Kabbage Small Business Loan Review: Lines of Credit With Low Minimum Credit Scores Required

Kabbage Small Business Loan Review: Lines of Credit With Low Minimum Credit Scores Required

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Kabbage’s straightforward eligibility requirements are one of the things we like about the small business lender: You’ll need a personal credit score of at least 640 to qualify for a line of credit up to 150,000.

Kabbage review: Who should apply?

Kabbage’s APRs start lower than with some other lenders and Kabbage has a minimum credit score requirement of 640, so it can be a good source of funding for small business owners with fair credit.

The pros of using Kabbage

One thing that we like about Kabbage is that businesses can receive funds deposited into their account in three business days, making Kabbage a good choice for getting funds quickly and conveniently.

The cons of using Kabbage

Kabbage’s fee structure is also a little confusing to understand. Rather than using interest rates, Kabbage uses a monthly fee rate. This fee ranges from Six-month term: 0.25% to 3.50%, 12-month term: 0.25% to 2.75%, 18-month term: 0.25% to 2.50% of the line amount. Because Kabbage only offers short-term lines of credit, it may not be suitable for all business needs. In addition, Kabbage won’t be a good option if you need a term loan, more than $150,000 or a term longer than 18 months. The lender only offers a line of credit product with amounts up to $150,000 and terms of 6, 12 or 18 months.

Final thoughts

Kabbage offers borrowers a line of credit for businesses. However, if you can afford to shop around, you should evaluate other lenders to see if you can qualify for a lower rate. Kabbage is also not suitable for businesses that want a term loan or more than $150,000 in funding.

Eligibility criteria

To be eligible to apply for a small business line of credit from Kabbage, you must meet the following criteria:

Credit score: 640 or higher

Time in business: One year or more

Annual revenue: $50,000 in annual revenue or more

Kabbage will also consider your business’s bank accounts to approve or reject your business.

Kabbage small business loan features

Kabbage only offers lines of credit to small businesses. You can borrow up to $150,000 for either 6, 12 or 18 months terms.

Line Amount Range
$1,000 - $150,000
APR Range9.00% - 36.00%
FeesSix-month term: 0.25% to 3.50%, 12-month term: 0.25% to 2.75%, 18-month term: 0.25% to 2.50%
Line of Credit Terms6, 12 or 18 months
Repayment OptionsMonthly

Kabbage application process

The application process at Kabbage is entirely online and typically takes less than 10 minutes to complete. You’ll need to enter some personal information, as well as basic information about your business — this will include its legal name and address, industry type and federal tax ID or employee identification number. You’ll also need to consent to a hard pull on both your personal and business credit reports. After assessing the health of your business through an automated online process, Kabbage will approve or reject your application.

How does Kabbage compare to other online lenders?

Before choosing Kabbage, you may want to consider alternative options. Let’s evaluate some of its competitors.

Kabbage vs. OnDeck

on SnapCap, another LendingTree affiliate
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OnDeck is a better option than Kabbage if you'd prefer a term loan. OnDeck offers small business term loans, as well as lines of credit, for up to $250,000 and $100,000, respectively. To be eligible, you’ll need to be in business one year with at least 100000 in annual revenue, as well as a personal credit score of at least 600. OnDeck does require daily or weekly repayment, which — depending on your business — could be a good or bad thing.

If, however, you need a monthly repayment schedule, Kabbage will be the better choice.

Highlights (loan)

  • APR: 35% - 54.96% , on average
  • Amount: $5,000 - $250,000
  • Terms: 3 - 18 months
  • Repayment: Daily or weekly

Kabbage vs. Fundbox

on Fundbox's secure website
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If you can’t meet the eligibility criteria at Kabbage, Fundbox is another good choice for working capital financing. Qualifying at Fundbox is based on your time in business (three months transaction history in a business bank account or two with Fundbox-supported accounting software), revenue ($150,000 or more) and personal credit score (600 minimum). Accounting services that Fundbox works with include QuickBooks, FreshBooks, Harvest, Clio and Zoho.

Fundbox offers both a term loan and line of credit product, and either one can help you with cash flow gaps or working capital needs. Like Kabbage, Fundbox also offers quick funding in as fast as two business days.

Highlights (term loan)

  • APR: starting at 8.33% for 24 weeks and 18.00% for 52 weeks
  • Amount: $2,000 - $150,000
  • Terms: 24 or 52 weeks
  • Repayment: Weekly

Kabbage vs. Funding Circle

on Funding Circle's secure website
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Funding Circle offers financing in the form of term loans and lines of credit, with notably larger amounts than Kabbage does for its line of credit. You can borrow up to $500,000 through Funding Circle with rates between 4.99% - 19.49% and term lengths of 6 - 60 months.

However, qualifying for a Funding Circle business loan is a little more difficult: You’ll need to have been in business two years with a personal credit score of 660 or higher. You’ll also need to be able to personally guarantee the loan.

Funding Circle is a marketplace lender, and it can take as little as one business day to fund your loan offer.


  • APR: 4.99% - 19.49%
  • Amount: $5,000 - $500,000
  • Terms: 6 - 60 months
  • Repayment: Weekly, Bi-monthly or Monthly

Kabbage vs. PayPal Working Capital

on PayPal's secure website
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PayPal Working Capital is only suitable for businesses that make a majority of their sales through a business PayPal account — so if you don’t use PayPal, Kabbage would be the winner here. To qualify for a PayPal working capital loan, you’ll need a PayPal Business or Premier account that’s been in use for the past three months with $15,000 or $20,000 in gross annual revenue, respectively. PayPal does require repayment as a percentage of each sale you make on the platform.


  • One fixed fee instead of interest
  • Amount: Not disclosed
  • Terms: Up to 12 months
  • Repayment: A percentage of each PayPal sale, with a minimum payment 90 days

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.