Kabbage Reviews - Financial Lender Pros & Cons


shira-mizrachi writer
By Shira Mizrachi
Updated August 26, 2020
Editor's Rating
100% Online Process
Customer Rating 30 Reviews
Types of loans
  • Working Capital
  • Line of Credit
Loan amounts
$2,000 to $250,000
Terms of payment
6 to 18 months
Pros
  • Fast offer issuance.
  • No prepayment penalties.
  • Flexible loan amounts.
Cons
  • 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.

Exceptions

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.

Rates

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 frontloading 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.

Stacking

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 frontloaded, 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

General line:

Email:

Key personnel:

Social media:

SEE IF YOU QUALIFY

30 User Reviews

Preston Goldner

Aug 27, 2020 11:17 PM

My representative, Kevin, was great to work with. He ensured a smooth baking process and got me my business loan in just 24 hours. Kevin and Kabbage, I call them the 2 K’s, had been very helpful in supporting my beauty salon in Texas. Thank you so much! Would definitely borrow from Kabbage again!

Reply

Sibyl Reynolds

Sep 4, 2020 11:19 PM

What was your rate? Although the service was excellent, no doubt but I did find that the rates were too high. I own a beauty salon too in Boston. I got a working capital loan at 1.28 which seems like a lot for a longer term loan of 16 months. I got $100K.

Reply

Preston Goldner

Sep 6, 2020 11:20 PM

I was looking for $80,000 business loan and got it at 1.22 for 12 months. You’re right, the rates are kind of a lot but it also depends on your personal credit score. My credit score is around 670. What about yours?

Reply

Sibyl Reynolds

Sep 8, 2020 11:21 PM

Yeah, I remember my loan officer mentioning something about my credit score when I tried negotiating the buy rate for the business loan. I checked some other lenders too and they were all offering the same deal, more or less. Decided on Kabbage owing to their great customer service and the hassle-free loan application process.

Reply

Preston Goldner

Sep 10, 2020 11:22 PM

You’re right. I checked with working capital loan providers like OnDeck, Cardiff, FORA etc, and found Kabbage to be the most suitable for my line of business and credit.

Reply

Alize Armstrong

Sep 25, 2020 11:24 PM

I did not find Kabbage as smooth as most people claim in the reviews here. The application process was a pain. I added my personal account by mistake and wanted to delete it but couldn’t find a way to do that. Had to email them to correct the mistake and upon not hearing from them in a couple of hours, had to call them and tell them to remove the account, so I could add my business account. They took their time in reaching back to me and then more time in correcting the error. I could feel that working with this lender would not be pleasant because if a simple thing such as this could cause so much hassle, what could I expect throughout the entire process... I withdrew my application and started looking elsewhere. Not your ideal lender if you are looking for immediate and instant financing.

Reply

Dolores MarquardtV

Oct 14, 2020 11:25 PM

They were offering me $100K loan with a pre-requisite of a personal guarantee. It was not worth the hassle given I have an exceptional personal credit score and could get double the amount they were offering at much much better rates. You could really get better deals from local and bigger banks. Kabbage is a sham, if you ask me. I cannot see how small businesses could get support from business loans at such rates and with personal guarantees as well. I have dealt with many business lenders and repaid many of them early too. Kabbage looks for an exceptional credit and still doesn’t reward you much for that. You are better off with a regular bank or some other business lenders.

Reply

Ninaeum

Oct 28, 2020 11:26 PM

I’m not sure why you had such an experience but these people offered me a suitable merchant cash advance deal, better than most banks and other small business lenders and trust me, I checked with many. I own a small pharmacy in downtown Austin and this was my first time borrowing money from a bank or lender of any kind and so far, the experience has been great! I would definitely recommend there people!

Reply

Dolores MarquardtV

Oct 30, 2020 11:27 PM

Hmm.. I guess, given my business is bigger and has been around for some 15 years, they thought they could rip me off. I could have gone to a regular bank, as I mentioned earlier but I was looking for a smaller loan, so just wanted to try out with Kabbage!

Reply

Ninaeum

Nov 3, 2020 11:28 PM

Given your great personal credit score, you can look for a loan anywhere, like you yourself have mentioned, banks could offer you better terms. As for me, I am enjoying a great partnership with Kabbage and might even consider them again if needed!

Reply

Rogers Bayer

Oct 21, 2020 11:29 PM

Excellent service!

Reply

Orie Becker

Nov 12, 2020 11:29 PM

Kabbage offers great interest rates and the business loan is deposited in your account within 24 hours. Great lending service!

Reply

Walton Smitham

Dec 27, 2020 11:30 PM

The whole process is easy and smooth except some technical difficulties that I had to face, which took some time to resolve. But other than that, I got the business line of credit within 24 hours of approval of the business loan.

Reply

Mathilde Jenkins

Feb 3, 2021 11:31 PM

True! I came across a couple of technical difficulties too. Had to intimate these people via email and had to chase them too but it’s all right given the business loan deal I got was great and also the credit was remitted into my business account after 24 hours.

Reply

Monroeeum

Jan 3, 2021 11:33 PM

Mia has been a great loan representative to my retail business and has offered me great financial advice too. She has always been quick to response regarding my queries related to the business loan I received from Kabbage.

Reply

Jodie Effertz MD

Jan 27, 2021 11:34 PM

The application process is simple and easy. Kabbage has proved to be a great business resource for my small repair shop in Seattle. I had some pending tax payments and a couple of merchants to pay to. I could not have done it on my own, although business is going good. The merchant cash advance offered to me by Kabbage resolved the issues and I was able to clear all my debt. It’s easier repaying Kabbage on a monthly basis and everything is going great so far!

Reply

Lucile HammesII

Feb 10, 2021 11:35 PM

Probably one of the best lenders out there. They offer you flexible repayment terms and let you choose them too. The interest rates are quite all right too. Got a $125K loan for my trucking company in Minnesota. Almost through the deal with some 3 to 4 months left and it has been a great ride. The customer service is a bit slow but that’s all right given the influx of customers calling them everyday, it could get overwhelming. You get to them eventually if you keep trying.

Reply

Palma Kassulke

Feb 26, 2021 11:35 PM

The customer service is not just “slow”, it’s pathetic! Not everybody has the time and patience to keep calling them to reach them for a simple query regarding the remaining loan repayment amount!! I had been calling them for some 2 days and they were just not available and when my call was finally connected, they told me about these bloody technical issues and said they would email me once the issue is resolved! If they have such an influx of customers calling them, they should better invest in the customer service and make it smoother instead of treating their clients as if they have all the time of the world in their hands! I cannot just withdraw from the business loan deal with these people at the moment but I will definitely not do business with Kabbage again!

Reply

Lucile HammesII

Feb 28, 2021 11:36 PM

I’m sorry you had to face this but in my opinion, this happens everywhere. At least they are nice enough to call or email you back. Many don’t even do that!

Reply

Madonna Doyle MD

Mar 2, 2021 11:36 PM

Very glad to find that these people are back in business. This would be my second time with Kabbage, the first one was in 2018 when I was looking for a working capital loan for my newly established small business. I run a construction company in Manchester. I have applied for the business loan and so far, the conversation with Kevin has been great! I am hopeful for the approval and so is Kevin. Said, I’d get the merchant cash advance in two to three business days! Looking forward!

Reply

Mr. Hayley Kuphal MD

Mar 10, 2021 11:37 PM

Excellent business loan provider! Deposited 75K into my account within just 12 hours of approval! It cannot get faster than this! THANK YOU SO MUCH!!

Reply

Idell Krajcik

Mar 25, 2021 11:38 PM

Lightning fast service and instant cash deposit!!

Reply

Juliana Klocko DDS

May 6, 2021 11:38 PM

Pathetic service! Wasted half an hour on a telephonic conversation and then simply telling me they are currently not offering merchant cash advance to trucking businesses. Seriously??? They could have told me that in the first few minutes of the call when they asked me about my line of business! Untrained and unprofessional lender on the leash! Beware!

Reply

Nat Auer

Jun 10, 2021 11:39 PM

It did not begin so smooth. I had trouble accessing their website at first and then I couldn’t find the required tabs and buttons. I reckon the website was still under construction. I called the helpdesk and then the smooth sailing started! My customer service representative, Mia, was very helpful and friendly person. She not only helped me complete the application but also kept in touch with me until I got the business loan in my account. That took some 4 days, more than I was expecting but again, there were some technical difficulties. But my rep overcame them and got me the credit as soon as he could!

Reply

Misty Effertz

Jun 17, 2021 11:40 PM

Wow! It is as if, you have written about my experience. The exact thing happened to me but the representative was super nice and highly cooperative. I owe it to his responsiveness that I stuck with Kabbage. Otherwise, I would have given up due to their unresponsive and faulty platform. Thanks to Kevin who came to my rescue! I figure Kabbage owes so much to Kevin for he surely knows how to retain clients. The best representative so far!

Reply

Delilah Graham

Aug 19, 2021 11:40 PM

My husband and I run a small distribution company. We provide musical instruments. This is our third business laon with Kabbage and it is just as easy as the first one, if not more! Totally recommended!

Reply

Anne Funk

Aug 25, 2021 11:41 PM

SO SO much better than bigger banks like Wells Fargo, who only rip you off of your money. They simply aren’t interested in providing support. More like, looking for people to rip off. I applied for a business loan with Kabbage. Needed a merchant cash advance for my physiotherapy and massage centre. The online business loan process was very easy. I applied and got an email reply, asking for documents they needed to further the loan process. I attached the documents they needed and from their Mia took over. She took care of everything and helped me get the 150k business loan at the most reasonable and flexible terms. I used the business line of credit to manage my company’s payroll and pay off a couple of bills. Thanks to Kabbage for supporting me when the best of banks couldn’t!

Reply

Estell Flatley

Aug 28, 2021 11:42 PM

Kevin at Kabbage was great to work with! The lender offered us reasonable buy rates on its merchant cash advance. The loan manager kept in touch regularly via email and phone.

Reply

Candido Kassulke

Sep 2, 2021 11:42 PM

Impeccable service! They have no documentation or origination fee whatsoever which we all know is a pain for the borrower. It is also a source of pulling a good shitload money from the client. Kabbage charges none! The interest rates are quite reasonable too. Got a $50k business loan at 1.20! Received the money in my account in just 24 hours!

Reply

Betsy Treutel

Sep 20, 2021 11:43 PM

The loan officer went above and beyond to get a business loan deal for my technology firm in Manhattan! Forever grateful to Kabbage!

Reply