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Kabbage Small Business Loan Review – Alternative funding for business owners with bad to good credit

Kabbage Review, lending

Kabbage Small Business Loan Review – Alternative funding for business owners with bad to good credit

Kabbage was originally founded in 2009, with their headquarters stationed in Atlanta Georgia. They offer small business loansĀ for online retailers and merchants, who commonly sell through eBay, Amazon, Etsy, Yahoo! store and Etc.

Instead of having a financial institute look through your credit history and score, Kabbage actually conducts their qualifications based on your accounting, banking and e-commerce data rather than your credit. This would be ideal for business owners who have bad credit but an excellent track record with their business sales and transactions.

Kabbage’s online application is very quick and simple, taking only a few minutes to complete. It could take up to a day to a few days at most to complete the application and have funding available. Funding is very quick and painless after approval, the money is almost immediately disbursed into your Paypal account in under 5-7 minutes or 3-5 days via business checking account.

Kabbage Loan Details  
Minimum/Maximum Loan Amount:$2,000 to $100,000Minimum Business Age Required:1 year
APR:20% to 113% APRMinimum Annual Revenue Required:$60,000
Terms Available:1 to 6 monthsOwner's Credit Rating:Not required. Qualification based on your business
Origination Fee:$0 Early Repayment PenaltyNo

Do you qualify?

Kabbage is one the few online funding companies that will not heavily weigh your credit score or history in qualifying for their loan. So if you were looking for just that, then you are in luck! However, they still need to review numerous factors regarding your business to decide on funding your small business.

You’ll need to be in business for at least 1-year, and have a annual revenue of $60,000 and have a business checking or Paypal account. They will also ask you to link to any other online services that you use with your business, such as eBay, Amazon, Etsy, Yahoo! store to gauge the amount of money they will provide. The more related online accounts that you link, the more it will increase your business profile/strength and loan amount.

Once you have all of your online profiles linked to Kabbage, they review your monthly revenue, length of time in business, transactions to even your social media accounts to determine your borrowing power. Kabbage will also require you to sign a personal guarantee, which means that if your business should fail (hope for success as always!) or simply can’t repay the loan. You will be held personally liable for paying them back.

Types of Loans Available

Kabbage offers their loan from as low as $2,000 and up to $100,000 based on numerous factors related to your business. The loan is best suited to be used as a short term lending source, as the fees can be much higher than a traditional business loan. The typically loan generally last about 4-5 months with 6 months as the longest loan term.

You may also loan out additional money as your pay off what you borrow. It almost acts like a line of credit card, where you gain back your credit once you pay off that amount. It may be useful, if you needed recycle that money toward your business.

PROSCONS
Much lower APR average at 8%-32% (includes a 1%-5% origination fee)Collateral required for loans over $100,000
Can borrow up to $300,000 if qualifiedPersonal guarantee required
Flexible terms, from one to five yearsSeveral days to find out what loans are available to you
Excellent customer support with weekend hoursBusiness must have at least $75,000 in annual revenue (higher than many) and have been in business for two years (longest period of time we reviewed)
Same day approvalNo website resources for small business owners
Kabbage - Small Business Funding: Ready to apply?

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**Affiliate link disclosure. All information here are for educational purposes and should not be used as professional advice. I try to be fair and honest with every review and does not in anyway affect the information provided. By clicking on the link provided above, you will be redirected to the company’s official site. Thank you for support.

 

financetip
Kim Lee is a UNLV graduate with a degree in Biotechnology. He has natural attraction toward technology, with a passion of servicing and helping people. Finance has always been his main interest and hobby, as he likes to dwell into small business and investing ventures. He writes and shares what he learns on the way, while he tackles on a life as an entrepreneur.

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