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Kabbage - Small Business Loans

Product Holder (106 Reviews)
Application Process
Customer Service
3.5283 5

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  • Most Helpful Positive Review

    A SUPER simple solution to a quick loan.
    Helpful to 10 out of 11 people

    First of all I would like to say that the Kabbage process is the easiest and best experience I have ever had applying for a business loan. Usually the process is painfully slow and retoricall questions with an assanation of your past and credit history. (yes I know it's a loan I should be asked certain questions) The point is this Kabbage has made the entire process simple and easy.

    I highly reccomend this product and will be using it again in the future.

    Read More

    Most Helpful Critical Review

    Very dissapointed
    Helpful to 11 out of 11 people

    I am a small business owner with an Etsy shop. I applied for Kabbage, was approved and took out a $500 cash advance. I was fully aware of my payment schedule and fees and it helped me get the supplies I needed to grow a little more. This is where I have the problem though. I paid off my Advance EARLY and then was immediatly told "You are not currently eligible to take a Kabbage advance". It has been months and I still can't get another advance even though I established a good credit history with them by paying off early and my sales have been steady. I called and spoke to a representative and they could not give me any answers as to why my account was shut down. I really thought this was a good way for me to grow my business little by little, guess I was wrong. =(

    Read More

    Reviews (106)

    Cost an arm and leg!
    Helpful to 2 out of 2 people

    My business: 

    Currently I have both Paypal working capital and Kabbage. Paypal working captial is by far AMAZING! We had to find a solution and needed quick cash to take the jump of expanding our business from our home into a large warehouse with heavy equipment. We needed to first invest in the equipment; which we were able to but the thing that snagged us was we needed two months of security deposit in order to move into this warehouse.

    We have been using paypal working capital for over a year.. which has been fantastic. We took out our 3rd paypal working capital around May for $8500 and the flat one time fee is $703 with a total repayment of $9,203. For paypal repayment is based on %15 taken off the top of each sale that goes through paypal. We have been able to pay off each paypal working capital within a timeframe of 5-6 months. This has been great for us because we used the money soley on beefing up our inventory which had a great ROI (return in investment).

    For the time crunch we were in for moving into the warehouse... our only last resort for quick cash was Kabbage; which the process to get approved was 3 weeks for us. They required so much additional information. We finally got approved for $26,000 and just took out what we needed for the two months of security deposit for our warehouse move in. This was extremely risky because 1) there is no ROI and 2) since there was no ROI for what we needed for the funds... this resulted in having to come of with a large sum of money to pay back the first month; which was $1,200 first payment.

    Not only that.. the fee to take $5000 was insane!

    Here is a comparison b/w paypal and kabbage working capital for us:


    Loan - $8,500

    One time fee - $703

    Total repayment amount - $9,203

    Repayment time frame - no set time. Repayment is based on extracting %10 - %20 of sales driven through paypal (which you can set the % amount taken from each sale) 

    So that means if you have a bad month of sales... then no worries.. you will not be penalized. If you have a great month of sales... awesome the repayment of the working capital will be faster.


    Loan - $8,500

    One time fee - $1,785

    Total repayment amount - $10,285

    Repayment time frame: 

    1 month - $2,139.17

    2 month - $2,139.17

    3rd month - $1,501.67

    4th month - $1,501.67

    5th month - $1,501.67

    6th month - $1,501.66

    So, that means... if you have a bad sales month... you are screwed! 

    Overall... I would not recommend kabbage unless you are in desperate need and expect to have an ROI! Because honestly... it COST AN ARM AND LEG!

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    Kabbage - Your Worst Nightmare
    Helpful to 4 out of 4 people

    Kabbage Cash is a mixed blessing. I am an actual customer and not a paid endorsement so I speak from personal experience. 

    On the positive side, when you are small and can't obtain a line of credit from your bank, they are there. Sure the calculated effective interest is high, but the idea is to have that cash to make a large volume purchase to offset their fees. 

    On the negative side, if for any reason you can't make your payment, even if you call them ahead of time and work with them - they become your worst nightmare.Temproary unexpected sales slump? Severe illness? Catastrophic act of God such as weather related issues? Too bad - they will empty your PayPal or similar account into the red, draft an eCheck against your bank account and monitor your sales so as to do a full sweep of your PayPal account within the hour. Your income will be cut off, your accounts will be overdrawn. 

    Oh, wait, your morgage payment is due? You utilities are due? Your car payment is due? You are ill and need to pay to see a doctor and purchase meds that your insurance does not cover? TOO BAD! Kabbage comes first. They will bleed your accounts dry. Don't say it can't happen to you, or it's the persons fault for borrowing too much. it CAN happen to YOU. 

    Do yourself a favor and resist the temptation of using this service. They come far too close to the definition of pay day loans and other preditory lending by slick advertizing and adjusting their policies accordingly. Strongly recommended to avoid!

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    well said- PERFECT pay history with them for well over a year - called a week ahead of time to work out a deferral of something because my $ want going to make it in time - they said "sure we will give you and extension - 3 days!!!" and that was over the July 4th holiday mind you - then bam - sucked Paypal account dry - over drafted bank account and may just may have basically put my 5 year old small business 6ft under - completely cut off our cash flow - avoid at all cost - lesson learned :(

    mbaxter's reply was:    

    Kabbage - lifesaver and game-changer

    When I needed capital based on my online selling experience Kabbage was there to help. While traditional lenders don't yet fully understand the needs of online sellers Kabbage has made an effort to specialize in this area. Not sure what I would do without Kabbage!

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    Kabbage Can/Will be Your Worst Nightmare
    Helpful to 9 out of 9 people

    As a small business owner who needed a little capital to get ahead, we decided to partner with Kabbage when they were first coming out into the light as a great loan company. This was a few years ago. Back at that time, Kabbage seemed legit even though we were well aware of their high interest rates and steep guidelines. Nevertheless, we applied and were approved for a $4000 loan, which was just what we needed for some help. And thinking we embarked on a good thing, we would borrow small amounts from that $4k every now and then which made our life in small business a little more relaxed.

    We never missed a payment on our Kabbage loan, not once. And as we paid our monthly debt, our loan amount would grow again. This made it nice because, if we ever needed a little help in the future, it was always there to borrow from. That first year, we were genuinely happy with their services and prided ourselves as being one of their very best and dependable clients.

    Then after the first year or so, we received word one day from Kabbage via an email that they were switching from one lending institution to another but that it would have no impact on Kabbage’s clients. 

    This is when their company took a massive nose dive.

    Once they had a new lending bank in place who gave them the funds for us clients to borrow from, they abruptly changed course and blocked many of us small businesses from borrowing even though we were already well established with them and extremely dependable. We ourselves had a perfect payback record yet they permanently cut us from any future borrowing AND without any advance notice of their intention. The only way we knew we were cut was when we tried to borrow $100 which resulted in their computer bouncing back a notice at our attempt, saying 'we are ineligible for a loan'. And upon a phone call to their company the very next day while in my state of confusion, Kabbage said we were not able to take a loan in the future. Yet, they gave us absolutely NO reason why. We suddenly found ourselves without their services and 1/2 of our original loan amount remaining to pay back. 

    This discriminatory treatment, my friends, is 110% unacceptable.

    Since that time, we have refused to pay Kabbage another dime of what we owed them. As soon as they cut us from their business, we immediately closed our bank account, as well as removed the 'pre-approved payment' link in our Paypal account. For us, it came down to the principle of the matter in how Kabbage's shady business tactics fell on us. We refuse to tolerate this treatment and did exactly what we had to do. Kabbage deserves everything they dish out. Period.

    So folks, save yourself from the horrific reality of your future and just don't sign up with Kabbage. You'll be unknowingly setting yourself up for a huge letdown. They will change their rules on you in the blink of an eye, without any notification, and will leave you hanging while indebted to them. And should you dare falter on even one payment owed to them, they will haunt you in your dreams by their constant moves in cleaning out your bank account, Paypal and the like. Kabbage will stop at nothing to get themselves paid back, no matter what your reality is. They will end up being the worst nightmare you have ever encountered. This, I assure you.

    In summing things up here, Kabbage is nothing but a tragically bad loan shark. And I am putting this mildly. They don't give a rip about your business or what state it might be in for the month. All they care about is making huge amounts of money off you, and in a very short period time, and they are especially good at preying on the weak. They are also experts at changing their rules behind closed doors, and never informing you of those changes until you find out the hard way. By staying clear of this company, you will never be putting yourself at risk in becoming one of their statistics as we, along with many others here in these reviews have.

    It is because of us that has Kabbage laughing all the way to their bank each day. Please learn from us who know.

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    What did Kabbage do when you quit paying them? Did removing the pre-payment links on paypal work? Kind of going thru something similar here.

    esoterica's reply was:    

    DO NOT USE - They are a scam.
    Helpful to 5 out of 6 people

    Do not use Kabbage for a loan. They are not a valid lendor, paypal is not a bank, DO NOT trust this lendor. They will withdraw money from your account without your permission. Horrible service and experience. Would never consider doing business again.

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    High cost to borrow money on their terms
    Helpful to 4 out of 4 people

    Kabbage has been helpful in extending a loan to my small business when I needed it most. Vey few other companies (including my own bank [PNC] who I've been with for 7 years) would extend a loan to me based on limited credit history and outstanding personal loans. Thankfully I was approved by Kabbage. I thought I understood the terms but after my first "pull" of money they changed things slightly.

    Be aware of:

    Very high interest rates. For a 6-month loan, the total interest I pay is clos to 19%! That's a 38% APR! You are better off getting a credit card and paying it off in six months.

    They lump your loans together, magically. At the time you take out each loan or "pull" money from your available cash, they treat it as a separate loan. BUT, when you go to repay it they lump all your loans/interest/costs together. There are no reference numbers on the statement so you can't tell which loan the interest belongs to.

    Support is email ONLY. That's it.

    When you take a loan out, you are AUTOMATICALY enrolled in their auto-payment, and you cannot opt out (I asked). So if your due date is March 1st and you haven't made a payment by March 1st (the whole monthly payment due by the way), they will log into your bank account and take it out for you :) Read the fine print. You gave them your login credentials when you had them check your creditworthyness.

    Overall I am thankful they extended money to me when no one else would. But is taking out $5000 worth it when you will pay $950 in interest? Our product markup is on 20-30% so we would lose all of our profit to interest and then we are out of business.

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    Be careful and warned!
    Helpful to 4 out of 4 people

    I have had Kabbage for over 2 years and the interest is high, but you knw in advance.  My advice, don't do business with them.  If you miss a payment, they will deduct it out of your checking account without authorization or any prewarning.  Not even on your due date, but some random day in the month.  Can't wait to pay in full and say goodbye!

    Read More
    Helpful to 4 out of 4 people

    kabbage will lie to you work out a payment plan but then you end up owing more than the orig balance after payment is made

    do not take a loan warning!

    Read More
    Run as far as you can
    Helpful to 4 out of 4 people

    Between eBay fees, Amazon fees, cost of you products, shipping, and the cost of your living, there is no room to grow with Kabbage, their interest becomes 30%+ after you've paid it off. I was renting a beautiful 5 bed house and now had to move to an apartment still suffering on payments. Stay away, you are better off borrowing from friends, family, or a general bank like WellsFargo of B of A stay away from these mafia member loan gangsters. Working "capital" works for these banks not us hard working business owners. STEER CLEAR

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    Viable Funding Source for eBay Business
    Helpful to 2 out of 2 people

    Kabbage is definitely a viable source of funding for small businesses trading through eBay, Etsy and other ecommerce platforms. But it's important to understand exactly what you are getting into!

    This is a short term working capital facility, good for expanding a promising and viable business. It is NOT a "line of credit" or "bank loan" in the conventional sense. It is also NOT where you need to be if you're scraping bottom and desperately need money to pay your next electric bill! It is NOT "free easy money" for the chronically broke. Go get a "payday loan" instead, or pawn the family silver. With that said...

    I personally have been using Kabbage since February 2014, and I use it mostly to smooth out significant seasonal variations in my eBay business. Kabbage loans have allowed me to BUY inventory during the summer when it's cheapest, and hold on to it and then SELL during the fall and winter when selling prices are the best. Before, I had to turn around and sell immediately, and could never take advantage of good purchasing opportunities during the summer, because I didn't have the sales to pay for them. Kabbage funding allowed me to grow my sales about 70% last year, compared to previous "organic" growth of about 10-15%. Even after the cost of the loans, I come out way ahead.

    The application process IS easy, and you qualify for funding based on your record/history where you sell-- your credit score doesn't really matter. Small business "micro loans" are notoriously risky, and thus expensive-- it's also why commercial banks often will not even TOUCH them. Odds are Kabbage will give you money, but understand that it's costly. So think carefully before you borrow: Do you have an actual PLAN, or do you merely "need money?" If the latter is true... think twice before getting in bed with Kabbage.

    Kabbage gets 4-- rather than 5-- stars from me mostly because of the way they structure their loans. Even though each time you borrow (or "draw") is considered a separate loan, you cannot apply repayment towards any specific loan. And your repayments are always applied to the OLDEST loans first. Why is this bad? Because if you take new loans on a regular basis, you are ALWAYS stuck with the high front-end interest rates (5-8% for the first two months, compared to 1% for the last four). For example:

    Let's say you have a $10,000 existing balance, and borrow another $1000. Even IF you have enough money to make your scheduled monthly payment AND pay off the "new" $1000... you don't get to. You cannot specify that you want to pay off the loan you took two weeks ago (costing you 7%), your $1000 gets applied to your OLDEST outstanding loans, the ones that are costing you only 1%. Credit counseling (and general wisdom) says you should always pay off your highest interest debts first... the Kabbage format pretty much dictates that you to pay off your LOWEST cost loans first, so you're always holding the most expensive debt, paying the highest fees.

    A couple of minor ****les include the minimu draw being $500-- I can often use less than that; and the fact that you must be aware that if your loan due date is "the 26th of the month," that payment flies out of your PayPal account at three minutes after midnight, not during "banking hours." So don't depend on being able to make the deposit you need during "banking hours" on your due date.

    Aside from that, I really don't have any complaints-- I was unable to get funding from my bank (they wouldn't consider a business loan under $20,000-- and I didn't need that) and besides, my credit is only in the "poor-to-fair" range which raises red flags and closes most doors to funding. I'm "high risk," and given that, Kabbage was my best option. Customer service (I've used 3-4 times) seems good, courteous and quick and-- as others mentioned-- "in English."

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    Your credit score does matter! once they checked my score I was declined immediately.
    Go use their "do I pre-qualify" tool. Any score under 600 disqualifies you it seems. I put in that I had sales of 50k with a credit score range between 600-699 and i pre-qualified. Then I put in that had sales of $350k with a credit score between 500-599 and i didn't qualify.

    enycguy's reply was:    

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    Company Overview

    Kabbage is an online financing corporation that provides working capital to small businesses. The online application process only takes minutes, making it quick and convenient. Loan amounts range from $500-$50,000 with 24 hour access to your funds.

    Founded in 2009, Kabbage is based in Atlanta, Georgia, with offices now in San Francisco as well as the United Kingdom. Kabbage was named a Red Herring 100 North American Winner as well as one of the Top 10 most innovative Companies in Finances.

    **Annual Percentage Rates, terms of loan, and monthly payments presented are estimated and were created based upon information entered by the consumer and through analysis of information publicly available at lender websites. While efforts have been made to maintain accurate information, the loan information is presented without warranty and the estimated APR or other terms presented do not bind any lender. Lenders generally have a range of available APRs (for example, a lender’s range might be 7% to 30%) and only borrowers with excellent credit will qualify for the lowest rate available. Your actual APR will depend upon factors evaluated at the time of application, which may include credit score, loan amount, loan term, credit usage and history. All loans are subject to credit review and approval. When evaluating offers, please review the lender’s Terms and Conditions for additional details.