Kabbage Reviews - Financial Lender Pros & Cons

shira-mizrachi writer
By Shira Mizrachi
Updated August 26, 2020
Editor's Rating
100% Online Process
Customer Rating Reviews
Types of loans
  • Working Capital
  • Line of Credit
Loan amounts
$2,000 to $250,000
Terms of payment
6 to 18 months
  • Fast offer issuance.
  • No prepayment penalties.
  • Flexible loan amounts.
  • Periodic restrictions on products.
  • Additional fees associated with payments.
  • Term length options are restricted.
  • High rates.

Kabbage works with small businesses across a variety of industries to solve cash flow issues, regardless of reason or season. Anyone is eligible to apply for a Kabbage loan, but specifically, they provide solutions for retail, construction, medical, auto repair, beauty salon, truck driving, and pawn shop businesses. Business owners in these industries can receive specialized offers from Kabbage. Minimum requirements to fund are lax, so many small businesses can get Kabbage funding when they are unable to get approved elsewhere. Currently, Kabbage is also providing PPP funding in additional to their usual lending products.

Company Profile

Kabbage is a technology company established in 2009 to quickly solve financial woes for small businesses. Kabbage’s founder, a former banking group CEO, realized that fast funding was an underserved niche with a lot of opportunities to help people across the country and a lot of room for business growth. His hand-picked leadership team is composed of talented individuals with years of leadership experience in the finance industry. These individuals have executed their vision and Kabbage has innovated on payment efficiency, program flexibility, and customer service in the small-business lending industry.

The founding team went through hundreds of potential business names, and eventually (with some spelling variation) settled on “Kabbage,” a play on “Cabbage” which is old-school slang for “money.” This witty name effectively represents the ultimate goal of each business working with Kabbage – getting money fast.

Credit Policy

Kabbage requires that a business has been running for at least a year and brings in revenue of $50,000 annually or $4,200 monthly over the course of the previous three months.

The application also requires that the business operates through business-specific bank accounts which must be linked at time of application.

Specific information regarding other minimum criteria is not publicly available, but we recommend that in addition to the above criteria, business owners should also have a personal FICO score of at least 560.


Kabbage is flexible when it comes to issuing approvals, and anyone who is initially rejected by the automated system is eligible to appeal the decision and contact Kabbage support. While approval is still not guaranteed, often times, Kabbage will reconsider the application and issue an approval upon manual review or ask for additional information to further consider the applicant.

Target Market

Kabbage is willing to work with almost any industry, but provide specialized service and offerings to merchants within the following industries:

Kabbage has a lot of experience working with these industries specifically and are able to expertly cater to their unique needs. Conveniently, these are also all businesses that can suffer from unpredictable conditions and cash flow stress, enabling the business and Kabbage to enter a mutually beneficial relationship.

Cautionary Industries

Kabbage excludes the following industries from their lending program:

Term Length

Kabbage offers terms ranging from 6 to 18 months.

What’s Required to Apply

Kabbage has very simple application requirements – after setting up an account, an applicant submits some basic information about themselves and their business. An applicant can get an approval in just a few minutes after linking their bank account or payment processing data. Before applying for a Kabbage loan, you should be prepared with:

After submitting their information, a majority of customers can get a response immediately, or on the same day, though it is at times unclear exactly what conditions may trigger further review. Kabbage lending tries to fund as many customers as possible, approving even in cases where other lenders might not.

It is important to note that Kabbage does a hard-pull credit check: meaning that the inquiry will be visible on the applicant’s credit history.

Customers not approved immediately can request review and expect to hear back within 24 hours, oftentimes with an approval.


Kabbage advertises fee rates of 1.0125 to 1.10,

In actuality, because of Kabbage’s flexibility regarding the history of businesses they often work with, rates can vary and fluctuate a lot. While, the highest rates can reach as much as 1.6, these are exceptionally rare cases. Typical rates vary from 1.24 to 1.4, depending on the business history as well as loan terms – shorter term loans will often have higher rates associated with them, as is typical for any alternative lender.

Kabbage obscures these higher rates by front-loading the fees – the first half of each term has higher payments associated with it, so while Kabbage does offer a prepayment discount, it is not as significant as it may seem.

Kabbage also provides an optional payment processing service, which charges fees of a flat 2.25% per card processing transaction, regardless of transaction size.


Kabbage does not formally disclose stacking policies but they have been known to accept 2nd (and in some cases even 3rd) position loans. Because of their digitized process, it can be unclear whether stacking is an issue, or if an applicant has other issues associated with their file. So as a rule, it is okay to apply for a 2nd position with Kabbage, but we advise applicants to be prepared to take further steps to get approved.

Documentation Fees

Kabbage does not charge a documentation fee for submitting their application, meaning there is no obligation to accept the offer should it not be an appropriate fit.

Origination Fees

Kabbage does not charge an origination fee.

Renewal Policy

Kabbage can make more funds available as the loan is paid off. There is no explicit renewal condition but making timely payments and maintaining a good relationship is sure to increase chances of a renewal.

Interest Forgiveness

Kabbage does not have any prepayment fees, and therefore forgive some interest on early payments. However, because fees are front-loaded, this interest forgiveness is not very significant, unless the loan is paid off considerably faster than the set term.

Loan Use

Once funding is provided, as long as it is used towards business-related expenses, Kabbage does not restrict how the funds are spent.

Common expenditures covered with working capital loans include:

Online Reputation

Kabbage has an A+ rating with 4.5 stars average rating on the Better Business Bureau.

Happy reviewers mention the speed and quality of service, as well as the convenience of applying and signing up online. They also mention how Kabbage is easy to use, and works to help specific industries.

Some frustrated customers mention issues with service, misleading rate information, or the unexpectedness of daily payments. Another customer mentioned never hearing back after applying. Finally, a reviewer mentioned that it was difficult to refinance their loan after accepting initial terms.

Licenses & Accreditations

Kabbage is accredited with the BBB and has been mentioned in high profile publications like Forbes.com, nerdwallet.com, and techcrunch.com.

Kabbage loans are issued by Celtic Bank, Member FDIC. Payment service is provided by Fifth Third Bank, OH.

Company Contacts Details

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Customer Reviews

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