Kabbage Small Business Loan Review: Lines of Credit Up to $150K

Kabbage is suitable for small businesses seeking quick access to capital without a lengthy application process. It is ideal for cyclical businesses that need funds during periods when business is slow. Startups and small businesses have much to gain from the Kabbage line of credit.

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Min. Credit Score
Min. Credit Score No minimum required
Loan Amount
Loan Amount $1K-$150K
Loan Repayment
Loan Repayment Up to 18 months
Gordon Scott
Written by:Gordon Scott
Chartered Market Technician (CMT)

Our Verdict

Line of credit is the only type of business loan Kabbage offers right now, but they also offer checking accounts, as well as payment services. The major strength of Kabbage is the fact that they have incredibly rapid processing. Not only can you get through the application process in a matter of minutes, but, when you get approved, you can expect to receive the funds quickly. Moreover, Kabbage has no minimum FICO credit score requirements. This means that you can apply for a loan with a low credit score, but keep in mind that there will be a trade-off in terms of loan rates.

Summarized Ratings

This parameter considers loan terms, repayment optionality, and loan limits. For each financing arrangement offered, each of these features was evaluated using the five-point scoring system. Then, the various scores were aggregated and averaged to establish an overall loan features score.

Kabbage gets a 3.0 for Loan Features. This slightly below average score reflects competitive loan terms (up to 18 months), a flexible monthly repayment option, but low loan limits (< $250K).

Fast access to cash
Great for borrowers with low credit
Debit card
Easy application process
Customer service
Low credit scores
PayPal access
High rates
Complicated fee system
No prepay incentive

Kabbage Review Video

Our expert, Gordon Scot reviews and describes Kabbage line of credit in detail.

What is Kabbage?

Kabbage is a FinTech platform based in Atlanta, Georgia, focusing on small businesses. It uses an automated application process to provide loans quickly to qualifying candidates. In 2013, the company began with an office in the UK, and today, it is known as a global disruptor.

Small businesses with no credit history can typically get a response to their loan application within 10 minutes. However, the ease of access might mean higher interest rates and a personal guarantee. Kabbage provides a business line of credit, ranging up to $150,000.

The Kabbage Loan Eligibility Requirements

Before you apply for a small business loan through Kabbage, you would be required to:

  • Identify that you are an American Express business card member
  • Have an American Express account.

If neither of these applies to you, then you need to

  • Have been previously approved for Kabbage funding.

If none of the three options apply to you, you wouldn’t be able to apply for a Kabbage loan right away. Instead, you would have to join the waiting list, and Kabbage would contact you once you meet the eligibility criteria. So, the only way to apply for a line of credit from Kabbage is to have some sort of connection to American Express.

Kabbage business loans

Joining the Waitlist

Joining Kabbage’s waitlist is fairly simple. All you need to do is fill out the required information and specify whether you are interested in payments or funding. In the case of small business loans, you would select the “funding” option.

Additional Requirements


Less than $100,000

More than $100,000

Minimum Credit Score



Minimum Annual Revenue

$50,000 or $4,200 monthly revenue over the last three months

$50,000 or $4,200 monthly revenue over the last three months

Minimum Time In Business

12 months

12 months

Kabbage does perform a hard credit inquiry
because of the American Express on the back end. The hard credit pull might discourage some customers from applying since most customers turn to alternative lending sources hoping to avoid hard credit inquiries that a traditional bank performs.

The Kabbage Loan Application Process

1. Providing Personal and Business Information

When you are applying for a loan on the Kabbage website, the process is easy, as you only have to answer one question at a time. Depending on how you answer, the system might take you through a series of other questions. All in all, the application process is very customized, but all the questions are incredibly straightforward.


2. Linking the Bank Account

At the end of the application, you would need to link your business bank account. This is done for two reasons: once you get approved, the funds will be transferred into your bank account, and regular loan payments will be withdrawn directly from your account as well.

This is often the case with any alternative lending source, as it ensures fast and convenient services while protecting the lending companies themselves. This setup is generally secure, and customers don’t have any problems with this.

    After breaking down the application process, let's explore Kabbage's key parameters in more detail.

Kabbage Loan Features

Kabbage only provides the line of credit. The line of credit extends all the way to $150,000. However, Kabbage also provides a host of analytical features with dashboards and payment processing facilities. You need to sign a personal guarantee, but you do not have to supply any collateral for the line of credit.

Business Line of Credit

As an unsecured loan, business lines of credit provide borrowers with a set limit of funds to draw against as needed. You pay interest only on the open balance and there are no prepayment penalties. Lines of credit provide cash quickly and are typically paid back within a year.

Loan Type

Line of credit

Term Length

6, 12, or 18 months

Repayment Period


Apr Range

24.00% to 99.00%

Min-max Amount

$1,000 to $150,000

Kabbage Loan Interest Rates And Fees

The loan amounts range between $1,000 and $150,000, with the available loan payback periods of 6, 12, and 18 months. Kabbage reports that their annual rates can range either between 6% and 15% or between 24% and 99%. While, in an ideal scenario, you would get a reasonable rate of 6%-15%, most customers shouldn’t expect that. Instead, they would pay a rate anywhere between 24% and 99% annually, should they carry the loan to its full term.

However, it is important to understand that these types of loans are structured specifically to be paid back quickly. When you run a small business, a lot of opportunities and projects come up that allows you to receive profits and pay off the loan quickly. Keep in mind that, if you are not able to do so, you should be prepared to pay very high-interest rates.

Business Lines Of Credit

Loan Type

Business line of credit

Origination Fees


Prepayment Fees


Late Payment Fees

A $10 fee for balances less than $100, a $35 fee on balances between $100 and $5,000, and a $100 fee for balances over $5,000

Maintenance Fees

1.25%-10.00% of your original principal per month

Interest Rate

6% to 15.00%

How Does Kabbage Determine Loan Amount?

Firstly, during the application stage, the representatives at Kabbage perform a hard pull on your credit. The lenders usually never state a minimum cutoff, but they will examine your credit history to determine the risk and verify your identity. Kabbage has an algorithm that decides your fees and rates.

So, it will probably only take a few minutes for Kabbage’s system to deny or approve your application. However, this process can take longer if the system faces issues with verifying your information. As mentioned earlier, Kabbage might also ask for additional information to offer you a more significant credit line. Kabbage will examine your transaction volume, monthly revenue, and credit score to determine whether you qualify for a loan and how much should be sanctioned to you. It also considers the loan term you’re applying for.

So, your chances of approval also depend on whether the term lasts for 6, 12, or 18 months. 6-month loans are the most common, and the rates vary depending on the month. If approved, you can request financing and a Kabbage card to pay for services and goods, free of charge, directly from your credit line.

Kabbage Customer Support

  • Help Center: You can use the Kabbage help center at any time to find answers to your questions. It contains a wealth of information about applying for funding, making repayments, funding fees, and more.
  • Phone & Email Support: If you’d like to speak to a customer service representative, you can reach out to Kabbage directly via phone at 888-986-8263 on Mondays through Fridays from 8 am to 9 pm EST. You may also contact the lender via email at

There are mixed reviews about Kabbage customer service. “I’ve sent multiple emails to their customer support team and received no response. I called into their 800 number and I'm sitting here at minute 23 with no response,” said one customer.

While many others complain about the long response times, some customers actually praise the Kabbage customer service experience. “This was by far the easiest way to secure needed funds I have experienced. I am pleased with the customer service,” explained another customer.

Kabbage Loan Reviews - What People Say Online

Most customer reviews highlight Kabbage’s ease of use, flexible access, and helpful service team. However, if you take a closer look at the customer service ratings on TrustPilot, and Merchant Maverick, you would notice a few interesting things.

Understanding Review Discrepancies

Kabbage has great reviews based on automated invitations that the company sends out to its customers. Specifically, 82% of these come back as “excellent,” and only a few - otherwise.

Kabbage reviews

However, the picture is completely different with organic reviews, when a customer took the trouble to submit the review on their own. Among organic reviews, 93% of customers rate their Kabbage experience as “bad.”

kabbage reviews

While this does create a huge disparity with reviews from automated invitations, it is important to note that organic reviews are typically driven by people who wish to complain. As such, you can expect more negative ratings rather than positive ones.

On the other hand, automated invitations go out to everyone, including people who might not have bothered to provide feedback otherwise.

On average, Kabbage receives a lot of positive reviews, but more negative ones. This is closely related to the fact that Kabbage was acquired by American Express. The transition wasn’t smooth, creating some difficulties related to moving the funds in customers’ checking accounts. As such, most of the negative feedback is related to Kabbage’s banking side of the business, and not their small business loan services.

Trustpilot Rating

It’s important to note that Kabbage is rated 307 out of 324 of the financial companies in the Financial Consultant category of TrustPilot. It is also rated 200 out of 207 best companies within the category of Non-Bank Financial Service.

While these numbers aren’t great, it is important to always use your own judgment when evaluating alternative lending sources. Kabbage is still in the process of gaining momentum, and they might offer just the right solution for you and your small business.

Kabbage Perks and Bonuses

If you’re a new Kabbage customer that applies for and is approved for a line of credit between February 14th and April 29th, you can lock in a $150 incentive offer. Once you verify your bank account, Kabbage will send the funds to you within three to five business days.
Kabbage states that it will work with you in times of hardship to determine a solution. The lender recommends you contact them right away if you find yourself struggling to repay your loan.

The Kabbage website is professional and transparent. It outlines the benefits of its business loans and offers a “Get Started” button that prompts you to create an account so you can apply for funding. In addition, the website explains how its fee structure works and features a list of frequently asked questions.
There are some BBB complaints that allege Kabbage does use deceptive sales practices. They also reveal that the lender does charge hidden fees and changes loan agreements without warning customers.

When you commit to a Kabbage loan, you automatically enroll in Autopay so the lender can withdraw your repayment each month on your due date. This can make paying back your loan convenient.
With the Kabbage app, you easily apply for funds and get approved for up to $100,000 in minutes. You may also use the app to withdraw the amount of money you need and keep tabs on your account while you’re on the go.

Final Thoughts

Kabbage line of credit works best for stable businesses who need quick funding but are also able to pay it back fast. So, if you are the kind of company that has big projects and who gets big revenues from them, you can apply for a loan to cover the expenses needed to complete the project. Once the project revenue comes in, you will be able to pay back the loan quickly without incurring incredibly high borrowing costs.

Remember that Kabbage’s interest rates are too high if you are planning to get a loan and pay it off slowly with regular payments. On the other hand, if you can manage the cash flow quickly, this could present a great lending source.

Frequently Asked Questions (FAQ)

Are there any hidden charges?
Kabbage has something of a unique business model, but it is 100% transparent. You pay back the principal and the interest on the principal, with higher rates of interest during the start of the loan. There are no additional fees or charges as it is a completely automated process.
Is my data safe when I use Kabbage?
Kabbage only has ‘read-only’ access to your bank account and software accounts such as PayPal and Quickbooks. They cannot withdraw or deposit funds. All data sent to Kabbage uses 128-bit encryption. Lending institutions are subject to strict regulations when it comes to data management
How long will it take for money to get into my account?
The review process is very quick (often within 10 minutes). The line of credit can be made available to you within 48 hours in many instances. You can use up to the limit of your line of credit once you pay it back. If the line of credit is above $200,000, it will be subject to a manual review, which will slow down the process..
Is Kabbage good for business?
Kabbage is a good option if you’re a business with fair or poor credit and would like quick access to working capital. If you’re having trouble qualifying for financing elsewhere, it’s certainly worth considering. Just keep in mind that the lender only offers lines of credit so you won’t able to pursue term loans, invoice financing, or other types of business loans.
Is it hard to get a Kabbage loan?
It’s fairly easy to obtain funding from Kabbage because the lender is flexible. You don’t need perfect credit and can get approved if you’ve been in business for at least one year with an annual revenue of $50,000 or more. Kabbage should be on your radar if you’re struggling to secure a business loan with other lenders.
What credit score do you need for Kabbage?
Kabbage extends loans to borrowers with a FICO score of 640 or higher. Despite this minimum credit requirement, the lender will also consider the number of years you’ve been in business and your average monthly revenue to calculate your credit limit and fees.
Does Kabbage do a hard credit check?
Yes, Kabbage will perform a hard pull on your personal and business credit scores during the application process. Keep in mind that this might cause your scores to dip temporarily. As long as you repay your loan on time and in full, your credit score should go back up.

About the Author

Gordon Scott

Chartered Market Technician (CMT)

Gordon Scott is an author, trading instructor, trading coach and curriculum developer for financial education. He served as the managing director for the CMT Association from 2013 to 2018, overseeing the development and production of the CMT exams and their curriculum.

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