Kabbage

Kabbage is one of the most convenient and fastest lending companies. It would be difficult to find a lender more convenient than Kabbage.

Contents of the Article:

 

  • What is Kabbage?
  • What are the services available in Kabbage?
  • Who are eligible for Kabbage services?
  • What are the terms and fees of Kabbage services?
  • How to apply for Kabbage services?

 

What is Kabbage?

 

The company offers lines of credit through an automated system that can approve lines of up to $200,000 within minutes! Yes, minutes.


Kabbage is a fast-growing company that initially offered lines of credit and payment services. Later on, they also added checking account services provided by Green Dot Bank and recently during the coronavirus pandemic, they are also accepting Payment Protection Program (PPP) loans as the most recent addition to the services they offer.


The speed comes at a price, though. With fees that can reach up to 10% of your borrowing amount each month, this lender provides some of the more expensive loans you’re going to come across.


To sum it all up, Kabbage lines of credit are fast, convenient, and accessible to small businesses, even if you don’t have a perfect credit score. Because Kabbage loans can be expensive, we advise applicants to make sure they fully understand the cost before accepting a financing offer.


What are the services available in Kabbage?

 

Business Lines Of Credit

The lender extends credit to a borrower. The borrower can draw upon that credit at will up to a credit limit. Interest is paid on the amount used.


Payment Services

This suite of services encompasses invoice processing, custom payment URLs, and card processing.


Checking Account

Bank account that allows easy access to your money. You can make purchases by using your debit card, checks, or account information. Checking accounts typically offer low or no interest.


Paycheck Protection Program (PPP) Loans

Lender provides loans to help businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. Borrowers may be eligible for PPP loan forgiveness.

 

Who are eligible for Kabbage services?

 

Here are their main requirements for you to qualify for a loan:


Businesses with such requirements are eligible for Kabbage services

  • Minimum credit score required: N/A
  • Time in business required: 12 months
  • Monthly/annual revenue required: $50,000 per year (or at least $4,200 for the last 3 months)

What are the terms and fees of Kabbage services?

 

These are the terms and fees stated on Kabbage’s website:


  • Borrowing Amount: Up to $250,000
  • Draw Term Length: 6, 12, or 18 months
  • Borrowing Fee: 1.25%-10% of the borrowing amount per month
  • Draw Fee: None
  • Effective APR: 24%-99%


How to apply for Kabbage services?

 

The application process is completed online. Kabbage will ask for information about you and your business. You will also have to give the lender read-only access to your business bank account and any other data channels you use (such as Amazon, PayPal, and QuickBooks). Kabbage uses the information provided to determine your monthly fee and maximum credit line.


Kabbage will perform a hard pull on your credit during the application stage. Although the lender does not state a minimum cutoff, it will use your credit history to help verify your identity and determine risk.


An algorithm decides your rates and fees. It generally only takes a few minutes for the system to decide whether to approve or deny your application. However, if Kabbage has trouble verifying information, the process might take longer. Kabbage might also request additional info to grant you a larger credit line.


Once approved, you can begin requesting funds. You can also request a Kabbage Card free of charge to pay for goods and services right from your credit line.


References:

Small Business Funding Options from Kabbage

Paycheck Protection Program (PPP) loans | Kabbage Servicing (kservicing.com)

Kabbage Loans: 2021 Review & Info For Businesses (merchantmaverick.com)

Kabbage turned to doling out PPP loans to save its lending business (cnbc.com)

Kabbage Archives - Finovate