Kabbage is a fast business lender known for their speed and the size of their loans. You can get the funding you need very fast with Kabbage business loans. They are most well known for their popular line of credit, which comes with a few convenient options and possibly very large credit pools.
If you’re looking for the best rates possible, Kabbage won’t be the lender you’re looking for. But if you need and value speed, you will love Kabbage. Their loans are also somewhat easy to qualify for, making them a fast and accessible option if you need fast business financing.
Special Qualities & Features of Kabbage Business Loans
Speed
In some cases, you can access Kabbage business loans in less than one full day. Their online application process is easy to complete quickly. It should only take about 10 minutes to fill the application out. After that, you will hear back from them very quickly. If you accept the offer they send you, you can start drawing funds right away.
Availability
While it’s not the easiest lender to get a loan from, Kabbage serves customers in a wide range of financial situations. If you have trouble qualifying for business loans elsewhere, there is still a strong chance that Kabbage will give you the funding you need.
Transparency
Kabbage has less negative feedback than similar lenders, and there appears to be one main reason for that. There are just less surprises when you use Kabbage. The company posts their rates and calculation processes for both of their loans on their site. They also let you know what you’ll have to pay during the application process.
Kabbage business loans have no origination fees or prepayment penalties. You can always expect a simple and honest process from them. So long as you note the rates they offer you, you won’t be surprised by anything.
Pricing & Terms of Kabbage Business Loans
Kabbage offers two business financing products. They offer both a line of credit and a term loan, each of which come with their own rates.
Line Of Credit
You can get a line of credit of up to $250,000 from Kabbage. You can then choose a term of 6, 12, or 18 months. The APRs on the Kabbage line of credit are higher than the rates on their term loan.
A Kabbage line of credit carries APRs that start higher than most similar products. APRs start at just over 20%, but can go up to over 80%. You pay them through a monthly fee rate that ranges from 1.5%-10% of the line’s sum. You also have to pay other fees, including a fee of 1% of principal after the first two months.
The pricing on Kabbage’s line of credit is confusing, but fortunately the company has a very detailed rate calculator on its site. Kabbage doesn’t state an APR because their fees are not stated the same way other lenders’ are. However, the rates you’re charged by Kabbage are quite straightforward, as there are no hidden fees and surprises. You can also save on their line of credit by repaying early.
Term Loan
A Kabbage term loan is priced similarly to the company’s line of credit. You have to pay similar upfront fees, and the rates are a bit lower than the rates on their line of credit.
Kabbage’s short term loan isn’t as popular as its line of credit, which also has a shorter term than most business lines of credit. Drawing funds from the Kabbage line of credit is much like taking a short term loan. So, you can use their line of credit if you are financing one large project or a series of smaller expenses.
Do I Qualify for Kabbage Business Loans?
Kabbage is one of the easier business lenders to qualify for. The primary qualification you need to meet is an annual revenue of $50,000, or monthly revenue of $4,200 for the last three months.
You need to have been in business for at least three months to qualify for Kabbage business loans. As stated, if you’ve only been in business for three months, you must have made a revenue of at least $4,200 for each month you’ve been in business.
Kabbage doesn’t state a minimum credit score requirement. However, they are known to start rejecting potential borrowers with scores below 560. If your credit score is below 540, they will very likely reject you.
Factors To Keep In Mind
Paying Back Early
With Kabbage, paying back early is always a good thing. Unlike many business lenders that cater to borrowers with low credit, Kabbage business loans don’t carry prepayment fees. Paying your loans back early can end up saving you money.
Potentially High Costs
Kabbage business loans are far from the cheapest option you will find. The company’s popularity stems more from their transparency and fast service than it does from price. If you aren’t careful, you will face serious cash flow problems with a Kabbage business loan.
The Last Word on Kabbage Business Loans
Kabbage is a highly accredited and well-regarded business lender. The company doesn’t offer great rates, but it offers transparency and straightforward service that has made it popular on the alternative lending marketplace.
If you have a high credit score and a lot of time on your hands, Kabbage won’t be the best option you will find. However, if your credit score is low, or if you just need funds very fast, you can expect good service from Kabbage.
