Kabbage

Kabbage

 3.9/5 (515 ratings)
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About Kabbage

Kabbage funding provides small businesses with short-term loans and lines of credit. Kabbage loans are available in six-, 12- and 18-month installments. If you choose a Kabbage line of credit, you could be approved for up to $150,000. There’s no obligation to use the entire amount, and you don’t pay anything until you withdraw money.

Overall Satisfaction Rating

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Pros

  • No credit score necessary
  • Quick loans
  • Transparent about fees

Cons

  • No long-term options
  • Front-loaded payment plan

Bottom Line

Kabbage provides businesses with fast loans and lines of credit. The speed comes with some high fees, but its loan calculator lets you see the costs upfront. The company approves lines of credit up to $150,000.

Top Kabbage Reviews

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Rated with 5 stars
Verified

I called very stressed over a payment due in 2 days. I spoke to an account health specialist Jonathan W. He immediately reassured me that they would work with me. ... I recommend ...

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Rated with 5 stars
Verified

Their online application was really easy and smooth on every step of the way. I have been in the business for 24 years and experienced few online applications over the years. This...

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What is Kabbage funding?

Kabbage is a lender that offers online small business loans. The application process is straightforward:

  1. Create a profile for your business to help Kabbage better understand your needs.
  2. Securely link your business accounts for Kabbage to review. You can add accounts from places such as Etsy, Amazon, Stripe, QuickBooks, PayPal and more. This gives Kabbage a thorough picture of your business performance.
  3. Kabbage's team quickly assesses your application and tells you how much funding you’re able to access.

The Kabbage app is available for both Apple and Android to assist business owners who work from their phones. It offers a fully mobile experience for every step of your loan, including application, funds withdrawal, making payments and account management. This streamlines the process for business owners who are always on the move.

Kabbage loan requirements

Unlike many other lending companies, Kabbage doesn’t require a credit score. Instead, the company looks at your business performance when approving your loan. Kabbage considers several factors, such as revenue consistency and cash flow. If your credit score is below average, Kabbage may still be able to help you.

Kabbage does have some eligibility requirements. You must have been in business for at least one year and have an annual revenue of $50,000. Alternatively, you can qualify if you’ve made at least $4,200 a month for the past three months. These are just the minimum requirements and do not guarantee qualification or approval.

For lines of credit, Kabbage requires a minimum credit score of 640.

Kabbage interest rates

The Kabbage loan structure is different than most lending companies. Kabbage doesn’t charge interest on its loans. Instead, the company charges a monthly fee on top of your monthly payment. Rates can range between 1.5% and 10%, depending on your business performance.

The fees are front-loaded, so you pay most of them in the first half of your loan term. Kabbage is transparent about its fees, and it provides a loan calculator so you know what to expect before applying. The costs are usually equivalent to 24% to 99% APR.

Lines of credit have an estimated APR range of 9% to 36%, and monthly fees range from 0.25% to 3.5%.

Kabbage FAQ

Who owns Kabbage?
American Express currently owns Kabbage. The deal was announced on Aug. 17, 2020.
Is Kabbage FDIC insured?
Yes. All Kabbage loans are provided by Celtic Bank, which is an FDIC member.
What credit score do you need for Kabbage?
Kabbage doesn’t specify a minimum credit score for its loans. Instead, the company takes your business performance into account. You must have at least one year in business and revenue of $50,000 annually or $4,200 monthly for the past three months.

Lines of credit require a minimum credit score of 640.

Do Kabbage loans require collateral?
No, it doesn’t. Your signature on the loan agreement is your guarantee that you’ll pay what you owe.

Is Kabbage legit?

Kabbage is a safe company to use for short-term business loans. Celtic Bank, an FDIC-insured institution, provides the company’s loans. It secures your information with the highest encryption standards available. Even Kabbage can’t see or store your personal information, making it very secure to borrow from them. Kabbage may be a good solution if your company needs a short-term loan — especially if your credit score isn’t ideal.

Kabbage Reviews

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How do I know I can trust these reviews about Kabbage?
How do I know I can trust these reviews about Kabbage?
  • 3,766,828 reviews on ConsumerAffairs are verified.
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Page 1 Reviews 0 - 10
Rated with 1 star
Verified Reviewer
Original review: March 23, 2022

I started the application process for the Business Checking with Kabbage 3 weeks ago. First, there was a misunderstanding with a mailing address. Please tell me what an application means by "mailing address"? It means where I would like to receive my mail from Kabbage if they send one. So I provide them with that. They said it should be the Physical address and not the mailing address, MISCOMMUNICATION, and WRONG terminologies used. That took them a week to get back to me to tell me that "By mailing address, they meant Operating address". Then my business is in a mall, so utilities are paid by the mall and my business pays rent and CAMS by check ONLY (NO UTILITIES BILL, OFCOURSE!). So I submit the lease with the mall as an address proof, because I have or will never have a utility bill, but seems like Kabbage does not understand how a business in the mall works. That took them one more week.

Then they asked for personal documents, like Driver's License, Bank Statements and Utility Bill. So I submitted Republic Services as one of the utility bills, because that is a utility bill. But for Kabbage, that does not count as one and hence they denied my application after making me wait for 3 weeks. Please tell me how Republic Services Trash/Garbage is NOT a utility? So, in conclusion first, Kabbage is not a FAST processing service, it is extremely slow. Then they do not communicate with you for over a week and I had to call them to check my own status, totally UNRELIABLE. And then their application process and reasonings are extremely flawed. They might have been the best banking company for small business in the history, but not anymore. They made me waste 3 weeks over nothing. It was an extremely bad experience and I am never doing my business with them.

Be the first one to find this review helpful
Rated with 1 star
Verified Reviewer
Original review: March 3, 2022

Hard to believe this group is owned by AmEx. I tried opening an account and kept running into hurdles. Main complaints: they don't notify/communicate at all. They wanted "business utility bills," in the business name. I don't have that since I work out of my home. I called in and confirmed I could submit my utility bills. Then I submitted them with a note confirming that's what I was doing. No response, but a week later the sign-up portal once again was asking for "additional documents" that were the same thing all over again. They didn't email or anything, you just have to go looking to see what's going on.

I called again and after a LONG hold, finally someone said they'd look into it and alert "the team" that I only have utility bills in my name, not the business name. Which I had confirmed twice already... it seems they aren't actually paying any attention to notes. And not communicating at all. Reading other reviews, I think I'm better off giving up and finding a better bank. Bummer.

3 people found this review helpful

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    Rated with 1 star
    Verified Reviewer
    Original review: Feb. 23, 2022

    I applied for a business line of credit online for my SMB Consulting business. Approvals were marketed to take "only a few days." I promptly provided all necessary paperwork, twice (they apparently lost the first files), over six weeks. At week nine, I was informed via email that they "couldn't verify my identity." This is odd given the level of detail and documentation provided (W9s, W2s, EIN letters, billing statements, etc.). Finally got in touch with a representative, I was informed that "the problem was on their end due to the fact that their (Kabbage) system is different than AMEX ... and as a result, when a user uploads information it doesn't properly capture the identification data."

    I was assured that the problem would be taken care of and that it was "escalated to a supervisor" and that I should be approved "shortly." Another three weeks transpired. I then received an auto-reply email informing me that my application was "denied" because "they couldn't verify my identity." Sent follow-up emails (7) and phone calls (3), but have heard nothing. I truly believe this is evidence of both incompetence and potential fraud, since it appears to be a stall tactic to wait for an interest rate hike by the Federal Reserve, which will only serve to increase the interest that they can collect. I will refuse to do any business with Kabbage or AMEX, at least until they divest themselves of Kabbage.

    5 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: Feb. 1, 2022

    Very poor service. Good interest rate, but customer service is very poor. One agent lied about the $300 promotion, said I qualified when apparently I did not. Waited for 5 months for a deposit that never came and could not resolve issue. Closed account.

    5 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: Jan. 16, 2022

    We figured the future was internet banking. Boy were we wrong. We signed up for Kabbage, we did the ACH deposit, which takes 5 days for them to approve which we're not sure what takes so long, but whatever.... then we placed our first business deposit in which were four checks and we really needed these deposits to take hold so we could begin using the funds. It had been a few days waiting on kabbage which took another 5 days so 10 days out we look at our account and the deposits are missing gone nowhere to be found no email no text no message no nothing from kabbage.

    We had to reach out to them. Contacted them. They said, "Oh the checks were made out to your business." Well it's a business account of course it is..." "No it has to be made out to you personally because you're a sole proprietor" ??? Keep your bank institution whatever you are. Kabbage quit scamming people. Liars. You won't be around long even borrowing American Express name.

    11 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: Dec. 6, 2021

    We started out liking them when we went through PPP. However trying to get someone on phone is horrible. We have sent numerous emails and left messages but not response. Why we are unhappy - they kept trying to access my personal financial information and sending letters saying they can not see all our accounts. We are a corporation - we provided our corporate accounts so why do they need to access personal accounts? I finally disconnected any bank links to them - as soon as I did they said we are not eligible to loan. We are a 34 year old company with many officers... Why do they need personal info from the COO? No other bank is so unorganized. How could American Express invest in this company?

    13 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: Nov. 23, 2021

    Worst customer service I have ever encountered. Not one person actually knows anything and the whole company feels like a scam. When you call them they say one thing one time then you get an email saying different. Then you call and they change back to what they said over the phone then you get an email saying something different. THEY DON'T KNOW WHAT THEY ARE DOING...STAY AWAY.

    12 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: Nov. 17, 2021

    Kabbage/K Servicing has refused to allow me to apply for forgiveness. They have trained their employees to lie and mislead me. I have been waiting 80 plus days for link for forgiveness. They keep lying and telling me it will be soon.

    8 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: Oct. 21, 2021

    Updated on 2/25/2022: After months of calls and emails, Kabbage still freezes my bank account. Even after I called in and asked to close my account, they put my request on hold for 5 months. If you are on the same boat, send an email to American Express Corporate Office and ask them to Intervene. You can find their contact information in Google. It appears that the Corporate office filed an official complaint on my behalf. Finally, a representative called me and offered a solution to withdraw funds. Still, they refuse to unfreeze my account. Kabbage is not an ethical bank. They baited people to sign up for an account and then keep soliciting you to get loans. They allow you to transfer funds in then hold your funds hostage. I hope American Express take Consumer Affairs feedback into heart and get a grip on this bank.

    Updated on 11/30/2021: AVOID AVOID AVOID! Please take the negative reviews in heart before you do business with this bank. Some had good luck with this company but most are frustrated like me. Opening a business checking was easy but unlock it is impossible. After numerous calls and emails, my account is still locked. Even after I have uploaded all the docs they required, no response, no unlocking. Imagine if you need these funds to run your business. They will swiftly ruin everything for you.

    Don't even bother to call them. Send an attorney letter instead. Wait time on phone is nearly an hour and they'll hang up on you in the middle of a conversation. It's unbelievable American Express would acquire such a company. We are sending an attorney letter to AXP Headquarter, to ask for help and intervention. Banks like Kabbage should not be in business. They are incorporated to create frustration, agony, and anxiety for customers.

    Original Review: I should have read reviews here before opened the account with Kabbage Business Checking. 3 days after account opening, they locked my account without any notification. After two lengthy calls, they say it'll take 5-7 days to unlock. Meanwhile, I have transferred funds in from my other bank, not a small amount. That fund is nowhere to find. I am contacting my attorney to prepare for a lawsuit if they can't reverse the transfer. A complete waster of time, money, and energy. Don't do business with Kabbage! They brand themselves as American Express but the customer service is completely lacking and they behave like scammer. They are going to ruin the reputation of American Express. Take actions to protect your name and customers, AXP!

    19 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: Oct. 12, 2021

    My account has been locked and payments started being declined. After 2 emails without any reply and 2 phone calls, a week later I got hold with someone that said they would contact me within 3 business days! Meanwhile, I have no access to my account and had to direct the payments to another account to avoid them to be declined. Very bad customer service.

    15 people found this review helpful
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