Features

Kabbage is a financial lender for small businesses. The company is based in Atlanta, Georgia; has an annual revenue of $17 million; and has provided just over $1 billion in small business loans since it was launched in 2008. All Kabbage business loans are made by Celtic Bank, a Utah-chartered industrial bank. Kabbage has an A rating with the BBB and, in 2014, was listed by Forbes as America's 37th most promising company.

How Does Kabbage Work?

Kabbage provides businesses with a line of credit they can access if and when needed. It works as a business credit card. Companies are only charged for the money they withdrawal not the entire line of credit.

To apply borrowers must create an online account and complete a short application form. The whole process takes less than 10 minutes. Kabbage bases approval and the amount of money it provides for a line of credit on real life financial data, not just on personal credit scores. Therefore, applicants must grant access to their business checking account or other payment platform accounts, such as PayPal, Amazon, EBay and Etsy.

What Are The Interest Rates?

Instead of interest rates, Kabbage charges monthly fees. Fees range from 1% to 13% of the loan amount for the first two months and 1% for the rest. To illustrate, a $10,000 loan with a six-month term would cost the average borrower $1,200 in fees. This is the equivalent of 40 percent APR. A $100k loan with a one-month repayment term has $4,000 in fees, the equivalent of a 48% APR. There are no prepayment penalties so you can save money by paying early.

How Much Money Can I Borrow?

Lines of credit range from $500 to $100,000.

Which States Does Kabbage Operate In?

Kabbage operates in all 50 states.

What Is the Application Process Like?

Kabbage's application process is as fast and straightforward to complete. The entire transaction, from filling the loan application to receiving the funds can take less than 10 minutes. Kabbage determines eligibility and how much cash a business can qualify for based on factors such as their seller rating, time in business, number of transactions and revenue.

How Is Kabbage Better than Other Lenders?

Kabbage is faster than most other business loan providers. While traditional banks can take weeks or months to process a loan, Kabbage can handle a small business cash advance from application to funding in less than 10 minutes. Kabbage's typical fees are the equivalent of 40 percent APR, which may seem expensive when compared to traditional bank loans, but is competitive when you look at the rates charged by alternative sources of credit for small businesses.

  • Interest APR
    36% - 48%
  • Loan Amount
    $2000 - $100000
  • Max Loan Term (Months)
    12
  • Minutes
  • Same Day
  • 1-7 days
  • 1-2 weeks
  • 2-4 weeks
  • Min Revenue
    $50000
  • Min Years in Business
    1
  • Credit Type Offered
    Line Of Credit
  • Intended Use of Funds
    Lease Improvements Product or Service Expansion Working Capital
  • Institution Type
    Direct Lender
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0 votes

Kabbage provided me with the money I needed to keep my business going strong without costing me high rates and horrible interest charges like other lenders.


0 votes

I've been using Kabbage for quite some time now, and have been happy. They provide quick loans and prompt funding, exactly when you need it. The customer service department is great. The only issue is that I wish they had some sort of repeat customer benefits program. My loan amount has only been slightly raised, and I've been a reliable customer for a few years now. I wish they'd put something in place, to show their appreciation to those who pay on time.


0 votes

Kabbage really helped my business! I run an online shop that's been going strong for a few years now. I use Kabbage to buy raw materials to make the products I sell. Whenever I find a great deal on materials, I order in bulk in order to save money. I get out loans to help with this. Kabbage is always quick when giving me a loan, which is great because online sales for materials don't last forever! I'd definitely recommend them!


0 votes

Because my small business is only a few years old, my credit history as a business owner is pretty short. Due to this fact, it has been nearly impossible to get funding from traditional banking institutions and other small business lenders. Kabbage was able to provide me with a loan, but their interest rates can be pretty high. I'm pretty sure it's because my credit history with my business is only a few years old, but the higher payments can be a little tough. Luckily, I've been able to turn ... my loan into a profitable advertising campaign and have been making enough to easily cover the payments. More Less


0 votes

I can't take the high interest rates that Kabbage offers. My small business was fairly new when I was looking for a loan, and most other lenders turned me away because I wasn't established enough. I went to Kabbage and they stated that they cater to businesses that are newer, or will be denied for loans at other lenders. But the way they offer loans to small businesses is at a pricy rate. If you are a small business owner with a newer business, you will have to sell your ... soul to make the monthly payments. More Less


0 votes

I like how this company looks at your business data much more than your credit score. Yes, credit score is important when it comes to paying off a loan, but it isn't the end all and be all. You can have a so-so credit score and be running a successful and profitable company. Kabbage acknowledges that and rewards you by granting you a loan.


0 votes

I've seen reviews about Kabbage's high interest rates, but honestly, they are better than online loans I've received before. I've gotten loans, cash advances, etc. for my online business, and I've regretted it too many times. It was time for a switch, and Kabbage helped me out with lower rates. They may be higher than other lenders, but hey, you have to appreciate what you can get. They're also very online-business friendly, which is awesome.


0 votes

I run a successful little business where I make and sell items on various internet platforms and at craft fairs. I look more toward the craft fairs, simply because you pay one fee to be there. With online shops, you're constantly paying fees, dues, etc. just to post your items. I took out a loan with Kabbage, and the interest is insanely high. I've had to cut back on my online selling simply because I can barely pay the dues for the online retailers. I've had to greatly change my ... business structure because of the high monthly payments I need to make to Kabbage every month. If you can get business loans elsewhere, I would. More Less


0 votes

I needed a short-term lender to help pay for a few costs of my Etsy shop, and after looking around, I decided to give Kabbage a shot. I'd never taken out any sort of business or pay day loan, so it really was a shot in the dark. I didn't run into any issues during the application process, and received a short-term loan within a week. My only complaint would be the high interest rates. Although these can really add up, my experience was pretty positive, so I'd probably choose ... them again. More Less


0 votes

I'm so extremely impressed with Kabbage's customer service. I come from a long line of customer service and management positions, so when I was treated so well by Kabbage's representatives, it was great. I've gotten loans for my small side business through other big box names, as well as conventional banking institutions, but no one else treats you like Kabbage. They really take the time to speak with you and resolve your questions and concerns.

0 votes

I am very happy with these guys. I use the loans to pay for Pay per click advertising on the internet and I know I will pay at the end of the month before the first month expires, so it works like a charm for me. I can use the cash to buy more and more ads as I know my formula works and for every $1000 bucks you get the "interest" is very low or at least reasonable. I used this loan as my "working capital". My only advice ... is don't use it like a credit card advance. More Less


0 votes

If you were asking me to rate this business lender based on interest rates, they'd easily get 1 star. They are insanely high, but I was aware when I took out my loan. Other than that, I haven't run into any issues. People mention bad customer service, but I haven't had to speak with them yet. I needed this money in a pinch for advertising, and in return, I made enough in revenue to pay back the loan in advance.


0 votes

I've been using Kabbage for about a year now to really grow my Ebay business. I buy and sell antiques and vintage merchandise. Generally, I'll get a short-term loan to buy products when I attend estate sales, upscale flea markets, antique sales, etc. I'm able to have an abundance of money when I need it most. In turn, I get the most out of my buying trips and make the most profit in the long run. The interest is high, but I am satisfied otherwise.


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