Kabbage business loans are different from personal loans because they’re designed to help entrepreneurs make investments. More than 80,000 businesses have taken advantage of working capital through Kabbage to keep their businesses growing and thriving.
Reviewing loans based on APR is one method of comparison, but it’s important to also take into account the purpose of loans and the returns they provide.
Kabbage customers often use their lines of credit to make investments in their businesses. For instance, if a customer purchases equipment such as a vehicle, this asset can provide a profitable return instead of simply depreciating.
"My business invested in new workstations which resulted in a $1,709 profit due to increased productivity."
Typically, when a consumer takes out a loan for personal use, the purchase is not intended as an investment. In the example below, a personal loan for a vehicle decreases in value over time, adding to the overall cost of the loan.
"A year after using a personal loan to purchase a delivery truck for $5,000, I sold it for $3,500 due to depreciation."