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2018 Reviews of Kabbage.com

One question we hear a lot –  Is Kabbage legit? We know it’s easy to be skeptical about a new company with a new product; it’s difficult to share private info about yourself and your business. Signing up for working capital or a small business loan can be especially scary because you fear the fine print may be hiding something. That’s why we wanted to be clear about our services – so you can feel safe and secure when using Kabbage

Kabbage prides itself on leveraging business activity data created by businesses themselves to determine funding needs. Our mission is to provide deserving small businesses with capital and we totally get it that credit scores don’t tell nearly the whole story. At Kabbage, we use data from your sales channels, such as eBay and Etsy, your social media channels, such as Facebook and Twitter, your UPS shipping history, your QuickBooks data, and more. The more information you add, the more we can fund you in a comprehensive manner. With some immodesty, we actually think the Kabbage funding could signal the demise of the credit score.

   The Kabbage Process  vs  Other Online Lenders 

Kabbage Other Online Lenders
Simple process with no paperwork or digging up financial statements. Require additional financial information after initial online application.
Complete the application in minutes* from your computer or phone. 2-3 days
 Once approved, access your line of credit** immediately. 3 days to 2 weeks
Simple, monthly payment when you use funds. Only pay for what you take.  Interest charges, prepayment penalties and origination fees may apply.

You can check out our How It Works section for more information on qualifying, taking funds and making payments.

How Kabbage Loans Work

It’s hard to get approved for Kabbage.

False! We specialize in democratizing access to working capital. Our super fast online system looks at your real business data — not just your credit score — to make an informed decision and help small businesses grow everywhere.

Applying for a Kabbage line of credit is quick and simple. It takes only minutes to apply and eliminates time spent typically waiting in lines or filling out stacks of paperwork. Our application process is completed online or via mobile at no cost to you. Apply by linking revenue-generating accounts like a checking account or PayPal to give us a complete picture of your business’s latest performance and to ensure we provide you with the most appropriate amount of funding.

Our underwriting process is fully automated. By connecting your accounts, you allow us to review your business performance in a fraction of the time it takes compared to traditional lending channels. We know you’re more than just your credit score, so we take a more holistic look at the health of your small business. The more transactional accounts you add, the better we can get a well-rounded profile of your small business.

Once Kabbage reviews your full application, we give you a decision right away. If approved, you can start accessing funds quickly.

What do I do now that I’m funded by Kabbage?

Once you’re approved for a line of credit with Kabbage, the funds are there for you when you need them. You choose how much to withdraw, when and how often. You only pay the amount you borrow.

Kabbage will automatically draft your loan payment once a month on your set due date. You’ll review your payment schedule before you withdraw funds so that you have a clear idea of your upcoming payment amounts and due dates.

Kabbage charges a lot of money in fees.

The Kabbage business loan offers small businesses short-term capital solutions for your business needs and a fast return on your investment!

One question all small business owners ask before taking out a loan is, “What are the interest fees?”. After all, they want to ensure their ROI on the loan is worth it. Kabbage charges monthly fees which vary depending upon the small business’s performance. Our business loans do not incur interest, but rather loan charges. Multiple factors can account for the monthly fee rate. Kabbage fee rates range between 1.5% and 10% of the principal loan amount when the business loan is taken and 30 days later if the entire loan amount is not satisfied. At any time, if the full balance is transferred back to Kabbage early, you save on all future loan charges. It costs you nothing to keep the account open if you are not drawing on the funds, but they are available if you ever need access to them.

Of course, you also need to keep an eye on the ROI of your business loan. For example, if you re-sell items for twice what you paid for them, you could look at fees merely as the cost of doing business.

Also, unlike almost every other provider of capital, Kabbage does not charge any extra fees for early repayment.

How does Kabbage’s fee structure work?

Each month, you repay Kabbage a percentage of what they borrowed plus a fee. We offer two terms for loans: . This is a great option for short-term investments that will provide a quick return.

For a 6-month line of credit, you’ll pay a fee of 1.5% to 10% of the total amount you borrow for the first two months. After those two months, the fee is lowered to 1% for the remaining four months.

For a 12-month line of credit, you’ll pay 1.5% to 10% of the total amount you borrow for the first six months, and 1% for the remaining six months.

The percent of the original loan amount owed for the first two to six months is chosen based on the terms you receive at qualification.

Kabbage charges high late payments. 

Making late payments or possibly defaulting on loans can be stressful. If you don’t happen to have enough money in your primary checking account to meet your minimum monthly payment, you can contact us at 888-986-8263 before your due date. We’ll work with you as much as possible to make arrangements on your account so you can stay in good standing.

Kabbage won’t accept my bank.

If your bank account shows up as “unauthorized”, don’t fret. This doesn’t mean your account is less safe or secure. It’s possible Kabbage lost connection with your bank account due to security changes or bank updates. While this won’t affect your ability to use the account to take funds or make repayments, it can affect your available line if left uncorrected for too long. If you see your account as being “unauthorized”, click the alert to reauthorize your bank account or give us a call at 888-986-8263 if you’re having troubles reconnecting your bank and we’ll be happy to help you get it sorted out.

Customers don’t like Kabbage.

We pride ourselves in our customer service, the speed of application and ease of use, all of which customers laud in their reviews. At Kabbage, we care deeply about our customers. We want to see your small business succeed, and we love being a part of that success. We have tens of thousands of happy customers; you can read some of their thoughts in our Kabbage reviews or see our A+ Kabbage BBB.

Kabbage is a scam.

This myth is always hard for us to stomach. We know that our service is completely legitimate and created to help you, the small business owner. We just want to ensure that you know that, too.

One of the easiest ways to confirm any company is legitimate is to check out references and look for security verification. At the bottom of all Kabbage site pages are security verifications by both TRUSTe and VeriSign.

But don’t just rely on us; check out the tens of articles written by sources such as The Huffington Post, TechCrunch, and The White House, all praising us for our business. We have also received awards such as “Most Innovative Company” by sources such as Fast Company and VentureBeat. You can read some of the most recent articles about us on our Press page.

Additionally, as channels are added to your Kabbage accounts, we never see, store, or have access to your passwords to your marketplaces or payment processors. We simply redirect you to their sites to log in and confirm ownership of your accounts.

Kabbage isn’t secure.

Our customers’ safety is our main priority. We have an A+ rating with the Better Business Bureau. We can never see or store your login information, and we have no access to save or change your bank account data. Kabbage customers have securely connected more than 1 million data sources to be automatically reviewed.  For more information, review the Security of Information section of our Privacy Policy.

What extra steps can I take to feel safe?

In order to ensure you are always on the legitimate Kabbage site, it is always a good idea to check the website you are on for security verification. As mentioned above, both TRUSTe and VeriSign list Kabbage as secure. Also look for the Kabbage logo in any Kabbage-esque pop-up ads and the Kabbage URL when you are on or headed to a “Kabbage” site.

Want to read more Kabbage FAQ’s, visit our help center.  If you are interested in learning more about how a line of credit from Kabbage can support your small business, take a look at the links below.

*Credit lines are subject to periodic review and change, including line reductions, line increases, or line eliminations. This is not a revolving account. Individual requests for capital are separate installment loans. All loans are subject to credit approval.

**Kabbage can approve you in minutes when we are able to automatically obtain your business data and verify your bank account. In some situations, errors may occur during the sign-up process, or we may need to send micro-deposits to confirm your bank account for security purposes. If this is the case, it may take up to several days to provide you access to funding.

This post was updated on May 16, 2018.

Want to learn more about the Kabbage process? Check out these helpful links:

Kabbage Team

Kabbage is here not only to provide access to the small business funding you need, but to also help you grow your business through free marketing tips, webinars, tools and more. Is there something you'd like us to cover or want to get your small business featured on our blog? Send us a note at content@kabbage.com.