Kabbage Funding: 2024 Business Loan Review

What are some of the downsides to using Kabbage Business Loans?

You will need a personal guarantee to qualify.

Kabbage, like other lenders, requires a personal guarantee for all business lines of credit, which means you (the borrower) will be personally liable for repayment if your company defaults on a loan.

The monthly fee structure may be complicated when compared to the traditional APR fees.

Instead of an APR, Kabbage charges a fee each month that you are paying back your loan. The fee amount will vary depending on your loan term but will range between 0.25% to 3.50%. If you are trying to compare your loan offer from Kabbage to other business loans, it may be difficult to understand the differences in the amount of interest you’d be paying.

Cash flow must be verified by logging into your online banking accounts.

While not entirely uncommon, the prospect of logging into your bank accounts during your application process may be something you simply do not want to do. Kabbage ensures they take the highest safety precautions possible and do everything they can to protect your information but there are many other business lenders who do not require this.

Do I need a credit check to take out a business loan with Kabbage?

Kabbage will conduct a hard credit check at the time you submit your final application. A soft pull may occur prior to this but soft pulls do not affect your credit score. Prior to the hard credit inquiry Kabbage will notify you and ask for consent.

Are there any hidden costs and fees associated with Kabbage business loans?

The fees that relate to Kabbage business loans are minimal. You will not need to worry about application fees, origination fees, or early payment fees which are common with many types of loans. The only fees that may apply are late payment fees and unsuccessful payment fees but these are easily avoidable if you pay your bills on time and ensure the accounts you use to make the payments are properly funded. The exact terms that will inform how these fees are charged will be outlined in your loan agreement so you will always know what the requirements are.

Additionally, Kabbage charges a small monthly fee of 0.25% to 3.50% depending on your loan term. This is instead of the traditional APR that is charged and according to Kabbage these monthly fees are equivalent to an APR of 9.00-36.00%. So while the fees are something to be aware of, ultimately they will cost you less than a loan with a traditional APR.

How is Kabbage’s customer service and support?

Kabbage offers customer support by phone and email. You can simply email support@kabbage.com if you want to reach out that way, or you can call their customer service agents at 888-986-8263 from Monday through Friday between the hours of 8:00 AM and 9:00 PM EST.

How to qualify for a Business Loan through Kabbage

The qualifications to borrow from Kabbage may vary but generally you will be able to qualify if you have:

• Personal credit score of at least 640
• Be located within the United States
• Have been in business for at least one year
• Annual revenue of at least $50,000

How to Apply for a Business Loan with Kabbage

Applying for a business loan through Kabbage is a fast and entirely online process. You will start by creating an account on Kabbage’s website and then you will connect your business banking accounts to your Kabbage account. This allows Kabbage to quickly verify your information and in some cases they will be able to give you an approval notice immediately after your loan is submitted.

You will also have to provide some personal and business information that includes but is not limited to:

• Your name
• Your home address
• Your phone number
• Business name
• Business Address
• Business contact information including phone number
• The industry your business is in
• Tax ID for business
• Your social security number

If you are approved for your business loan, Kabbage will notify you and send you a loan agreement that outlines all the details about your loan so you will know what is expected of you up front. You’ll also be told what your monthly fee payment will be and Kabbage provides you with a comparable APR to help you understand how expensive or inexpensive the fee will be in the long run.

Is Kabbage Legit and Trustworthy?

In a word - yes. Kabbage is a legitimate financial institution and you can rest assured that your information is kept safe and secure. They use the best possible programs to keep your data secure. Kabbage is owned by American Express which further legitimizes the company as American Express is a well-known bank and financial provider - Kabbage also has access to American Express’s tools and policies when it comes to digital security.

Conclusion

Kabbage business loans are an ideal fit for any business owner who needs cash fast and would like a shorter repayment term. The application process is quick and easy and Kabbage will let you know before they run a hard credit check which will keep you informed throughout. Borrowers will have access to helpful financial tools like Kabbage Insights to help them boost their business and as long as loan payments are made on time successfully, there are no additional fees to worry about.