Kabbage Business Loan Review

Kabbage Business Loan is a business financing offering by Kabbage, based in Atlanta, GA. Founded in 2008, Kabbage offers access to business loans in 50 states (and Washington, DC).

What are Kabbage Business Loan’s rates?

Kabbage Business Loan offers a fixed APR business financing product that ranges from 16% APR up to 67.5% APR.

Does Kabbage Business Loan charge an origination fee?

No, Kabbage Business Loan does not charge a loan origination fee. A loan origination fee is what some lenders charge for processing, underwriting, and funding a loan. Typically fees range from 0.5% to 5% of the loan amount. Whenever possible, go with lenders that don’t charge origination fees.

What limitations does Kabbage Business Loan set on the purpose of the loan?

Kabbage Business Loan considers loan applications for business purposes, such as:

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

What types of business loans does Kabbage Business Loan offer?

Not all business loans are made equal. The type of loan you choose will determine the range of rates and terms you receive. Kabbage Business Loan provides access to the following business loan types:

• Lines of Credit

Does Kabbage Business Loan charge prepayment fees?

No, Kabbage Business Loan does not charge prepayment fees. This means you will not have to pay additional fees if you decide to pay the loan off early.

How much can you borrow from Kabbage Business Loan?

Loan amounts start at $2,000 and go up to $250,000.

What is the maximum loan term you can get with Kabbage Business Loan?

Kabbage Business Loan offers business loans with terms ranging from 6 to 18 months. Having the option of longer terms allows borrowers to take on larger loan amounts while keeping monthly payments more affordable. However, the longer the term of your loan, the more interest you will pay.

What do you need to qualify for Kabbage Business Loan?

Kabbage Business Loan requires companies to be in business for at least 12 months. Businesses must have a minimum annual revenue of $50,000 to be considered.

When it comes to credit scores, Kabbage doesn't have a set minimum or maximum. People with all types of credit can apply.

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 Business Loan 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 are, of course, eligible for the services offered by Kabbage Business Loan. Permanent resident / green card holders are also eligible to apply.

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

• Proof of income
• Proof of identity

Does Kabbage Business Loan report your account activity to credit bureaus?

Yes, Kabbage Business Loan 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.