Kabbage Business Loans
If you’re looking to fund your business, Kabbage® offers access to fast, straightforward, and flexible small business loan funding. They have provided access to over $7 billion to more than 185,000 business owners since their inception in 2009.
Qualifying businesses can secure access to a line of credit* through Kabbage of up to $250,000¹ and qualify in as little as minutes¹. Kabbage will review your business revenue to better assess your business’s performance and, once qualified, you can start using available loan funds immediately to stock up on inventory, hire employees, invest in equipment, or pay for unexpected business expenses.
Instead of paying interest on your business loan, borrowers will pay a monthly fee rate, which is primarily based on your business’s performance. You can apply online to see what rates and terms you qualify for in just a few minutes.
Kabbage Loan Types Available
Line of Credit
Good for: Fast Cash | Bad Credit
One of the greatest perks of accessing working capital through Kabbage is that it provides an online application process that’s fast, making it a good choice for business owners looking for quick funding.
Because they charge higher fees than some traditional lenders, Kabbage is also a great option for business owners who are having difficulty getting approved for a lower cost loan due to imperfect credit. When considering borrowers, they place more consideration on a business’s performance and revenue and less on credit score. It should be noted that this isn’t a traditional line of credit, meaning the line is uncommitted and each draw is a separate installment loan.
- Credit Limits: $2,000 – $250,000
- Loan Terms: 6, 12, or 18 months²
- Requirements: Minimum qualifications include at least 1 year in business and $50,000 annually or $4,200 monthly in business revenue over the past 3 months³
Unlike many lenders, Kabbage charges a monthly fee instead of interest on their business loans. This fee can range from 1.5% – 10% of the total amount borrowed. It is reduced after a few months in the case of 6- and 12-month loans, and it will continue for as long as you have a balance.
For example, a 6-month term at a 4% fee rate will charge the full 4% the first two months, and 1.25% for the remaining months. A 12-month term at the same 4% fee rate will charge the full 4% for the first 6 months, and 1.25% for the remaining months. If you pay off the loan principal early, you no longer are responsible for the monthly fee payment for the remaining months. You can see more examples of their fee structure on Kabbage’s Loan Rates and Terms page.
Since the fees are significantly reduced after a few months in the case of 6- and 12-month loans, there’s less incentive to repay your loan early as compared to a traditional personal loan that charges standard interest.
For 18-month loans, the monthly loan fee is calculated in full at the start of your loan period and then divided equally among the 18 months. The fee continues for the full loan repayment term, regardless of whether or not a premium balance remains.
Overall, compared to traditional lenders on the market, loans through Kabbage are expensive due to their high fees, especially on their longer-term loans.
- Quick, automated qualification process
- Fast access to cash
- No origination fees or prepayment penalties
- Less focus on credit score and history
- Transparent fee structure
- High rates/fees
- Majority of the fees are within the first few months, leaving little incentive to repay the loan early
Kabbage has a fast online application process that can take just a few minutes to complete. The online form will ask for business information as well as some personal information, followed by Kabbage prompting you to securely connect a business account. This can be your bank or another business service, such as PayPal or Amazon.
Your application will run through an automated review and you’ll receive a decision in as little as minutes¹. This will include a one-time hard credit check.
Before completing the loan process, Kabbage will send you a Smart Box, a tool that will help you understand the costs and terms involved with your loan, including the APR comparison and loan term in months.
If your business is approved, it can take anywhere from 0-3 business days to receive funding.
Some business details you’ll need to provide:
- How much funding you’d like to secure
- Whether or not you need funds immediately
- How you heard about Kabbage
- Industry type (i.e. agriculture, construction, finance, etc.)
- Company structure (i.e. LLC, corporation, etc.)
- Date your business was established
- Tax ID Number
- Annual revenue
Some personal details you’ll need to provide:
- Job title
- Birth date
- Social Security Number
Privacy & Security
Kabbage is a reputable online lending platform that has securely connected over 1 million data sources. They have an A+ rating with the Better Business Bureau and are certified for their customer privacy.
User information is protected through the use of computer safeguards including firewalls and data encryption using TLS technology.
Kabbage customer support includes a phone number where you can reach a live customer agent 7 days a week, an email address to send inquiries, an online contact form, and a blog.
They also offer an online help center on their FAQ page which reviews topics like Kabbage fees, loans, security, the application process, general information about the company, and payments.
Overall, Kabbage is a reputable online lending platform that could be a great fit for some borrowers, but not all. Their fast funding and application process, along with their fair standards for credit score and history, make them a solid option for business owners who need quick funding, have not-so-great credit, and don’t mind the potential for higher fees.
Their line of credit business loan allows borrowers to secure access to up to $250,000¹ for 6, 12, or 18 months², and the fee rate depends on a variety of business performance factors. Borrowers are welcome to apply for free to see what rate and credit limit they qualify for.
925B Peachtree Street NE
Atlanta, GA 30309
*Credit lines and pricing are subject to periodic review and change, including line and pricing reductions, line and pricing increases, or line eliminations. Individual requests for capital are separate installment loans. All Kabbage® business loans are issued by Celtic Bank, a Utah-Chartered Industrial Bank, Member FDIC.
- Kabbage can approve you in minutes for up to $200,000 when we are able to automatically obtain your business data and verify your bank account. Lines of credit over $200,000 require a manual review. In some situations, errors may occur during the sign up process, or we may need to send micro-deposits to confirm your bank account for security purposes. If this is the case, it may take up to several days to provide you with access to funding.
- Not all loan lengths are available to all customers. Customers can view their available term lengths after qualification.
- This is not a guarantee of qualification, but rather the minimum qualification criteria.