Kabbage Review 2020
Kabbage is an easy and speedy way to get up to $150k in a line of credit for your business to use as working capital. Decisions are made in 10 minutes or less online and you can choose from 6 or 12 month terms. There are no origination fees or prepayment penalties, and you'll have access to funds immediately.
Maximum Loan Amount$150,000
Loan Duration6 to 12 months
APR1.5% - 10.0%
Origination FeeNo fee
Launching your business is exciting, fun and hectic all at the same time. Once you are up and running, funding can be a speed bump that slows many companies down.
This is the spot that many business owners become stuck. You need to tackle new marketing campaigns or production, but lack of revenue due to being a startup can leave you empty handed. Your credit score might be hurting with all the inquiries and small business loans you have taken out.
This is where Kabbage comes in. We've put together this Kabbage review for you to decide if this can be a service that may be of use to your business.
What Is Kabbage?
Kabbage is a company that offers small business loans to companies based mostly off of factors other than credit history.
To put it simply, Kabbage is a resource for business owners to get their hands on cash quickly.
"But I've applied for loans before and it's a painful process!"
Not with Kabbage.
By providing simple information about your business, your application is evaluated and you will know within minutes if you are approved.
To say they have been around the block would be an understatement. Kabbage has provided over $3 Billion in funding to over 100,000 businesses. When looking at Kabbage reviews, keep this in mind. They are no small player.
How Does Kabbage Work?
The minimum requirements to get a Kabbage loan are fairly straightforward. Your business must be one year old. You also must have revenue of $50,000 annually or $4,200 per month for at least three months.
The application process is extremely easy. From start to finish you can expect to spend about 10 minutes applying for your line of credit. You can even complete the entire application from your smartphone.
Kabbage offers up to a 150k line of credit. Instead of providing one lump sum, you are able to pull out however much you need from your line of credit up to once per day.
Just because you get approved for your line of credit does not mean you actually have to use it. This is a nice feature for those who are able to find funding from an investor or other lender after being approved with Kabbage.
You only pay on the funds you withdrawal.
How Much Does Kabbage Cost?
You can choose between 6 and 12 month terms to pay back your loan. The amount you borrowed will be broken out into either 6 or 12 payments, depending on which you select.
You make monthly payments, plus a fee. These fees range between 1-10% and are determined during your application.
When conducting this Kabbage loan review, it quickly became apparent that the fee structure could be quite confusing at first glance. You will pay 1/6 or 1/12 of your loan depending which repayment length you have chosen, plus a fee ranging from 1-10%. This fee is separate from your APR, so the cost of each loan can add up quickly.
Borrowers can expect to pay anywhere from 24-99% interest on a Kabbage loan. The company is upfront about these costs, though they are rather high.
This company has been around long enough to work with many clients. This is beneficial for those doing research because of the amount of Kabbage loan reviews that are available to look over. Past customers are very honest about their experience with Kabbage.
Should You Use Kabbage?
There is no credit score requirement to be approved. Because of this, it a great option for those with lower scores. Kabbage will review your company’s information such as bank accounts, tax ID numbers, and length you have been in business. These are the factors that will determine the terms of your loan.
Kabbage is a way to quickly get approved for a business loan or line of credit. With the barrier to entry being relatively low, most business owners should be able to qualify and get approved within minutes.
The cost of Kabbage is high when compared with other lenders, but the convenience and quick turnaround may make up for this.
If you are in need a business loan and have a low credit score, Kabbage may be one of the better ways to receive funding for your business.