Kabbage Small Business Lines of Credit

Kabbage Small Business Lines of Credit Review

Kabbage Small Business Lines of Credit is offered by Kabbage, a direct lender founded in 2008 and based in Atlanta, GA. Kabbage Small Business Lines of Credit are available in 50 states (and Washington, DC).

Kabbage Small Business Lines of Credit FAQ

What APRs does Kabbage Small Business Lines of Credit offer?

Kabbage Small Business Lines of Credit offers a fixed APR product, but they do not disclose their rates.

Does Kabbage Small Business Lines of Credit charge an origination fee?

No, Kabbage Small Business Lines of Credit does not charge an origination fee. An origination fee is what some lenders charge for processing, underwriting, and funding a business financing product. Typically fees range from 0.5% to 5% of the line of credit amount. Whenever possible, go with lenders that don’t charge origination fees.

What limitations does Kabbage Small Business Lines of Credit set on the purpose of the line of credit?

Kabbage Small Business Lines of Credit considers line of credit applications for business purposes, such as:

• Business Debt Refinance
• Equipment Purchase
• Lease Improvement
• New Location
• Product or Service Expansion
• Working capital

Does Kabbage Small Business Lines of Credit charge a late fee?

Yes, Kabbage Small Business Lines of Credit charges borrowers with a late payment fee of up to $10. The late fee is triggered if you're 4 days late.

Does Kabbage Small Business Lines of Credit charge prepayment fees?

No, Kabbage Small Business Lines of Credit does not charge prepayment fees. This means you will not have to pay additional fees if you decide to pay the line of credit balance off early.

How much can you borrow from Kabbage Small Business Lines of Credit?

Line of credit amounts start at $2,000 and go up to $25,000.

What is the maximum term you can get with Kabbage Small Business Lines of Credit?

Kabbage Small Business Lines of Credit offers business lines of credit with terms ranging from 6 to 18 months. Having the option of longer terms allows borrowers to take on larger line of credit amounts while keeping monthly payments more affordable. However, the longer the term of the amounts you borrow, the more interest you will pay.

What do you need to qualify for Kabbage Small Business Lines of Credit?

Applicants with a credit score of at least 640 and up to 850 may be eligible for Kabbage Small Business Lines of Credit. The minimum age to be eligible is 18 or the state minimum, whichever is higher.

Kabbage Small Business Lines of Credit does not have or does not disclose a minimum annual income eligibility requirement.

The Military Lending Act (32 C.F.R. § 232) prohibits lenders from charging service members more than 36% APR on credit extended to covered borrowers. APRs for the Kabbage Small Business Lines of Credit product fall outside of the MLA limits, and as a result, the product cannot be issued to these applicants. Active duty service members and their covered dependents are considered “covered borrowers" under the Military Lending Act.

U.S. citizens and permanent resident / green card holders are eligible to apply for the services offered by Kabbage Small Business Lines of Credit.

To qualify, applicants may need to provide the following documentation:

• Proof of income
• Business formation documents
• Proof of identity

What are the business financing requirements for Kabbage Small Business Lines of Credit?

To apply for Kabbage Small Business Lines of Credit, the applicant needs to provide the following documentation:

• Business license
• Business bank account

Does Kabbage Small Business Lines of Credit report your account activity to credit bureaus?

Yes, Kabbage Small Business Lines of Credit reports your account activity to the following credit reporting agencies:

• Equifax
• Experian

Making regular on-time payments to a creditor that reports to one or more credit bureaus will demonstrate your financial responsibility and may help improve your credit.

What types of business lines of credit does Kabbage offer?

Kabbage offers both secured and unsecured lines of credit. Secured lines of credit are typically secured by a blanket lien on your assets or a certificate of deposit.