Kabbage Review

Kabbage Review [Loans & Lines Of Credit 2022]

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Kabbage Review

Kabbage was set up in 2009 as an online lender and provides lines of credit and payment services to borrowers. Kabbage has an automated application processing system that minimizes human intervention to speed up the process and make it more transparent and efficient. The service provided by Kabbage is therefore very fast and convenient, however, this convenience comes at a price as Kabbage is positioned at the more expensive end of the market.

Onto our Kabbage review!

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Kabbage Reviews

Services Offered

Lines of Credit

Kabbage offers simple revolving lines of credit where users can borrow money from their line of credit whenever they want, and once paid back, the line is replenished and can be used again. 

Payment Services

Kabbage offers payment service solutions that allow clients to accept card payments either through professional invoices or through a custom pay link.

PPP Loans

Kabbage provides small businesses with an opportunity to apply for PPP loans through SBA, using their simple online application.

Kabbage Insights

Kabbage Insights allows users to sync their business accounts with the Kabbage platform. The relevant data is analyzed by Kabbage and then presented to the user as a financial analysis with deep insights allowing the business owner to understand the performance of the business on a deeper level. This service is ideal for small business owners who are not up to date with their financial analysis.

Kabbage Eligibility Requirements

  • Time in business: 1 year.
  • Business Revenue: $50,000 annually or $4200 per month.
  • Personal Credit Score: Not applicable.

Kabbage does not ask for a minimum credit score which is great news for borrowers who have bad credit but still meet the minimum revenue requirements.

RELATED: Looking For A Business Line Of Credit?

Kabbage Rates and Terms

Borrowing Limit. Up to $250,000.
Term Length. 6 months, 12 months, 18 months.
Borrowing Fee. 1.25% – 10% of the borrowing amount per month.
Draw Fee. Not Applicable.
Effective APR. Estimated at 24% – 99%.

Kabbage has a monthly repayment structure which makes it a better choice compared to other lenders that have weekly or sometimes daily repayment terms. The repayment is structured in such a manner that the higher the borrowing period, the lower the monthly repayment will be. For instance, loans with a 6-month term limit carry 1/6th monthly repayment of principal, whereas loans with a 12-month term limit carry 1/12th monthly payments, and so on. 

Kabbage does not charge an early payment penalty. Their loans are front-loaded which means the bulk of the fee, or interest rate, is charged early on leaving no incentive for the borrower to pay the loan back early. The first of the term period usually carries a fee rate between 1.25% and 10% which again, creates no incentive for early repayment.

Kabbage has a loan calculator that the borrowers can use to get a rough idea of the rates that they may be offered before applying for a loan. There are no additional fees apart from the rate charged on the loans.

Kabbage Application Process

The Kabbage process is completely automated and uses algorithms to gauge the eligibility of applicants, which allows the system to be fast and efficient. Applicants will be required to submit information about their business including read-only access to the bank accounts and other channels like PayPal and Quickbooks.

This access is used by Kabbage to collect the appropriate data and will be used to carry out a hard credit check which will show up on the applicant’s credit score. 

Once Kabbage has all the data they need, the automated system will come up with terms and rates based on the risk associated with the applicant. Under some instances, Kabbage may take longer than usual and may require additional data to assess eligibility or maximum lending limit. 

Once applicants are approved, funds are transferred to the borrower’s account without any hassle. Kabbage also offers a “Kabbage Card” that allows borrowers to pay using the card directly from their line of credit.

Kabbage Customer Service

Kabbage can be contacted through:

  • Email
  • Phone
  • Social media (Facebook and Twitter)

Kabbage phone number: 888-986-8263

Kabbage Reviews

Kabbage Reviews & Complaints

Over the last decade, Kabbage has gathered both negative and positive reviews. The negative reviews however have more to do with the high costs and some technical issues users have encountered in the application process. 

The most frequent complaint has been the rejection rate. Some applicants that met the minimum criteria say they were rejected by the online lender. This is quite common because Kabbage doesn’t just look at the minimum requirements, they also assess the financial ability to repay the loans. Kabbage may need to elaborate on its eligibility criteria so that applicants can enter the process knowing whether they stand a chance of being approved. 

Some borrowers have complained that Kabbage suddenly cut off the borrowing limit on their lines of credit. This tends to happen when Kabbage feels the borrower’s financials are worsening. This is a safety feature that prevents the borrower from borrowing more than they can repay.

Apart from this the most frequent complaint has been about the high rates. This is a Kabbage policy and how the lender has differentiated itself from the rest of the market. 

The positive reviews for Kabbage loans highlight the rapid application process and the convenience with which applicants can borrow.  

Kabbage Logo

Kabbage Pros and Cons

Here are some of the Kabbage pros and cons you should consider when looking for a business loan or line of credit:


  • Convenient
  • Fast application process
  • Good customer service


  • High rates
  • Eligibility criteria is a bit vague
  • Line of credit may be cut off if the financials of the business worsen
  • Hard credit check performed

Frequently Asked Questions (Faq)

We answer some of the most commonly asked questions about Kabbage loans and other services.

Is Kabbage legit?

Kabbage is a legitimate company offering loans and lines of credit to businesses across the country.

Where is Kabbage located?

Kabbage is based in Atlanta, Georgia.

Are Kabbage loans personally guaranteed?

When taking out a Kabbage loan you will not be required to put up any real estate or personal assets.

How does Kabbage determine loan amount?

Kabbage considers a few things when determining how much to lend a business, including time in business, and business revenue ($50,000 annually or $4200 per month.) Thankfully, Kabbage does not consider credit scores.

Does Kabbage do a hard credit check?

Yes, Kabbage will do a hard credit pull which can affect your credit score.

Review Of Kabbage: Objective Opinion

Kabbage offers loans and lines of credit with high rates to businesses with good financials. If your business is stable and you are looking for a convenient way to obtain an online loan with transparent terms and conditions without too much hassle then Kabbage may be the right option for your business. Businesses that are struggling, however, may be better off looking for another lender.

Small Business Resources At Kabbage

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