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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.
Pros & Cons
- No credit score necessary
- Quick loans
- Transparent about fees
- No long-term options
- Front-loaded payment plan
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.
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 ...Read full review
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...Read full review
What is Kabbage funding?
Kabbage is a lender that offers online small business loans. The application process is straightforward:
- Create a profile for your business to help Kabbage better understand your needs.
- 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.
- 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%.
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.
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Reviewed Jan. 23, 2023
Kabbage's Deceptive Business Practices. I had a line of credit with Kabbage and decided to pay off the balance in full so I requested the complete payoff and was given the balance. I tendered the entire balance per company rep only to be told that I incurred a loan fee because I didn't pay by a certain date. I was fine with that "loan fee" but come to find out there's more fees that continue to accrue even if you've paid the principal back early. Pay attention to what you agree to because Kabbage is very deceptive and I asked to have the customer service call reviewed to verify my claim. They reviewed the call but will not let me listen to the call. Very shady practice in not holding staff accountable because the rep provided incorrect information. Date of experience: January 22, 2023
Reviewed Sept. 15, 2022
I've been using Kabbage Checking for 11 months and it's worked OK until anything requiring customer service. I noticed a charge I didn't recognize so I contacted them. The customer service rep said they would have to close my account and couldn't guarantee I could reopen another account. So while on the phone they had me transfer all funds out of my account to my personal account. Then while still on the call after I transfer out all funds she says actually we don't need to close your account just cancel your debit card. This didn't make sense because the unknown charge was done through ACH not even with my debit card & PIN. Eventually they did issue me a credit for the unknown charge and sent a new debit card. The old debit card shows deactivated however it still seems to be working because I never updated the card info for autopay with a few services and they are still able to charge me.
I signed up for their Payments service to be able to accept credit card payments over 9 months ago and the application still hasn't gone through. My account still shows "You will not be able to accept payments or save new information until your Kabbage Payments account is approved. You should hear from us within 3 business days. In the meantime, feel free to explore Kabbage Payments." I even contacted them months ago about this and they said they would look into it but nothing ever happened.
Now the worst part is I received a check from a government customer that I can't deposit. The app just says "something went wrong, contact customer service." For over a week I've been contacting them and they couldn't tell me why it won't go through. I got answers such as try reinstalling the app, try again tomorrow, try again in 3 hours, maybe you're over your limit, maybe the check has a stop payment, etc. They said they would look into it and get back to me in 3-5 business days.
Finally I called again today and now they say their third party fraud detection service has determined the check to be fraudulent. No further explanation why just too bad for you. This is a check issued by San Bernardino County with all security features fully visible and I even deposited another check from the same customer 3 months ago. Now I have to request a new check to be issued to use at another bank since Kabbage requires you to write "For mobile deposit only to Kabbage Checking" under the endorsement. This is really hurting my business cashflow and they are basically forcing me to use another bank.
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Reviewed Aug. 4, 2022
Despite their Google search results description touting themselves as being quick to respond, the opposite is true. I applied for a business account in March 2022. No response after 3 days, so I logged in to see if there was an update, and I was being asked to provide utility bills in my business' name. I added a note that this is a small business I operate out of my home so that would not be possible, and asked for alternative documents they would accept. No response. 5 days later I log in again. Again they asked for business utility bills. I reiterated my previous response then never heard anything from them.
Today (August 2022) they email me. The first sentence reads, "We incorrectly declined your Kabbage Checking application..." Second sentence: "During a technical update to our document request system, your Kabbage Checking application was incorrectly declined." Third paragraph: "Kabbaget Checking is not accepting new applications currently." Gee? Really??? So glad they did not open an account for me. I clearly dodged a bullet.
Reviewed 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.
Reviewed 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.
Reviewed 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.
Reviewed 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.
Reviewed 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.
Reviewed 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?
Reviewed 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.
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