with no human interaction, Kabbage made this process very simple. It was simple and a pleasure. Thank You.

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Jim
May 6th, 2016 Bellmawr, NJ

Bar none the easiest Financial Instution that I have ever dealt with.

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Elmer Howard
May 6th, 2016 Phoenix, AZ

Quick and easy way to get a business line of credit for needed cash infusion and to build your business credit profile.

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Rich and Company
May 6th, 2016 Angier, NC

Krystal was very helpful. Talked me thru some of the security stuff I was wary off Would not have gotton my business without her.

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Nick Steele
May 6th, 2016 Sanford, ME

Quicker than advertised no problems

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AMALIA DIMARINO
May 6th, 2016 Williston Park, NY

This has been the best experience in obtaining a business loan. Fast, secure, an "all online" paperwork operation. No hassles, but plain and simple. Highest loan amount I've been offered so far!

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AJI
May 6th, 2016 New York, NY

Mis-leading information on borrowing costs. Was told something and was charged differently. No one returns calls or emails to resolve this.

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Nicole
October 28th, 2015 Easton, PA

I took out a loan with Kabbage this year, and although it was expensive (as all of these atypical loans are), I paid it back on schedule, and the process worked great. I will borrow from Kabbage again. I've seen negative reveiws regarding collections if paid back late, or that the available funds will not be there when you need them. So far I have not seen that, but I will be ready with another lender as well during our slow business season so that I have funds available.

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Earl Kliethermes
August 17th, 2015 Jefferson City, MO

A great service at a fair rate BUT you cannot depend on them in a business situation. They pull frequent unannounced surprises. "Our computer model just happened to re-evaluate your funding limit while you were paying and you won't be able to re-borrow." Sometimes you may check your account to find an available balance. If you do the prudent thing and wait until you need it, it may vanish within a day or two. Most questions are met with "even I can't speak with the special team that handles that." or "The computer makes that decision. Nobody can interact with the computer model." In other words, straight answers are not available.