Kabbage Loan Reviews: Right for Your Small Business?

Quick Facts about Kabbage Loans:

    • Loan Amounts: $2,000 – $250,000
    • Repayment Terms: 6 months or 1 Year
    • Interest Rates: 30-50% APR
    • Fees: None (no origination fee, no account maintenance fees, no prepayment penalty fees)
    • Funding Time: 1-3 Days
    • Approval Time: 10 minutes to apply, often decisions within minutes, up to  48 hours maximum
    • Credit Score: Not applicable (your business information, revenue, and expenses, are used to determine eligibility)
    • Minimum Eligibility Requirements: Business operational for one year (12 months), revenue of $50,000
    • Technical Requirements: Online accounts with payment processors (Paypal, etc) and/or accounting software (Quickbooks, etc)
review of kabbage business loans for small businesses, APR interest rates, how it works, how to apply, funding, fees and customer reviews
Are Kabbage small business loans right for your business? Read this in-depth review and you will then know.

This Kabbage review will answer your questions about small business loans honestly and in-depth (yes, these loans are perfect for fast money for people with poor credit) so you can decide if applying for a Kabbage.com loan or line of credit is the right move for funding your company. Read this Kabbage loan review to learn from verified customer Kabbage loan experiences, ratings, Yelp reviews and complaints filed with the Better Business Bureau.  Kabbage Working Capital

kabbage reviews for small business loan

You can apply online in about 3 minutes here.

Kabbage Reviews Conclusion – Customer Satisfaction

  • Good – Quick Cash for Poor Credit Individuals
  • Bad – Higher Fees and Shorter Repayment Schedule



Every company needs money, working capital, to stay open. To have merchandise to sell you need to buy materials to build inventory.  Payrolls costs need to be paid even during seasonal sales fluctuations.  Small firms rely on loans to fund these activities. Kabbage is one choice of alternative small business financing that is a good option for some companies.

Read my comparison of Business Credit Lines vs Business Credit Cards advantages and disadvantages

Our Kabbage reviewers loved the super easy application process which is a plus for busy entrepreneurs. In comparison, other many banks require completion of long loan documents. You will know if you are approved within 48 hours. Then you will receive the loan proceeds very quickly often within just a few short days. This is crucial for enterprises that are working to capture opportunities with strict deadlines.

You can apply online in about 3 minutes here.

Kabbage, unlike banks and other lenders, doesn’t only use your personal credit score to evaluate your loan worthiness, instead, they study your accounting and banking data online. Lots of entrepreneurs have less than stellar credit history. Kabbage knew that fact and crafted their small business loans to work around the owner’s credit scores.  Because Kabbage is lending money to more risky ventures, their fees are higher than some other financing alternatives.

Small businesses can borrow up to $250,000 to pay for payroll expenses, inventory, merchandise, marketing, and advertising.

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Kabbage Business Loans APR – Annual Percentage Rates and Fees


The Wrong Way to Evaluate Kabbage Interest Rates:

WARNING – DO Not try to compare Kabbage business loans to personal, and other business type loans which you are more familiar with such as traditional bank installment loans such as home mortgages and car loans using the APR – average percentage rate.  

You will end up confused and disappointed. I know I did 🙁

Yes, certainly when shopping for a car loan you SHOULD compare the APR since the types of loan, and its repayment structure is similar to each other. However, that is NOT the case with these Kabbage short-term business loans. They are structured very differently and should be evaluated with different metrics. 

If you try to use this method of loan shopping by APR it is like comparing apples or oranges, while both tasty fruits they are vastly different!

Personal loans for tangible items, such as cars and houses, are secured collateral backed loans. After making your payments for the specific term you own the asset outright. Contrast that with a working capital business loan that after using the cash and paying it back you own a larger and more valuable company. 

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The Right Way to Evaluate Short Terms Business Loan Interest Rates

Change the way you evaluate the cost and value of these type of loans to your business by using these correct measures instead of the old-fashioned, and inappropriate in this instance, standard APR (Annual Percentage Rate).

>>INSTEAD Decide how much is the money WORTH to your firm to grow, recover and survive today.

Fuel for Growth

The greatest value of working capital for small business is the fuel it provides to help your small business grow bigger. The loan proceeds can purchase more inventory for greater sales volume, hire more employees to perform more services which generate more cash and profit in your firm.  With working capital, you can fulfill larger orders. This formula is called ROI – return on investment, which means how much money can you make with the money you borrow.


  1. Borrow $50,000 to purchase inventory
  2. Sell that inventory for $100,000
  3. Payback the loan, including fees, and retained earnings

ROI (return on investment) $44,000 , 78.57% ROI – AFTER loan and fees repaid

You can calculate your actual ROI, for investment in merchandise, equipment, marketing or hiring with the Kabbage Loan Calculator

Survival and Security  

One of the greatest reasons for small business failure is lack of capital to meet emergencies. Life is uncertain – especially that of a small business owner. It is not – IF disaster strikes, it is WHEN!  Having a line of credit in place, available for the unthinkable, allows you to recover from disasters such as cyber attacks, new competition, lose of major clients and more and stay in business.

Every small business experiences shifts in sales patterns, seasonally or with market fluctuations. During those times of reduced cash flow, your fixed expenses such as rent and payroll still need to be paid – in full and on time. Working capital financing covers this shortfall to keep your business operating until the seasons heats up and your sales increase.


  1. Business loss happens – order cancellations, cybercrime or unfair competition
  2. Operations cease, store closes and sales decrease
  3. Borrow $50,000 short-term Kabbage loan
  4. Repair hacked website, get new customer order, launch marketing campaign to regain market share
  5. Business reopens, becomes stable and increases sales

Value of Loan – Business stays in business and your initial startup investment remains intact – 100% Succesful 


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Kabbage Reviews – Positive and Negative Ratings

Positives about Kabbage Loans

#1 benefit to small businesses is the speed of application to receipt of monies. This entire process from applying for the loan online to getting cash in your Paypal account can be accomplished in under one week. Compare that to traditional lenders schedule of over 30 days+.

Lots of owners love not having to fill out endless forms and reams of paperwork to apply for a loan or line of credit. Kabbage, being a leader in the digital revolution, uses the data from your online accounts such as Quickbooks, Xero Paypal eBay, Etsy, and Amazon, to evaluate your creditworthiness.

Bad credit is not an impediment to getting this business loan. Many an entrepreneur is held back from getting funding for their ventures due to past credit mistakes. Yesterday’s tough times stop people from moving forward into their own marketing.  Fortunately, this is not as much of an issue at Kabbage. They will check your credit score but not use it exclusively to approve your loan. The data from your online activity is considered more heavily and weighted to your advantage. The loan fees are based on the data you supply.

Negatives about Kabbage Business Loans

Complex fee structures are hard to understand. Your fees will be based on Kabbage’s assessment of your ability to repay. It is structured similarly to mortgages, where you pay the interest first and principal later. Each monthly payment is comprised of both a percentage of the loan amount and your interest fee. In this example of a six-month loan, you pay a fee of between 1%-10% of the total loan for the first 60 days. Thereafter the fee amount reduces to 1%. Read your loan agreement for full details on these fees.

Rates are higher than traditional lenders due to the lenient credit requirements. You pay Kabbage extra money for their trust in your less than stellar credit rating. They take greater risk by lending to such individuals and need to charge more to cover loan defaults.

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Kabbage Loan Requirements

Qualifying for Kabbage is straightforward. As with all types of business loans, it is wise to review the bank’s requirements listed below before applying. Applying is free. You know that you do not need to accept the loan or credit line upon approval. Kabbage is more lenient than most lenders and you may find that you do indeed fit the requirements.

Kabbage Reviews Overview

  • No set number for personal credit score – great for those with low, poor or bad credit
  • Only one year in operation
  • $50,000 in sale revenue annually, or at least $4,200 for the last 3 months.
  • Business checking account or online payment system such as Paypal. For loan proceeds and to make automatic payments.

kabbage loan reviews working capital

Kabbage Reviews Customer Ratings 2018 – Comparison Chart

The best way to evaluate any business loan source is to read the experience of actual customers. Our Kabbage reviews have analyzed hundreds of verified customers ratings and compiled this comparison chart below. What are customers ratings and reviews of actual business owners who got loans from Kabbage.com? Would they recommend getting loans or lines of credits from Kabbage.com?
We analyzed thousands of customer reviews and star ratings, on multiple trusted review sites, to compile this overview chart of customer experiences and reviews of Kabbage loans: Read the Kabbage reviews and find out if they are the right funding source for your company.

SiteOverall RatingTotal
Consumer Affairs4.0 stars – Very Good7“Took only 2 hours to be approved”
“Their website was extremely easy to use”
“I would recommend them to anyone in need of a loan”
“Great online customer service”
Trust Pilot5 stars – Excellent 9.3 out of 10 score2, 48“no hassle professional organization”None
“I recommend Kabbage to every person”
“Application was easy and simple”
“money was there same day”
Merchant Maverick3.5 stars – GoodNot applicable“I loved kabbage got the money and went perfectly great”“misunderstandings of payment due dates”
“speedy application process”“Front loaded fees, but no prepayment penalty”
“fast access to cash loan proceeds”
Credit Karma3.5 stars – Good578“Fairly easy to obtain the funding”“Kabbage can freeze your credit line”
“Excellent if you know how to use it”
“Fast, easy and straightforward”
SiteJabber.com3.0 stars – Good120“A great service”“Declined by auto system”
“Found it very easy and useful. Much better than others that wanted to charge me daily at high interest”
Nerd Wallet3.5 stars – Good“Never had a problem with them”“Smooth sailing for 6 months then we had a problem”



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Kabbage Competitor Lenders Reviews

When considering getting a business loan it is wise to review all your options. Here we review the top alternative financing options as compared to Kabbage, Ondeck and Paypal loan reviews.

Review Table - Alternate Financing

Comparision of Kabbage, Ondeck and Paypal loans
FeaturesKabbageOnDeck CapitalPayPal Working Capital
Loans Minimum and Maximums$2,000 - $100,000$5,000-$500,000$1,000-85,000
Payment Period1-12 months3-36 monthsNo set time period. 1-18 months
ApprovalDay of applicationDay of applicationDay of application
Credit Scores550 plus500 plusNo set score
Credit LimitsVaries dependent upon credit scoresUp to 15% of annual sales4-15% of annual PayPal sales
Guarantee PersonalYesYesNo
Use of Loan ProceedsInventory, Payroll and Business ExpensesInventory, Payroll and Business ExpensesInventory, Payroll and Business Expenses
Prepayment PenaltyNoYesNo
APR (Annual Percentage Rate)
Varies dependent upon credit score

reviews for kabbage loan


Kabbage Loan Calculator

Kabbage makes getting business loans easier. Use the Kabbage loan calculator to estimate your monthly payment on your loan or credit line. It will calculate the fees and your loan amount payment schedule.  Super easy and fun to use. Just slide the bar for the loan amount you want to apply to the lender and it will instantly display the fees and also early payment savings. The right column details your payments by month until the loan is repaid in full.   Your total fees are clearly shown – nothing hidden in the fine print. I really like that transparency in a lender.



figure out monthly business loan payments

Kabbage Customer Service Number

You can call their toll-free number at 888-986-8263

Customer service email: support@kabbage.com

Kabbage Atlanta Headquarters address:  730 Peachtree St NW #1100, Atlanta, GA 30308



Kabbage Reviews BBB

Kabbage is BBB Accredited since 1/21/2014. Below is the link to the Better Business Bureau complete report for Kabbage, Inc. I have personally read all reviews and complaints and my conclusion is a small percentage of customers have had administrative issues. The reviewers and complainants write about lost paperwork, delayed approvals, and customer service misunderstandings. Honestly, this could be said of any large financial institution who deals with millions of loans. The vast majority of customers are positive and 5 stars for Kabbage reviews.






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Hi - I am a serial entrepreneur, after doing "time" in corporate America, who has learned about what products and services work well for entrepreneurs who want to start a business. You can learn from my experience and my associates as we shop from the internet for tools, supplies, and information to build our businesses and improve the lives of our family and ourselves. Read more ...