Pros
- Businesses can qualify on the strength of their financial stability and online presence instead of requiring a high credit score for loan approval.
- Borrowers don’t need a minimum credit score.
- Accepts interlinking with accounts like PayPal, Xero, QuickBooks, Amazon, Wells Fargo, eBay, Etsy, and Chase, to name a few.
- The higher the number of accounts you connect with Kabbage, the higher the loan amounts you qualify for.
- Existing PayPal users can get access to funding quickly if they remit payments using PayPal transfers.
- Kabbage is a secure and fast way to get funding for emergency expenses.
- Startups needing small sums of as low as $2,000 can apply to Kabbage.
- Repayment is made once a month.
Cons
- High APRs that can range from 20% to 80%, which is much higher than other online sources of funding that may charge you between 8% to 10%.
- Kabbage charges a monthly fee rate ranging from 1.5% to 10% of the line amount in place of interest rates. For instance, borrowing $10,000 for six months with an applicable fee of 10% will require a repayment of $1,666.67 + $1,000 in the first two months and $1,666.67 + $200 in the remaining four months.
- No benefits are awarded for repaying the loan amount before the term ends, but there are no prepayment penalties.
- The maximum limit on a Line of Credit is $150,000, which may not suit businesses needing higher funding.
- Loan terms range from 6, 12, and 18 months, which may not be ideal for borrowers needing long-term loans.
- If you don’t use online banking services or accounting software, qualifying for the loan may not be possible.
Qualifying Criteria for Kabbage Line of Credit
Getting a loan for your small business at Kabbage is possibly not just highly convenient, but also easy to qualify for. The rules are very basic – your business should be operational for one year with annual revenue of $50,000. Most importantly, you won’t be asked for your credit score. Kabbage offers a line of credit up to $100,000 after evaluating your revenue and cash flow. It’s just that simple!
If you need higher limits on your line of credit, Kabbage evaluates your banking history, social media and online presence, and vendor accounts. For instance, to qualify for a higher line of credit of up to $150,000, you’ll need to have been in business for at least three years.
As for access to funding, borrowers can get the funds deposited directly via Paypal, but if they need deposits in their bank account, the processing time could be anywhere from one to three business days. While you can expect to pay a higher APR than most other loan products, Kabbage is a great option if you don’t qualify for other sources of funds.
How to Apply for the Kabbage Line of Credit
You can apply for the Kabbage Line of Credit by visiting the company’s secure website. Its interactive features help you complete the application process in less than 10 minutes. Here’s how:
- Log onto the Kabbage website.
- You’ll add information like the legal name of the business, address, and industry category. Kabbage will also require your business’s Federal Tax ID or employee identification number.
- Click on the “Instant Business Review” button, and you will be directed to connect your online accounts. Wherever applicable, you’ll add information on your bank account, accounting and bookkeeping, payment processing accounts, and vendor accounts.
- You’ll add personal details, such as your name, contact information, address, and Social Security Number, for identification.
- The evaluation process is entirely automated, and approval is typically given within a short time.
- Although your credit rating is not a qualifying criterion, Kabbage requires you to consent to a hard inquiry into your credit score.
- Providing your social media accounts is beneficial if you’re applying for a higher limit on your line of credit. Even if you don’t get approved for the loan at present, Kabbage may accept your request and provide funding at a later date. You won’t need to put in a fresh application again.
Kabbage Application Process
Kabbage and Funding Circle Compared
Loan Product |
Kabbage |
Funding Circle |
| APR | 20% to 80% | 11.29% to 30.12% |
| Loan Type | Line of Credit Only | Term Loans Only |
| Maximum Loan Amount | $2000 to $150,000 | $5,000 to $500,000 |
| Cost | Monthly fee | Interest rates between 8% to 33% |
| Loan Terms | 6, 12, and 18 months | 3 months to 120 months |
| Repayment | Each month | Each month |
| Minimum Qualifying Revenue | $50,000 per year | $150,000 per year |
| Minimum Time in Operation | One year | Two years |
| Business Type | Any | Incorporated or LLC |
| Minimum Qualifying Credit Score | None | 620 with a personal guarantee |
| Loan Approval Time | Up to three business days | Up to 10 days |
Kabbage Small Business Loans
Apply NowKabbage and OnDeck Compared
Loan Product |
Kabbage |
OnDeck |
| APR | 20% to 80% | 35% to 54.23% |
| Loan Type | Line of Credit | Line of Credit and Small Business Term Loans |
| Maximum Loan Amount | $2,000 to $150,000 | Up to $100,000 for Lines of Credit and Up to $500,000 for Term Loans |
| Minimum Time in Operation | One year | One year |
| Minimum Qualifying Revenue | $50,000 per year | $100,000 per year |
| Minimum Credit Score | None | 500 personal score |
| Loan Terms | 6, 12, and 18 months | 3 to 18 months |
| Repayment | Each month | Every day or every week |
| Prepayment Benefits | None, aside from savings on the fee | Lower fees and interest rates on subsequent loans |
Kabbage Small Business Loans
Apply NowKabbage and PayPal Working Capital Compared
Loan Product | Kabbage | PayPal Working Capital |
APR | 20% to 80% | 15% to 30% |
Maximum Loan Amount | $2,000 to $150,000 | Up to 18% of your PP sales over the last 12 months or $97,000 |
Qualifying Criteria | Minimum revenues of $50,000 per year | PayPal business account or premier account for the last three months, minimum revenues of $15,000 to $20,000 per year |
Repayment | Each month | Daily or on days when you receive payments from sales |
Suitability | For any businesses | Primarily for businesses who use their PayPal account for accepting most payments |
Cost | Monthly fee | Interest rate from 15% to 30% |
Loan Terms | 6, 12, and 18 months | Up to 18 months |
Kabbage Small Business Loans
Apply NowKabbage and Fundbox Compared
Loan Product |
Kabbage |
Fundbox |
| APR | 20% to 80% | 13% to 60% |
| Minimum Time In Operation | One year | 2 to 3 months depending on the product category |
| Minimum Qualifying Revenue | $50,000 per year | $25,000 per year for a line of credit, invoice financing also available |
| Minimum Credit Score | None | None |
| Minimum Loan Amount | $2,000 to $150,000 | $100 to $100,000 |
| Loan Terms | 6, 12, and 18 months | 12 to 24 weeks |
| Repayment | Each month | Each week |
| Loan Approval Times | Instant or within one to three business days | One to three business days |
| Additional Qualifying Criteria | Access to business bank account and accounting software | No bankruptcies in the last 24 months, access to business bank account and accounting software |