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Kabbage Small Business Loans: 2021 Review

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Updated July 15, 2021

Overview of Kabbage

Originally venture-backed, Kabbage Funding was acquired by American Express in October 2020. It started out specializing in providing small business loans in the form of lines of credit, which applicants could use to support various aspects of business operations, including purchasing assets and managing cash flow. Kabbage's lines of credit are now up to $150,000, and the company has added business checking and payment processing to its small business offerings. Below, you’ll find Kabbage reviews from online and an overview of how its loans work so you can decide if Kabbage is the right lender for your business. 
Pros and cons


  • Fast application and approval process 
  • Funds are deposited within a few days of approval
  • No prepayment penalties or hidden fees
  • Flexible lines of credit for established businesses


  • May have higher APRs than some lenders
  • Requires being in business for at least 12 months and either having an American Express business card account or prior Kabbage Funding approval
  • No long-term loan options

Kabbage Small Business Loan Terms, Rates, and Fees

Loan amounts: Lines of credit range from $1,000 to $150,000. (There is a waitlist for non-Kabbage and non-American Express customers as of Aug. 23, 2021.)APR range: Kabbage interest rates do not operate like traditional annual percentage rates (APRs). Instead, there is a monthly fee (0.25% - 3.50% of the principal balance as of Aug. 23, 2021) you pay over the course of the loan, which typically translates to an estimated APR between 9.00% and 36.00%.Origination fee: None. The monthly fee covers loan underwriting and processing costs.Minimum credit score: 640 Time to funding: 0 to 3 daysCo-borrower needed: No. 

What Types of Loans Does Kabbage Offer?

Kabbage connects small business owners with funding through flexible lines of credit that range from $1,000 to $150,000. Each time you draw on the line of credit, you’re issued a new installment loan with 6-, 12-, or 18-months terms to repay the amount you borrow. There are no penalties for early repayment. A Kabbage line of credit could be a great option for established small businesses with consistent revenue who need fast, short-term funding to support their growth and financial goals. Funds can be used towards  working capital needs, including purchasing inventory and equipment, hiring staff and launching marketing campaigns. Because Kabbage loans operate as lines of credit, business owners can access the funding they need, when they need it. Kabbage reviews each applicant’s monthly and/or annual revenue to determine eligibility. If you have revenues of $50,000 annually, or $4,200 monthly, you may qualify regardless of your credit score. 

Important to Keep in Mind

Kabbage Funding can be a solution for established businesses who need fast access to financing, but they do not provide credit access to the following industries:
  • CBD/Marijuana-related businesses 
  • Firearms
  • Gambling
  • Financial institutions
  • Lending institutions
  • Non-profit organizations
Additionally, for borrowers seeking immediate financing through the Paycheck Protection Program or other loans overseen by the Small Business Administration, contacting a Kabbage representative may ensure that the loan process continues in a timely manner. Our research revealed that some borrowers have experienced a lack of communication after the approval, leaving questions about the status of their loan. 

Kabbage Loan Fee Structure

While many lenders use a traditional annual percentage rate (APR) to help potential borrowers determine loan costs, Kabbage utilizes a fee system that’s based on business performance, amount borrowed, and loan term length. You pay the monthly fee during each month you have an outstanding balance. The monthly fees can range from 0.25% to 3.50% of the principal balance.Fee rates typically come down after two to nine months, depending on the term length,  so there is less incentive to repay the full loan amount after the rate drops. However, if you decide to pay back your Kabbage loan early, there are no prepayment penalties.

Other Lenders

What may be the best small business loan is different for every business. Whether you need funding to manage cash flow or make an equipment purchase, it’s important to find the right lender for your needs. Start here to see how Kabbage Funding compares to BlueVine, OnDeck, and other lenders. 
  • BlueVine
  • OnDeck
  • Fundbox

Applying for a Kabbage Small Business Loan

Many Kabbage customer reviews call out the simplicity and speed of the application process as one of the lender’s best attributes. Generally, in less than 10 minutes, consumers can apply for a Kabbage line of credit by following these steps:
  1. Fill out the application with basic information including name, address, Social Security Number, and business tax ID.
  2. Link bank account(s) and other business services, like QuickBooks, Stripe, and PayPal, directly to a Kabbage application so that the software can assess the applicant’s business performance. (Kabbage will also pull commercial and personal credit reports.)
  3. Supply additional information for large loans that require a manual review.
  4. Get a decision.

Kabbage Funding Eligibility Requirements

Kabbage reviews each applicant based on their business revenue and verifies these additional eligibility requirements:
  • At least one year in business
  • Revenues should be $50,000 annually or $4,200 monthly over last three months (this may not be the case anymore under American Express)
  • Maintain a business checking account
  • Business tax ID number
  • Doing business in any of the 50 U.S. states or U.S territories

Kabbage Loan Repayment

Each month there’s an outstanding balance on your Kabbage line of credit, you’ll repay the loan principal (an equal amount each month, depending on your loan term) plus the monthly fee. You repay your Kabbage loan by connecting a verified bank account from which funds will be deposited and automatically withdrawn each month. Borrowers can have multiple accounts on file, but may only use one, primary account for repayment. Borrowers may also make manual repayments towards their balance, if they choose, as there is no penalty for early repayment. Kabbage uses the autopay (ACH) process to collect repayment. When borrowers sign their loan agreement, they agree to allow Kabbage to automatically withdraw funds from the primary account on the due date. Autopay operates seven days a week. If borrowers use ACH repayments, and the due date occurs on a weekend, the repayment will post to the account on the due date, but will not be processed by the bank until the next business day. PayPal repayments will be processed the same day they are posted in the Kabbage Funding account. As long as repayment is posted to your Kabbage account by the due date, no late fees will apply. Autopay will not occur if you prepay the minimum monthly payment before the due date. 

The Bottom Line

Kabbage Funding is a resource for small business owners who need fast cash with short repayment terms. Since Kabbage relies more on a business’s average monthly and/or annual revenue to determine eligibility, even applicants with poor credit may qualify. But, if you’re looking for lower rates and higher loan amounts, there may be other lenders that better align with your business needs. Consider comparing against OnDeck, for similar loan options.Looking for more small business loan options? With Lantern's help, you can spend less time searching for financing and more time growing your business.

Frequently Asked Questions

What are the qualification requirements for a Kabbage loan?
Does Kabbage offer Paycheck Protection Program (PPP) loans?
What is the monthly fee for a Kabbage small business loan?
How do Kabbage loans work?
Is Kabbage legit?
Do Kabbage loans require collateral?
Does Kabbage run your credit?

About the Author



Lantern is a product comparison site that makes it easy for individuals to shop for products and compare offers with top lenders. Lantern is owned and operated by SoFi Lending Corp., the digital personal finance company that has helped over one million people get their money right.
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