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This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will be suitable for their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also review brands we are not engaged with). These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewer's finding and subjective experience and product popularity, impact the placement and position of the brands within the comparison table. In the event rating or scoring are assigned by us, they are based on the position in the comparison table, or according to other formula in the event specifically detailed by us. See our How we Rate page and Terms of Use for information. The reviews, rating and scoring are provided “as-is” without guaranties or warranties regarding the information contained in our website, which shall not be considered as endorsement. We make the best efforts to keep the information up-to-date, however, an offer’s terms might change at any time. We do not compare or include all service providers, brands and offers available in the market.

Kabbage Funding™ Business Loans

Jessica Cotzin Jessica Cotzin Last update:
Loan Amount
$2K-$250K
Min Credit Score
640
Funding time
0-3

If you’re looking to fund your business, Kabbage Funding™ offers access to straightforward 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 Funding of up to $250,000¹ and qualify in as little as minutes¹. Kabbage Funding 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

Kabbage Funding Line of Credit

One of the greatest perks of accessing working capital through Kabbage is that it provides an online application process that’s straightforward, 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: a minimum monthly revenue of $3,000

For a limited time only, you may be eligible to earn $250. *

To be eligible for this limited-time offer, apply for a Kabbage Funding line of credit between 11/21/2022 and 2/28/2023 at 11:59pm ET. If approved, add and verify your Funding primary account on or before 2/28/2023, and they’ll deposit $250 into it!

Get my rate

Unlike many lenders, Kabbage charges a monthly fee instead of interest on their business loans.  The following range can be applied to this fee:

  • 6-month term fees: 2-9%
  • 12-month term fees: 7.5-18%
  • 18-month term fees: 15.75-27%

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.

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.

Kabbage: Pros

  • Automated qualification process
  • No origination fees or prepayment penalties
  • Fair credit score requirements
  • Transparent fee structure

Kabbage: Cons

  • High rates/fees
  • Majority of the fees are within the first few months, leaving little incentive to repay the loan early

Application Process

Kabbage has a straightforward 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:

  • Name
  • Job title
  • Address
  • Birth date
  • Social Security Number

Get my rate

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.

Customer Support

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.

Final Thoughts

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.

Address

Kabbage

925B Peachtree Street NE

Suite 1688

Atlanta, GA 30309

Disclosures

* This offer is provided by Kabbage from American Express (“we”, “us” or “our”). Kabbage Funding™ loans are issued by American Express National Bank (AENB). To be eligible to earn the $250 associated with this offer, you must 1) apply and be approved for a Kabbage Funding line of credit between 11/21/2022 and 2/28/2023 at 11:59pm ET and 2) add and verify your designated business bank account (hereafter defined as “Funding primary account”) on or before 2/28/2023 at 11:59pm ET. AENB will deposit $250 into the Funding primary account you’ve successfully linked to Kabbage Funding within 30 calendar days from the date the account is verified. Limit one offer per new Kabbage Funding account. This offer (i) is not available to existing Kabbage Funding customers, (ii) is non-transferable, and (iii) cannot be combined with any other offer except as permitted by American Express. We reserve the right to modify or revoke this offer at any time. You may not receive the offer, if we determine in our sole discretion that your account is not in good standing, has a disconnected bank account, and/or you have engaged in abuse, misuse, fraudulent activity, or gaming in connection with the offer in any way or that you intend to do so. We may also cancel your Kabbage Funding account and other accounts you may have with us. The offer may be taxable income to you and may be reported on IRS Form 1099. You are responsible for any federal or state taxes resulting from the offer. Please consult your tax advisor if you have questions about the tax treatment of the offer. If you have any questions regarding this offer, please call 1-888-986-8263 Monday – Friday 8 A.M. to 9 P.M. EST.

Kabbage Funding offers access to a commercial line of credit ranging from $2,000 to $250,000; however, you may be eligible for a larger line of credit based on our evaluation of your business. Each draw on the line of credit will result in a separate installment loan. All loans are subject to credit approval and are secured by business assets. Every loan requires a personal guarantee. Total monthly fees incurred over the loan term range from 2-9% for 6-month loans, 7.5-18% for 12-month loans, 15.75-27% for 18-month loans, and are subject to change for future loans drawn under the available line of credit. Loans incur a loan fee for each month you have an outstanding balance. Not all customers will be eligible for the lowest fee. Not all loan term lengths are available to all customers. Eligibility is based on creditworthiness and other factors. Not all industries are eligible for Kabbage Funding. Pricing and line of credit decisions are based on the overall financial profile of you and your business, including history with American Express and other financial institutions, credit history, and other factors. Lines of credit are subject to periodic review and may change or be suspended, accompanied with or without an account closure. Late fees may be assessed. Loans are issued by American Express National Bank.
Kabbage Funding™, Kabbage Payments™, Kabbage Checking™, and Kabbage Insights™ are trademarks of American Expresss. Kabbage Payments, LLC is a registered Payment Service Provider/Payment Facilitator sponsored by Fifth Third Bank, N.A., Cincinnati, OH. Accounts offered by American Express National Bank. Member FDIC. Funds deposited within American Express National Bank deposit accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to at least $250,000 per depositor. Coverage amounts vary based on factors such as account ownership, beneficiaries, and number of accounts with the same institution. For additional information, you may visit the FDIC website at www.fdic.gov

 

 

Disclosure
This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will be suitable for their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also review brands we are not engaged with). These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewer's finding and subjective experience and product popularity, impact the placement and position of the brands within the comparison table. In the event rating or scoring are assigned by us, they are based on the position in the comparison table, or according to other formula in the event specifically detailed by us. See our How we Rate page and Terms of Use for information. The reviews, rating and scoring are provided “as-is” without guaranties or warranties regarding the information contained in our website, which shall not be considered as endorsement. We make the best efforts to keep the information up-to-date, however, an offer’s terms might change at any time. We do not compare or include all service providers, brands and offers available in the market.
Jessica Cotzin Jessica Cotzin
Jessica Cotzin is a writer and the Lendstart authority on small businesses and personal loans. She has been writing about personal finance and the loans industry for a number of years, and holds a bachelor’s degree in journalism from Florida Atlantic University.
This review is based on the writer's personal opinion.