The application process for Kabbage funding is fast and simple. It takes minutes to get a financing decision once you complete the application. The company takes pride in its zero-paperwork application process and choices of repayment terms. The best part is there are no origination fees or prepayment penalties for a Kabbage line of credit.
In its 10 years of operation, Kabbage has worked with more than 200,000 companies and helped business owners to secure more than $7 billion in funding.
Consider Kabbage if you:
- Don’t have perfect personal credit
- Need cash fast
- Prefer a short repayment period
Kabbage Lender Review
Kabbage aims to address the biggest hurdle that small business owners face when growing their operations: limited access to capital.
The company offers a modern approach to lending that deviates from typical lenders and paperwork-heavy processes.
Kabbage doesn’t require a deposit or a personal guarantee, but the company assesses your business performance and personal credit profile to qualify you for funding. This assessment also determines the amount of funding you can get.
Kabbage Lines of Credit
Rates for lines of credit through Kabbage may be on the higher side, but the company makes up for that with speedy approvals that take minutes. (Some lenders need at least 24 hours to reach a decision.)
- Monthly fees for Kabbage lines of credit range between 1.5% and 10% of the principal amount.
- There are no origination fees or other hidden fees for Kabbage financing.
- Late fee for balance due of less than $100 is $10.
- Late fee for balance due of $100-$5,000 is $35.
- Late fee for balance due of more than $5,000 is $100.
A line of credit through Kabbage has monthly payments as opposed to daily or weekly payments that are common with other short-term funding options. Every new withdrawal you make from the line of credit will be treated as a separate financing instance, each with independent repayment terms and fees.
Why Get Financing from Kabbage?
- The company has a quick and simple application process, which involves providing basic personal and business details and linking your bank information with the Kabbage app. The process typically takes less than 10 minutes to complete.
- The application process doesn’t require paperwork. You can apply from anywhere through Kabbage’s mobile app by providing basic business information and linking your revenue data.
- The approval process is equally fast, taking minutes.
- Kabbage has an A+ rating by the Better Business Bureau.
The Pros of Kabbage
- Kabbage’s financing requirements are more flexible than most with no minimum personal credit score requirement. The company can provide funding to small business owners who may not qualify for other financings.
- The company’s automated lending platform speeds up the application and approval process so you can get fast access to working capital. It takes just a few minutes to get approved for the Kabbage lines of credit.
- Kabbage’s lines of credit feature monthly payments as opposed to the weekly repayments for competitors like Fundbox. Many short-term funding options from Kabbage’s competitors may have daily or weekly payments, which can disrupt cash flow.
- Kabbage makes access to funds extremely convenient post-approval. You can make withdrawals by logging onto Kabbage’s website on your computer, using the company’s mobile app or swiping your Kabbage credit card.
- Other than the monthly fee, there are no additional charges such as origination or maintenance fees.
- There is no penalty for paying off your financing early.
The Cons of Kabbage
- Interest rates are among the highest in the financing industry.
- Even if you qualify for lower monthly fees, Kabbage line of credit rates are still on the expensive side. If you can qualify for cheaper financing products, Kabbage’s competitors may be a better option.
- Kabbage’s lending services aren’t available for all types of businesses. The company doesn’t work with nonprofits or businesses in the firearms, marijuana, cannabidiol, lending, gambling and financial industries.
- Kabbage funding isn’t accessible to businesses with significant outstanding debts with other lenders.
- The company doesn’t report to credit-rating firms. Even if you have good borrowing behavior, you have no way of building your credit score through Kabbage. This can make it challenging to qualify for more affordable funding options in the future.
- Annual Revenue $50,000+ (or monthly revenue of $4,200 over the past 3 months)
- Time in Business 1+ Year
Kabbage Funding Application: What You Need to Apply
Kabbage Line of Credit Summary
Kabbage is perfect if you want fast and easy access to funding and price isn’t a major concern. It’s a great option for business owners who can’t access more affordable loan products.
If you have a good credit score and can afford to wait a few days, you may want to shop for more affordable financing options. That said, Kabbage’s lines of credit feature monthly, not weekly, payments, so repayment isn’t too disruptive to your cash flow.