Compare Small Business Loans
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.
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.
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 Range||9.00% - 36.00%|
|Fees||Six-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 Terms||6, 12 or 18 months|
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
If, however, you need a monthly repayment schedule, Kabbage will be the better choice.
- APR: 35% - 54.96% , on average
- Amount: $5,000 - $250,000
- Terms: 3 - 18 months
- Repayment: Daily or weekly
Kabbage vs. Fundbox
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
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
- 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