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Kabbage - Small Business Loans

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Most Helpful Positive Review

Apr 15, 2013
It seems too good to be true!
Anonymous Loan Holder

I sell antiques online. Saw an ad on eBay that said I was pre qualified for money, so I applied, and within 2 minutes I got a response that I had $2000 with an opportunity to get up to $10000. I took out $1000 to buy inventory, and was able to pay it back in 2 months. It really saved me to be able to take advantage of an inventory opportunity that I would not have been able to other wise. Yes it is more expensive than some other ways to get money, but where else can you get money that fast, delivered to your paypal account, with out using just a credit score? I will keep using this for sure! Seems like banks don't care about businesses that are doing new things so it is cool that Kabbage is doing this for us.

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Most Helpful Negative Review

Jun 13, 2013
Sorta Interested

It seems to me that they are not fully up front in explaining the full cost of capital in the loan structure, by emphasizing the 2-7% top line cost.

" Your cost will be typically 2%-10% based on your store's monthly revenue and Kabbage score."

You would pay 2% If and only If you pay back the entire balance in the same billing cycle, and if you are lucky ennough to get the 2% rate.

The on site example of Ms. Thompson getting a $10k loan, the first two months clipped for only 3%, followed by 4 months of 1%.

Since this is a fee on the total loan, finding the equivalent APR is rather easy: 3+3+1+1+1+1=10, but since this is a six month loan the APR would be 20%. We can see this in the listed cost of loan in the Ms. Thompson example

  • Advance: $10,000
  • Cost: $1,000

  • Total Due: $11,000

1000 on 10,000 is 10% for six months, or 20% annually.

Caveat Emptor, I am not saying this is a bad thing; like stated above, if you can manage it well this is a good source of short term funding, and let people like Ms. Thompson pay Kabbage's bills.

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Reviews (138)

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Feb 09, 2016
High rates and fees
Anonymous Loan Holder

I will keep it short. I will never use them again, because of their 19% interest rates on their fees and $100 late charges and them taking the money forcefully out of your account instead of allowing you to pay that installment with the next one. Very bad customer service with zero flexibility and courtesy. 

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Jan 27, 2016
Line of Credit
Anonymous Loan Holder

I received Great service from team at Kabbage. The line of credit they provided me a year ago was really helpful in getting my business to the next level.  XXXX XXXXX the Kabbage associate i spoke with was very good at explaining me the options and the cost. He was very personable and overall I had a great experience. 

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Jan 26, 2016

Fast, seamless, no hassle application process! Friendly, straight forward customer service with a smile.

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Jan 25, 2016
Quick Access to Needed Cash

Very easy process, yes it only takes minutes.  Great customer service followup. 

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Jan 27, 2016

Must of been posted by a Kabbage stooge. They are desperate.

Jan 21, 2016
Other options out there
WoosterOh Loan Holder

I have had two loans with them, $4800 and $1600, paid $4800 as scheduled, have 3 months left on $1600.

I called and asked for better rates, though my credit score is 50 points higher, they would not do it.

I just got my 5th PayPal Working Capital loan. It was $7000 with a $564 fee for an estimated 7.5 months life of the loan. That works out to a 22% APR. My Kababge loan was 69% APR. Pay as you sell, not 25% payback the first month as Kabbage is.

With Kabbage you pay back 25% of the loan in 30 days. How does that help you?

If I had borrowed $7000 from Kabbage, my first months fee would of been $595. I am at 8.5, 8.5, 1, 1, 1, 1. I would of had to pay them $1470, compared to $564 for PPWC.

I have started to process of disconnecting all my connected account to Kabbage. I will use my PPWC loan to pay off the rest of the Kabbage loan, saving me $32 in fees.

I was desperate before and needed the money, now I dont.

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Jan 20, 2016
Money grubbing loan sharks
Anonymous Loan Holder

Admittedly, Kabbage did not come to me. I found them in pure desparation to continue to grow my sales on ebay after banks and credit card companies denied me any kind of loans or cards.  They're a great source for the completely desparate fool that needs money in a pinch (I admit, I was that guy). However, Kabbage inserts an absurd 6 or 12 month loan repayment plan that essentially does not allow any kind of repayment unless as others have stated you "heavily mark up" your items.  No one will buy them anyway if you do so and Kabbage does not care if you have a slow sales month.  Yes, Kabbage requires you to link your bank account and YES they will take the money from your bank account. It happened once to me and I only had a day's notice.  The money was drafted out of my account as an "e-check" over the weekend and into a holiday, causing my account to overdraw.  I called the bank first thing in the morning the day after the holiday but money was already "pending".  Mind you that I did call Kabbage before all of this and requested to work things out in some way as the monthly payments are overhelming and cause personal stress, depression, etc.

I can easily say to stay away from Kabbage.  Because of this loan I am heavily considering Chapter 7 or 13 and trying to build a clean slate.  It's a huge risk and it's dangerous and scary for how easily they approve people and put money into your paypal account.  I had my money within 10 minutes after applying.  Sounds nice, but jeez does that sound SHADY.  No credit check and fair warning on this also: credit counselors do not work with Kabbage so if you attempt credit counseling after falling into hard times with them, counseling is out the window.

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Dec 29, 2015
Great - Fast
Anonymous Loan Holder

You can get the loan fairly quickly. Rates are high, but so are others. But when you have poor credit whats a person to do. It got me out of a jam.

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Dec 14, 2015
Does not live up to adverisements

After going back and forth for over a month with the application process, Kabbage just informed me that I didn't qualify. Why? After all , I have a 630 credit score and gross 10K every month, and have been in business over 2 years. What more do they need? They adverise on their website that the minimum requirement is $5000 monthly gross, and 1 full year in business. Sheesh I might as well just wait and get my credit a little higher and just go with a tradition bank. Kabbage is an F-ING joke.

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Nov 30, 2015
Dont Do IT
WoosterOh Loan Holder

I have had two loans, I was nieve and desperate.

Here are the facts. I got $4800 loan with 8,5% fees first two months then 1% fee last four months. I had $1008 in fees.

The fees are for the total loan, not the balance as you pay it down.

They make it seem like it is a 21% loan for 6 nonths, so you go OK, that is actually 42% for the year. NO, that can't be further from the truth.

The actual loan if you were comparing it to say, Credit Cards, is actually around 69%.

If I had put $4800 on a credit card at 69% APR splitting the payments equally for 6 months, I would of paid $5810, compared to the $5808 I paid Kabbage.

If I had put the $4800 on a 25% APR credit card, I would of had to pay back only $5160 over those same 6 months.P

PayPal Working Capitol is about the same as a 25% credit card, but you can take up to 1 1/2 years to pay it back, if you pay it back sooner than their estimate, then of course you pay higher than 25% because it is a one time fee.

I also have a loan with Behalf, I got it for 2% per month, for a 3 month loan, so a $2000 is $40 a month, you pay back $2120, which actually comes out to about a 35% APR, not great, but better than 69%.

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Nov 03, 2015
Poor verification system

I am in business since Jan 2014 and been in the US since 2013. I applied online and for some reason their system was not able to verify my SSN. I then called their customer service and I was told that since their system was not able to verify my SSN I have to wait a year to reapply again. I am able to verify my SSN through other online credit application tools, but I can't reapply to Kabbage because their system sucks and it fails the verification. It makes me think that they don't have a very good system in place, nor good customer service as the personell was rude and not helpful at all.

The funny thing is that they are marketing themselves as they are "helping small business owners", I wonder if they really help or just loan sharks.

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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 on analysis of information provided by the consumer and available rate information from lenders. 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 2% to 12%) 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, vehicle information, credit usage and history. All loans are subject to credit review and approval. Additionally, model year, loan-to-value, minimum loan balance mileage, income, debt, etc. restrictions may apply. When evaluating offers, please review the lender’s Terms and Conditions for additional details.