Each and every day, countless businesses take out loans to help cover their running costs, invest in new tools and equipment, expand into new office spaces, and generally grow as a company. There are many reasons why you might need a business loan, and banks often say no, but the best business lenders out there, like Kabbage, can give your business the funds it needs. This review will take a closer look at how Kabbage works and whether or not it’s the right lender for you.
Established back in 2009 and headquartered in Atlanta, GA, Kabbage is a business lender offering both lines of credit and varying payment services to small and mid-sized businesses. It specializes in lines of credit, offering comfortable and convenient borrowing options for many businesses.
It also stands out for its relaxed application process, reduced borrow qualifications when compared to banks and other lenders, lack of fees, and monthly repayment plans.
Kabbage offers some of the easiest-to-access lines of credit in the business lender world, but its products aren’t available to businesses in certain industries and it does lose some points for failing to offer any kind of long-term financing or other loan types.Back to top ↑
Business Loans Offered By Kabbage
Kabbage specializes in lines of credit:
- Lines Of Credit – With a line of credit, you basically take out a temporary credit account for your business. You can borrow and spend whatever you need while the line of credit is available, and you only need to pay back the money you actually take out and use, up to a maximum credit limit. Interest is charged on all the credit you use.
Here’s all you need to know about how Kabbage business loans work:
- Application – The application process with Kabbage is known for being quite relaxed, but there are still some requirements you’ll need to meet in order to qualify for approval. Your business needs to have been running for at least a year and earning at least $50,000 per year, or a minimum of $4,200 for the previous three months. Unlike other lenders, Kabbage doesn’t reject applicants based on their credit score, but those with good or excellent ratings are even more likely to qualify
- Loans – When you take out a line of credit with Kabbage, the maximum amount you can borrow is $250,000. You can choose a term of 6, 12, or 18 months. Borrowing fees range from 1.25% to 10% of the total borrowing amount per month.
Kabbage has a lot of plus points, and only a few minor drawbacks. If you want an equipment loan or a working capital loan, you’ll have to look elsewhere, as Kabbage only really offers lines of credit. However, if this is what you need, Kabbage stands out as arguably the best credit provider in the business right now. Their application process is easy and relaxed, the customer service is impressive, and Kabbage does a good job of keeping its rates relatively fair and competitive too.Back to top ↑