Kabbage Reviews

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By: Scam Risk - Expert Reviewer

Are you a small business owner looking for a loan provider?

Are you worried if your business would ever qualify for a loan because perhaps of a bad credit score?

There is a way! And you’ve landed on the right page.

In this blog post, I will review one of today’s lending platforms that provide lenient eligibility criteria that allow small business owners like you to get access to funds quickly and conveniently.

But this benefit comes at a very high price.

All details regarding Kabbage are here in this review to give you enough insights so you can make an informed decision for your next business venture.

Let’s dive in!

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Table of Contents

What Is Kabbage ?

Kabbage is an Atlanta, Georgia-based FinTech lending site.

Its focus is predominantly on small businesses using an electronic service to quickly provide qualified candidates with loans.

Venture-backed by various financial companies, Kabbage began offering loans in 2011.

The organization expanded with a UK office in 2013 and is now recognized as a global disruptor that promotes funding for small businesses.

Through lending platforms like Kabbage, small companies without credit history or bad credit scores can now obtain a loan response in as quick as 10 minutes upon application.

However, this easy and quick access to loans isn’t cheap. It has higher interest rates and requires a personal loan guarantee.

In comparison to the regular term loan provided by most online lending sites, Kabbage only offers the business line of credit via its automated application procedure, the line of credit range stretches up to $250,000.

Who Owns Kabbage?

In 2009, CEO Rob Frohwein, Chairman Marc Gorlin, and COO Kathryn Petralia co-founded Kabbage to offer financial support or funding to small companies in a short amount of time – something that other lenders have not done in the past.

Frohwein was the CEO of LAVA Group, an investment bank for intellectual property and technologies, before forming Kabbage.

Eligibility Criteria

You must meet the following conditions to be able to qualify for a small business line of credit and become a Kabbage customer:

Minimum taxable income: 50,000 dollars

Minimum Time in Business: 1 year (For lines up to $150,000, 3 years is required.)

Other factors that Kabbage will also consider are bookkeeping, banking, social media and vendor accounts of your corporation to accept or deny your application and in some cases, to potentially assist you to be eligible for a higher line amount.

What Is The Fee Structure For A Kabbage Loan?

Kabbage lines of credit have APRs of between 24 and 99 percent.

You pay a percentage of the borrowed amount per month, the interest, and a charge of between 1% and 10% of the gross loan amount.

For the first two months, the six-month plan includes a higher charge, up to 10 percent, which goes down to 1 percent in the succeeding four months.

Kabbage Review: Who Should Apply?

For company owners who have had difficulty applying elsewhere, Kabbage may be a perfect option for a line of credit.

Although APRs start higher than most lenders, there are no minimum credit score criteria to qualify, so small business owners with bad to average credit score can be a good source of financing.

Great for:

  • Borrowers who have lower credit ratings
  • Businesses with a good profile online
  • Borrowers who quickly need funds

Bad For:

  • Businesses who do not use bookkeeping or internet banking systems
  • Borrowers in need of a term loan

Kabbage Funding Does Not Work With The Following Businesses/ Industries:

  • Nonprofits
  • Financial institutions
  • Gambling
  • Businesses located outside the 50 U.S. states and territories
  • Businesses that have huge outstanding balances with other lenders
  • Firearms
  • Marijuana/CBD
  • Lending

How to Get a Loan With Kabbage

You can proceed with the application process if you fulfill the minimum Kabbage Funding loan criteria.

Application And Underwriting Process

Your application starts of course by creating your Kabbage account.

Once you’re done creating, they will get both your personal and business info which includes the following:

  • Your Name
  • Business Name
  • Business Type
  • Home Address
  • Business Address
  • Sector
  • Phone Number
  • SSS Number
  • EIN
  • Accounting Documents for a minimum of 3 months

After you have submitted the information mentioned above, you will be asked to link the finance platforms you use to your business loan application for Kabbage Funding.

You will need to link your business checking account, together with all other online services used by your business, and they will ask you to include the login credentials for each account that you communicate with.

Some examples of these online services are:

  • Amazon
  • PayPal
  • eBay 
  • QuickBooks 
  • Stripe
  • Xero 

Synchronizing as many business services as possible is crucial in your application, since the more business income you will display, the more likely you become eligible for a credit line.

Based on the data they collect from your synced accounts, they analyze and underwrite your loan.

Therefore, the more synced accounts that display your business performance and overall sales, the more evidence they provide to underwrite your credit line.

Their online algorithm executes the underwriting after you have linked your accounts, so you can get an approval decision in minutes.

You can immediately see the size of your credit line, interest rate, and repayment terms once you’re loan is approved.

The choice of deciding between a six-, 12-, or 18-month repayment period would be offered to certain clients.

Your funds will be transferred to the account you’ve given after signing your loan agreement.

It can take just a few minutes to process funds deposited into a PayPal account, while it may take up to three days to collect the funds in your company checking account.

You can start pulling money from your credit line after receiving the funds, and pay only for what you spend.

For credit lines over $200,000 and in situations where Kabbage Financing has difficulty checking your company records, note that the application process will take longer.

If they do not accept your funding request the first time, their algorithm uses the accounts you connected to keep track of your company.

They will notify you when you finally fulfill their business line of credit criteria.

Your account will also be periodically re-assessed along these lines to see whether you are prepared for any improvements to your credit line or fees.

Does Kabbage Perform A Hard Credit Check?

Though Kabbage is not particular with your credit score, it demands a minimum FICO score of 560 (an average consumer checks in at 640 or higher) for the small business owner, since the firm would use credit scores to identify terms and rates..

How Does Kabbage Line Of Credit Work?

The line of credit’s structure enables you to tap periodically into your funds and pay back fast to better address any obstacles along the way.

For small companies, Kabbage Funding provides revolving credit lines with a maximum of $250,000 .

Does Kabbage Build Business Credit?

Kabbage uses various criteria for assessing the creditworthiness of a small business than conventional banks typically have, but building credit for your business is still fine, even if you have personal credit in your own name that is less than ideal.

Try to use Creditera in order to review your company credit score.

What Is The Minimum Credit Score For A Loan For Small Business Owners?

Suppliers of business loans typically consider a credit score that ranges between 640 and 700 to be good, but not the best.

What Credit Score Do You Need For Kabbage?

Kabbage requires a minimum credit score of 560, a minimum of one year in service, and a minimum of $50,000 in total annual revenue.

Do You Have To Pay Back Kabbage Loan?

Kabbage charges a flat recurring fee every month, instead of interest, and when you pay back early, you won’t get a penalty, contrary conventional loans.

You’re still poised to seize your the next opportunity with the safety of a Kabbage credit line.

Is Kabbage FDIC Insured?

Yes, Kabbage is FDIC insured.

The money you placed into the account is FDIC insured by Green Dot Bank, Member FDIC up to the limit permitted by regulation, upon checking your identity during sign-up.

How Long Does It Take For Kabbage To Approve A PPP Loan?

With Kabbage Funding, you can easily and quickly be accepted for a PPP loan.

A Kabbage representative told Business Insider that, within five business days of your funding request, Kabbage will deposit the money to your bank account.

How Do I Close My Kabbage Account?

To delete a Kabbage account, you will have to make sure that your credit line is entirely paid for.

You can then uninstall your account directly from the Kabbage dashboard or directly keep in touch with a Kabbage representative to help you close your account.

What Happens If You Default On A Kabbage Loan?

The loan amount may be signed over to a collection agent if the lender finds a debt in default.

When the collection agent fails to secure a debt refund, the agency will take the case to court to seek avenues such as garnishing salaries or imposing a lien on the property of a creditor.

How Long Does Kabbage Take To Fund?

Depending on your credit, loans deposited into your company checking account take up to 3 days to process.

The funds are automatically paid to the vendor when you use your Kabbage Card, and you are given a six-month loan for the transaction amount.

What Bank Does Kabbage Use For PPP?

Kabbage is in partnership with a technology-driven bank and authorized lender of the SBA toprovides cash-flow solutions for small businesses, particularly offering Paycheck Protection Program (PPP) loans to American main-street businesses that are worth billions of dollars.

Are Kabbage Loans Personally Guaranteed?

You will need to personally guarantee that you can pay back your loan upon signing a loan agreement with Kabbage. However, you do not have give any collateral, whether real estate or personal.

Does Kabbage Do SBA Loans?

Online lenders like Kabbage can be a great choice to access working capital quickly, whether you need short-term lending or long-term funding.

They will easily offer small business loans of up to $250,000 because their loan application process is fully automated.

How Long Will SBA Loans Take?

Typically, from request to funding, the loans take about 30-45 days.

However, approval period will take anywhere from one and six months.

There are more factors to remember, as the 504 funding scheme is a dual-approval loan with both a Certified Development Company (CDC) and the SBA.


Kabbage cares more about the financial security of a company than the credit score of the holders.

To qualify for a Kabbage line of credit, there is no minimum credit score required. Instead, to apply for a line of credit of up to $100,000, you would need to be in service for at least one year and declare annual revenue of $50,000.

Your corporation would need to be at least three years old or $500,000 in total sales if you wish to apply for more.

To decide on your line of credit terms, Kabbage will also analyze the online accounts of the firm, including online banking accounts, retailer accounts and social media accounts.

eBay, Amazon, PayPal, QuickBooks, Etsy, Xero, Chase, Wells Fargo are some of the online services and accounts that you will need to connect to Kabbage.

The more accounts that you connect to your Kabbage account and the more profits that you can show, the more you can borrow.

In certain situations, funds are received by the borrowers on the same day, making Kabbage one o fthe best options to quickly and efficiently get funds.

You may either opt to collect funds through PayPal, wherein the funds can be available on the same day, or via a business bank account, wherein funds can be collected after 1 to 3 days.

Kabbage does bring another major benefit if you are still using PayPal: If PayPal users course through payments via PayPal, they can easily receive funds.

  • The eligibility criteria of borrowers are lower than banks
  • No prepayment penalty
  • No conditions for a credit score
  • No supplementary costs
  • The application process is simple and clear.
  • Clear and insightful website ads


The higher APRs is one major drawback of Kabbage.

APRs are between 20 percent and 80 percent because Kabbage does not need a minimum credit score to apply and provides quick and easy access to funds.

If you compare to other online lenders, this is quite high because most rates start from 8 percent to 10 percent, and it’s way higher than rates of a bank or SBA.

The fee structure of Kabbage is also a little difficult to grasp, and paying early won’t save you a lot of interest.

Kabbage utilizes a recurring subscription rate instead of using interest rates. This fee varies from 1.5 to 10.0 percent of the amount of the line.

Ideally, by paying early, you might save on rates, but because Kabbage originally charges higher fees, you are not going to save nearly as much.

To illustrate, if you borrow $10,000 for six months with a charge of 10 percent, a principal for one-sixth of the total will be included in the monthly payment together with $1,000 worth of loan fees for the first two months, and around $200 for the remainder.

When you pay back a month early, you’re just going to save $200 in fees – although there is no prepayment penalty involved when dealing with Kabbage.

Since Kabbage provides short-term lines of credit only, it is not sufficient for all needs in a business.

If you need a loan offer of more than $150,000, you want terms longer than one year or if you want a term loan, Kabbage isn’t a viable idea.

The lender, Kabbage, only provides a product with a line of credit of up to $150,000 and a six or twelve-month term.

  • Not open to certain industries
  • High interest rates
  • No options available for long-term funding

Is Kabbage In Fundera’s Network?

Kabbage Inc. is on the Loan Network for Fundera.

Kabbage has been thoroughly vetted by the Fundera team and has decided that the bid is one of the best in its commodity category.

You can be confident you’re having straightforward, equal prices on a best-in-class commodity if you are dealing with Kabbage.

Kabbage Review: Kabbage Customer Reviews

You’ll learn that they’re pretty decent if you search Kabbage ratings from their existing and former clients.

On the Better Business Bureau (BBB), the firm has garnered an A + grade.

That being said, in their reviews, typical complaints claim that their interest rates are too high.

While borrowers with bad credit are undoubtedly paying an expensive rate, this is the cost of dealing with a lender who approves borrowers with lenient eligibility criteria.

Their interest rates are clear from the start so you can decide early on if their rates work for you.

Other Kabbage business loan concerns cover issues relating to billing and collection, product logistical issues, and customer service-related issues.

The reviews aren’t all negative, though.

Users appreciated how simple the submission process was and how fast their funding was received.

The loan and repayment terms were clear to grasp and customer support was prompt and responsive if there was ever a problem.

Those who moved from conventional banks were shocked to find out how quick it could actually be to acquire funding using Kabbage.

They strongly recommended Kabbage over traditional banks for quite a number of reasons.

One major reason is that they conduct ultra transparent transactions, with full disclosure of all fees involved and interest rates.

Is Kabbage A Legit Lender?

For Paycheck Protection Program (PPP) loans, Kabbage is a legit choice.

Kabbage has made this its focus ever since the COVID-19 crisis started. It is able to process up to $2 million in PPP loans.

If you are in need of cash flow solutions, Kabbage may be the go-to lending platform.

Is Kabbage Going Out Of Business?

After a tough 2020 for the SMB lender, Amex has acquired SoftBank-backed Kabbage.

The two companies recently reported that Kabbage, which had developed a lending platform that uses machine learning algorithms to analyze and loan out capital to small businesses, is being swallowed up by American Express.

Final Verdict: Is Kabbage A Good Deal?

There is just a lot of reasons for small businesses to like Kabbage.

Most small businesses can qualify almost immediately because of its lenient qualification requirements including having bad credit scores, and able to get funding very quickly – though interest rate can really be pricey.

This is one major benefit why small businesses or companies want to use Kabbage.

The application process is made simple and straightforward and money is readily available upon approval with no hidden costs.

Overall, Kabbage is a very transparent lending site which is contrary to traditional banks that have a lot of hidden fees and extra charges which a typical customer would love.

Kabbage’s fees can, however, be very costly compared to conventional banks.

I would recommend shopping around first around before deciding on Kabbage or some other lender out there.

The Best Option Compared To Kabbage!

What if you never needed to go to a crumby lender or lenders ever again? What if you never had to stress about getting an application rejected because of a bad personal credit score?

What we’re about to talk about real quick is a business model that will give you funding Kabbage could only dream of providing for you.

We’re of course talking about…

Digital Real Estate!

With digital real estate, you don’t have to worry about a credit score or your personal credit.

Hell, you don’t even have to worry about going to lenders about a high credit limit in general because your business expenses are virtually non existent.


The reason why most people need lenders is because they are going to start a company that operates in a physical brick and mortar that has small margins.

We hate to tell you this…

But because of the current political climate and all this talk of a “new normal”, going into the brick and mortar space isn’t a good option for any business idea right now.

What you should really look into is the digital real estate model.

All you have to do is build a simple website, do a little on and off page SEO and presto, you’re at the top of google!

Ok, cool, but what’s a website on the top of google worth anyway?

The trick to get is worth a lot of money is to build a site for call in jobs like tree service or roofing.

Let’s take a roofing for example…

The average roofing job is worth $5,000-$10,000, and a lead is worth $500-$1,000 or 10%. This means that if you generate 10 calls or $50,000 of revenue, you could earn $5,000 from that site for the month!

That is high levels of real estate rent numbers you’re pulling in!

Now imagine just how easy it is to scale this business out…

You can build these sites in less than a day…we know because we’ve tried.

Could you imagine what having just 10 of these sites would look like for your monthly income?

Talk about never having to worry about a credit score or going to lenders ever again.

Ok, but how easy is it to get clients for something like this?

Super easy, in fact our team has tried it!

Business owners all over the country are hungry for the chance at more business right now. If you can be the one to consistently bring jobs to them each month, they’ll have no problem throwing 10% your way!

Even if you have a brick mortar business right now, you could use this to give it the kind of funding Kabbage couldn’t give you if your credit score isn’t high enough.

In fact, many people who joined the training course about digital real estate started out just like that!

They wanted to get more inbound clients for their company so they started with building a website and ranking it on google locally.

After just a few months they had calls rolling in for their company that were producing more than the capital Kabbage would have been able to provide for them!

Soon after seeing how profitable it was for them, they decided to build more of these sites in different areas and markets and take a little sliver to deliver on all the jobs they were getting for people.

If you have a bad personal credit score and don’t think a lender or lenders like Kabbage offers will approve your application we recommend checking out this digital real estate course!

You get hands on training that will walk you through step by step of how to build these assets out!

Not to mention a great group that is there to answer questions you might have 24/7.

If you’re looking to get funding fast without having to deal with all the headaches of an application, low personal credit score, funding manager, and the occasional shady lender…

Check out this course!

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