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Lender
Rating by Finanso®
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The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Kabbage

Finanso.Multilogin™

About Kabbage

Kabbage is a data and financial technology firm situated in the Atlanta metropolitan area. It was formed in 2008 to automate the time-consuming online application process for small business owners.

Kabbage is an American Express-owned financial technology firm providing loans starting from $500. It was ranked the 36th fastest-growing private company in America by Inc. 500 in August 2015, after which the company went out to raise $135 million in a Series E investment round headed by Reverence Capital Partners in October 2015.

Kabbage accounts are issued by Green Dot Bank. Upon verification of the Cardholder's identification, the account funds are FDIC-insured up to the permissible limits through Green Dot Bank, Member FDIC. The coverage limit is calculated by adding all of the accountholder's money on deposit with Green Dot Bank. Banking services are provided by Kabbage Debit Mastercard issued by Green Dot Bank, Member FDIC, according to a license from Mastercard International Incorporated. Green Dot Bank and Green Dot Corporation do not provide any other Kabbage goods or services.

Pros and cons

Accepting applications from qualifying small businesses in the United States seeks to ease the loan process and provides fast access to working capital. However, before borrowing money online, it is critical to educate yourself on all of the benefits and drawbacks:

Pros

  • The application process is straightforward with little paperwork required.

  • The company offers loans up to $250,000 issued within a few days.

  • The minimum credit score requirement ranges from 640.

  • Repayment schedule (monthly repayment schedule as opposed to daily or weekly).

  • There are no prepayment penalties, account maintenance fees, or annual fees.

Cons

  • To verify cash flow, you must have online banking or a PayPal account.

  • Personal guarantee is required.

  • The monthly fee structure is complicated.

  • Loans cannot be used to establish fair credit for a firm.

Loan conditions

Underwriting standards vary per lender, but they often include information from an applicant's minimum credit score record as well as other business data that reflect the potential to repay the loan, such as company cash flow and business revenue. Whereas meeting the standards listed below doesn't guarantee approval, they'll assist:

  • To qualify for financing, candidates should have a personal credit score of 640. The lender also examines the company's commercial record but does not disclose the needed business credit score.

  • An application must have been in the company for at least one year to be eligible for a business line of credit. A company checking account must also be established so that cash may be distributed.

  • It does not disclose its yearly revenue minimums for business finance applicants. The lender does say, though, that a company's annual percentage yield might influence the loan limit for which it qualifies.

Funding a loan

Kabbage's loan financing procedure is online and takes around 10 minutes to complete. You'll need to input some personal information as well as essential company information, such as your legal name and address, industry type, and federal tax ID or employee identification number. You must also agree to a heavy draw on your personal and company credit records. Kabbage will approve or reject your application after analyzing the health of your business, or personal credit history using an automated online method.

Reviews

FAQ

What is Kabbage?

Kabbage is a small-business financing platform that accepts borrowers with a FICO score of 640 or higher. Acquired by American Express in 2020, it is recognized for its quick application procedure.

Who owns Kabbage?

Kabbage is an American Express-owned financial technology firm. Rob Frohwein, Kathryn Petralia, and Marc Gorlin are the founding members.

How do you qualify for Kabbage?

To apply for a loan, the applicant must have a decent credit score, and their business should be operational for over a year. If they are applying for a line of credit, the annual revenue should be $50,000 or more.

How much can you borrow from Kabbage?

Kabbage is a financial technology company owned by American Express that offers starting from 500$

Is Kabbage a legitimate company?

Yes, Kabbage is a legit company; the lender has issued over $9 billion in small-business loans since its inception in 2009. It is also recognized by the Better Business Bureau. The company has carried out multiple loans over the years even after the SEC's strict regulation of peer-to-peer lending.

Company documents

Privacy Policy
Terms of use

With the powerful backing of American Express, Kabbage offers a broader set of cash flow management tools to millions of businesses.

© Kabbage

Calculate loan payments in Kabbage

Kabbage calculator will allow you to calculate an approximate payment schedule for the loan

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What to focus on before applying for a loan with Kabbage

To ensure the lender is legitimate, check if it meets the following criteria:

How do you know if a loan company is registered?

The lending company is registered with the US Securities and Exchange Commission (SEC) and has a tax identification number (EIN). Note that tribal lending companies operate under the jurisdiction of tribal laws, and they don't have to register with the SEC. But still, tribes must act under federal consumer protection laws enforced by the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC).

According to the FTC requirement, the lending company is registered in your state, excluding tribal lenders abiding by tribal and federal laws only. That is why tribal lending companies can charge interest rates exceeding your state's maximum.

Finally, the State Attorney General can verify the registration of the lending company if you need additional proof of whether it is legitimate.

If a US lending company scams you, please report to local law enforcement, your state attorney general, CFPB, or FTC.

Finanso® also recommends

Learn the total cost of a loan, including:

It will be best to read a loan agreement carefully before signing it. If any part of the agreement seems incomprehensible, do not hesitate to ask the lender about particulars.

Remember that you don’t have to make an immediate decision when considering getting a loan. However, you must be sure that you are ready to repay following your loan documents. If the lender’s terms and conditions are uncomfortable for you, you are free to search for another proposal, as there are about 780 lending companies in the US.

What’s the difference between Kabbage and a bank?

  1. You need to have a good credit history to qualify for a credit card with a bank. In contrast, even bad credit history debtors can borrow money from US lenders with personal or payday loans. 
  2. Interest rates and annual percentage rate for a loan with an online lending company are significantly higher than with a credit card released by a bank.
  3. Applying for an online loan with a lending company doesn’t require paperwork or even visiting their office. Instead, a borrower can apply entirely online and receive money via direct deposit on the next business day.
  4. The online lending business is high-risk for investors, and their capital is not protected from unfair borrowers.
  5. A loan with legitimate loan companies for bad credit is a simple but expensive form of borrowing to resolve financial hardship.
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