October 15


Kabbage Reviews

Are you a small-business owner looking for a loan provider

Do you worry that your business might not be eligible for a loan due to a poor credit score?

There's away! You're on the right page.

This blog post will discuss a lending platform that allows small businesses to quickly and easily access funds.

However, this benefit comes at a high price.

This review contains all details about Kabbage to help you make informed decisions for your next business venture.

Let's get started!

What is Kabbage?

Kabbage, a FinTech lending website based in Atlanta, Georgia is called Kabbage.

It focuses primarily on small businesses that use an electronic service to quickly offer qualified applicants loans.

Kabbage, a venture-backed financial company, began offering loans in 2011

The company expanded to include a UK office in 2013. It is now recognized worldwide as a disruptor that supports funding small businesses.

Kabbage is a lending platform that allows small businesses to get loans in as little as 10 minutes.

This quick and easy access to loans is not cheap. This loan has higher interest rates and is subject to a personal loan guarantee.

Kabbage offers a business line of credit, which is a lot more than the standard term loans offered by many online lending websites. The automated application process only allows Kabbage to offer the line of credit up to $250,000.

Who owns Kabbage

Kabbage was founded by CEO Rob Frohwein and Chairman Marc Gorlin in 2009. This allows small businesses to receive quick funding or financial support - something other lenders have never done.

Frohwein, who was also the CEO of LAVA Group (an investment bank for intellectual property, and technologies), before he founded Kabbage.

Criteria for Eligibility

To be eligible for a small business credit line and to become a Kabbage customer, you must meet these conditions:

Minimum taxable income: 50,000 dollars

Minimum Time in Business: 1 Year (For lines above $150,000, 3 Years is required.

Kabbage will also take into account your bank, vendor, and social media accounts to determine if you are eligible for a higher line of credit.

What is the Fee Structure for a Kabbage Loan?

Kabbage credit lines have an APR of between 24 percent and 99 percent.

A percentage of the loan amount is charged each month. The interest and a charge equal to 1% to 10% of the total gross amount are also payable.

The six-month plan has a higher cost, up to 10%, for the first two months. This charge drops to 1% in the subsequent four months.

Kabbage Review: Who Should Apply?

Kabbage is a great option for company owners who have struggled to apply elsewhere.

Although APRs are higher than those offered by most lenders, they do not require a minimum credit score to be eligible. Small business owners with low credit scores can still get financing.

Great for

  • Lower credit ratings are a disadvantage for borrowers
  • Online reputation is a plus for businesses
  • Borrowers who urgently require funds

Bad for

  • Companies that do not use internet banking or bookkeeping systems aren't eligible
  • Borrowers who need a term loan

These Industries/ Businesses are not eligible for Kabbage funding:

  • Nonprofits
  • Financial institutions
  • Gambling
  • Companies located outside of the 50 U.S. States and Territories
  • Businesses with outstanding balances with lenders
  • Firearms
  • Marijuana/CBD
  • Lending

How to Get a Loan with Kabbage?

If you meet the minimum Kabbage Funding loan requirements, you can continue with the application process.

Underwriting and Application

The first step in your application is to create a Kabbage account.

After you are done creating, they will receive both your business and personal information. This includes the following:

  • Your Name
  • Business name
  • Types of businesses
  • Address at Home
  • Business Address
  • Sector
  • Phone Number
  • SSS Number
  • ERIN
  • Accounting documents for at least 3 months

Once you have completed the above information, you will be asked for the link between the finance platforms that you use and your Kabbage Funding business loan application.

You will need to link your company checking account together with any other online services you use. They will also ask for login credentials for every account you communicate with.

These online services include:

  • Amazon
  • PayPal
  • eBay
  • QuickBooks
  • Stripe
  • Xero

It is important to synchronize as many business services as you can in your application. The more income you have, the better chance you have of being approved for a credit card line.

They analyze your data from synced accounts and then underwrite your loan.

The more accounts that show your overall business performance and sales, the better your credit score will be.

After you have linked your accounts to their online platform, the underwriting process is completed. You can receive an approval decision within minutes.

Once your loan has been approved, you can instantly see how much credit you have, the interest rate, and the repayment terms.

Certain clients would have the option to choose between a 6-, 12-, or-18-month repayment term.

After signing the loan agreement, your funds will be transferred into the account that you have provided.

While it can take only a few minutes for funds to be processed into a PayPal account and up to three days for funds to be collected in your company's checking account, it could take up to three working days.

After receiving funds, you can begin to pull money from your credit card and only pay what you spend.

Note that credit lines exceeding $200,000 or in cases where Kabbage Financing has difficulties checking your company records will take longer.

If they reject your request for funding the first time, the algorithm will use the accounts you have connected to track your company.

When you meet their credit criteria, they will notify you.

These lines will be used to periodically review your account to determine if you are ready for any changes to credit or fees.

Is Kabbage able to perform a hard credit check?

Kabbage does not require a credit score minimum of 560. However, small business owners must have a FICO score of at least 560.

How does the Kabbage Line Of Credit work?

You can tap into your funds periodically and pay back quickly to address any issues.

Kabbage Funding offers revolving credit lines up to $250,000 for small businesses.

Can Kabbage help build business credit?

Kabbage uses different criteria to assess the creditworthiness of small businesses than traditional banks. However, building credit for your company is fine even if your personal credit is not ideal.

Credit is a great tool to check your company's credit score.

What is the minimum credit score for a loan for small business owners?

Business loan providers consider credit scores between 640-700 to be acceptable, but not the best.

What credit score is required for Kabbage?

Kabbage requires a minimum credit score 560, at least one year of service, and at most $50,000 in annual revenue.

Are You Required to Pay the Kabbage Loan Back?

Kabbage charges a flat monthly fee instead of interest. If you pay back early you won't be penalized, unlike conventional loans.

With the security of a Kabbage Credit Line, you're ready to seize the opportunity.

Is Kabbage FDIC Insured?

Yes, Kabbage has FDIC insurance.

After verifying your identity at sign-up, the FDIC insured money that you have placed in the account is Green Dot Bank Member FDIC.

What is the time it takes for Kabbage to approve a PPP loan?

Kabbage Funding makes it easy and quick to get a PPP loan.

Business Insider was told by a Kabbage representative that the money will be deposited to your account within five business days after you submit your funding request.

How do I close my Kabbage account?

You will need to ensure that your Kabbage credit line is fully paid before you can delete an account.

You can uninstall your account from the Kabbage dashboard, or contact a Kabbage representative directly to close your account.

What happens if you default on a Kabbage loan?

If the lender discovers a default, the loan amount could be transferred to a collection agency.

If the collection agency fails to collect a debt repayment, it will take the case to court and seek other avenues like garnishing wages or placing a lien on the property of a creditor.

How long does Kabbage take to fund?

Loans deposited into your company checking accounts can take up to three days depending on your credit score.

When you use your Kabbage Card to make the transaction, the funds are automatically transferred to the vendor. You are also given a 6-month loan to cover the amount.

Which Bank does Kabbage use for PPP?

Kabbage has partnered with a tech-driven bank and an authorized lender of SBA to provide cash-flow solutions to small businesses. They offer Paycheck Protection Program loans (PPP) to American main-street companies that are worth billions.

Kabbage loans are personally guaranteed?

Kabbage will require you to provide proof that you are able to repay your loan. You do not need to provide collateral, personal or real, for your loan.

Are SBA loans available to Kabbage?

Kabbage is an online lender that can help you quickly access working capital, regardless of whether you are looking for short-term or long-term financing.

Because their loan application process can be fully automated, they will offer small business loans up to $250,000.

What is the time frame for SBA loans?

The average time it takes to get a loan approved is between 30-45 days and funding.

The approval process can take between one and six months.

You should also remember that the 504 financing scheme is a dual-approval loan, with the CDC and the SBA.


Kabbage is more concerned about the financial security and credit scores of its holders than it is about the company itself.

There is no minimum credit score to be eligible for a Kabbage credit line. To apply for a Kabbage line of credit up to $100,000, however, you will need to have been in service for at most one year and to declare an annual income of at least $50,000.

If you want to apply for additional funds, your corporation must be at least 3 years old and have $500,000 in total sales.

Kabbage will review your online accounts to determine the terms of your credit line. This includes online bank accounts, retailer accounts, and social media accounts.

You will need to connect to Kabbage with Amazon, eBay, PayPal, QuickBooks and Etsy as well as Chase and Wells Fargo.

You can borrow more money the more accounts you connect to your Kabbage bank account.

Sometimes, the funds can be received by the borrower the same day. This makes Kabbage one of the best options for quickly and efficiently obtaining funds.

You can choose to collect funds via PayPal. The funds will be available the same day or via a business account. Funds can be collected within 1 to 3 working days.

Kabbage offers another benefit to PayPal users who are still using PayPal. They can receive funds easily by making payments through PayPal.

  • Borrowers have lower eligibility requirements than banks
  • No prepayment penalty
  • Credit scores are available without conditions
  • There are no additional costs
  • The application process for a visa is easy and straightforward.
  • Clear, informative website ads


Kabbage's major disadvantage is its higher APRs.

Because Kabbage doesn't require a minimum credit score in order to apply, APRs range from 20 percent to 80 percent. They also provide quick access to funds.

This is a very high rate compared to other online lenders. Most rates start at 8 to 10 percent and are much higher than those of banks or SBA.

Kabbage's fee structure is not easy to understand. Also, paying early will not save you much interest.

Kabbage uses a recurring subscription rate to replace interest rates. The fee is 1.5 to 10.0% of the amount of your line.

Although it is possible to save rates by paying early, Kabbage charges higher fees.

For example, let's say you borrowed $10,000 for six months at a 10 percent charge. A principal payment equal to one-sixth will be added to the monthly payment. There will also be $1,000 in loan fees for the first and second months, and $200 for the third.

You can save $200 by paying your monthly fees early. However, there is no prepayment penalty when you deal with Kabbage.

Kabbage does not provide long-term credit, so it's not enough to cover all business needs.

Kabbage is not a viable option if you require a loan offer exceeding $150,000 or terms that last more than one year.

Kabbage is a lender that only offers a product with a credit line of up to $150,000 and a term of six- or twelve months.

  • Some industries are not eligible
  • High interest rates
  • There are no options for long-term financing

Kabbage in Fundera's Network

Kabbage Inc. is a member of the Loan Network for Fundera.

Fundera has thoroughly reviewed Kabbage and determined that it is the best bid in its commodity category.

Kabbage is a trusted supplier of best-in-class commodities. You can feel confident that you will receive straightforward, equal prices.

Kabbage Review: Kabbage Customer Reviews

If you look at Kabbage ratings of their clients, you'll find that they are quite decent.

The firm received an A+ grade from the Better Business Bureau (BBB).

However, most complaints about their interest rates were made in their reviews.

Although borrowers with poor credit will pay a high rate of interest, it is the cost of working with a lender that approves borrowers who meet lenient eligibility requirements.

You can determine if they work for you by looking at their interest rates right away.

Kabbage also has concerns about business loans. These include billing and collection, product logistics, customer service, and customer service.

However, not all reviews are negative.

The submission process was simple and the speed with which funding was received was appreciated by users.

The terms of the loan and repayment were easy to understand and customer service was quick and responsive when there was a problem.

People who had previously moved to conventional banks were surprised to discover how fast it was to obtain funding through Kabbage.

For a variety of reasons, they strongly recommend Kabbage to traditional banks.

They are known for being transparent in their transactions and revealing all interest rates and fees.

Is Kabbage a legitimate lender?

Kabbage is the best option for Paycheck Protection Program (PPP), loans.

Since the COVID-19 crisis, Kabbage has been focusing on this issue. It can process PPP loans up to $2,000,000

Kabbage could be your best option if you need cash flow solutions.

Is Kabbage Going Out Of Business?

Amex acquired Kabbage, backed by SoftBank after a difficult 2020 for the SMB lender.

Two companies reported recently that Kabbage, a company that had created a platform for lending that uses machine learning algorithms to analyze small businesses and lend capital, was being taken over by American Express.

Final Verdict: Is Kabbage a Good Deal?

Small businesses have many reasons to love Kabbage.

Because of the lenient requirements, including bad credit scores and low credit scores, most small businesses are able to qualify within a few hours. However, interest rates can be high.

This is why Kabbage is a popular choice for small businesses and companies.

The application process is simple and straightforward. Money is available immediately upon approval without hidden costs.

Kabbage is an open lending platform that is transparent. This is in contrast to traditional banks which have hidden fees and additional charges that customers would not love.

However, Kabbage's fees are often more expensive than those of conventional banks.

Before you decide on Kabbage, or any other lender, I recommend that you shop around.

The Best Alternative to Kabbage

Imagine if you didn't have to visit a lender or crumby lender again. Imagine not having to worry about your application being rejected due to a poor credit score.

We're going to quickly talk about a business model which will provide you with funding Kabbage can only dream of.

Of course, we're talking about...

Digital Real Estate!

Digital real estate means you don't need to worry about your credit score or personal credit.

You don't even need to worry about lenders asking for a high credit limit because your business expenses are almost non-existent.

Take a look

Most people require lenders because they plan to start a business that is based in brick and mortar with small margins.

We are sorry to say this...

However, the current political climate and the talk of a "new Normal" make it difficult for any business to enter the brick and mortar market right now.

The digital real estate model is something you need to look at.

You only need to build a website and do some on-page SEO.

Okay, great, but how valuable is a website at the top of Google?

To get a job that is worth the money, you need to create a website for calling in jobs such as roofing or tree service.

Let's say we have a roof.

A typical roofing job can be worth $5,000 to $10,000, while a lead is worth $500 to $1,000 or 10%. If you make 10 calls, or you earn $50,000 in revenue, you can earn $5,000 per month from this site!

This is a lot of rent you are getting in real estate!

Imagine scaling this business up.

These sites can be built in less than one day. We know this because we have tried.

Imagine what a mere 10 sites could do for your monthly income.

Imagine never again worrying about your credit score or dealing with lenders.

Okay, but is it really that easy to get clients to buy something like this?

It's super easy! In fact, our team actually tried it!

There are many business owners across the country who want more business. They'll be happy to give you 10% if you are able to bring them jobs every month.

Even if your credit rating isn't good enough, even if you own a brick-and-mortar business, this could be used to provide the funding Kabbage wouldn't approve you for.

Many people who took the course on digital real estate actually started off just like this!

They wanted to attract more clients to their business so they built a website and ranked it on Google locally.

They received calls within a matter of months from companies that were producing more than their capital Kabbage could provide.

They soon realized how lucrative it was and decided to expand their operations in other areas and markets.

This digital real estate course is recommended for those with bad credit scores.

This training will take you step-by-step through the process of building these assets.

You will also find a wonderful group of people who are available to answer any questions that you may have 24 hours a day.

You can get fast funding without the hassle of applying.

Take a look at this course!


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