What is a Kabbage Loan?
Kabbage is a lender for small businesses financing. Their primary loans are for small businesses as a credit line for working capital needs. In addition to business line of credit they also offer both secured and unsecured loans such as online loans, short-term business loans, inventory loans, equipment loans, factoring, merchant cash, plus industry-specific loans for retail, construction, restaurant, medical, dental, wholesale, trucking, pawn shop, auto repair and beauty salon. Read my full Kabbage loans review
How do Kabbage Loans Work?
The process to apply, qualify and receive a Kabbage loan are as follows; apply online in 10 minutes by connecting your online accounts, such as bank account, accounting software, payment processor and e-commerce store, your business performance and your credit score is quickly analyzed and you will know right away if you are approved. To access your funds you can get it transferred to your Paypal account, bank account or use your Kabbage card to access the funds like a credit card for business-related purchases.
How Safe is Kabbage?
Are Kabbage loans personally guaranteed?
No, Kabbage does not require you to personally guarantee the loan, which an SBA loan usually requires. This means that you can secure a line of credit for your business without personal liability.
Are Kabbage loans secured or unsecured?
That depends on which loan you take from Kabbage they offer many types of loans both secured and unsecured. Most people take the unsecured line of credit from Kabbage loans.
Are Kabbage loans a good deal?
Yes, they are a good deal for small business owners who cannot get approved for traditional small business or SBA loan. It is especially good for people who have a lower credit score and rocky credit histories. Before Kabbage loans these types of business owners had no options of lenders.
To evaluate the if these type of short-term loans are a good deal for you use the ROI (Return on Investment) loan calculator at Kabbage. This ingenious tool allows you to see the returns you can achieve by investing in working capital into your business. It works by you entering what you are using the loan funds for, such as inventory, equipment, marketing or hiring. Then enter the increased sales, billable hours, monthly revenue from new equipment and lifetime value of new customers. Finally select your loan term, 6 or 12 months and it will calculate your ROI percentage – the return on your business investment. Be prepared to be pleasantly surprised. I used the calculator to estimate my ROI on inventory purchases and it was over 4000%!
Are Kabbage loans legit?
Yes, they are a credible and reliable lender with an A+ review from the Better Business Bureau BBB . The company has over 115,000 small business customers and has lent over $3.5 billion in loans.
Does Kabbage do a credit check? Personal or Business credit checked?
As part of your loan application review will check your personal credit just one time at Experian. This is much better for your credit report than some other lenders who do multiple credit checks damaging your credit score.
Does Kabbage report to credit bureaus?
At this time, Kabbage does not report either your loan approval nor your repayment schedule to major credit bureaus. This is actually good news for small businesses who sometimes run late on payments because negative marks on your credit report could seriously affect your ability to get business loans at a future date.
How much does Kabbage loan?
Kabbage loans start at $2,000 and go to $250,000
What is Kabbage loan interest rate?
Kabbage loan rates and terms vary depending upon your business revenue and longevity. You can run the numbers and see exactly what your total loan fees will be by using the Business Loan Calculator.
Kabbage loans have a monthly fee for each month that you carry an unpaid balance on your working capital loan. Monthly you will repay 1/6, approximately 17% of the total loan for 6-month loans or 1/12 approximately 8.5% of total line of credit for 12-month loans, plus the monthly fee.
The range of fees is 1.5%-10% based on your business performance metrics. Apply now and fix out what your fees would be.
How is Kabbage funded?
They are well-funded with over $4.0 billion in securities with over $500 million in equity from banking industry leaders such as Credit Suisse, ING, Santander, and Scotiabank.
Where is Kabbage Located?
They are an online based, at www.Kabbage.com, company offices headquartered in Atlanta, Georgia. However, Kabbage loans are issued by Celtic Bank, a Utah-chartered Industrial Bank, Member FDIC.
How to close a Kabbage Account
How to remove Kabbage from your Paypal account
Once you have paid your loan in full or changed your payment method you can remove Kabbage from your Paypal account by logging into Paypal and go to Profile>My Money> My Pre-approved Payments and Cancel Kabbage from that list. Also, go to Profile>My Account Settings> Service Providers (a small link at the bottom of account settings) and remove Kabbage from this area also.
What to do If you can’t pay your Kabbage Loan?
When you applied for your Kabbage business loan you had every intention of paying it back as specified. However, due to circumstances. You fell behind by payment or more. While you wish your income and sales were higher, they are not, so you are unable to catch up with your loan payments to Kabbage.
What should you do to protect yourself, your business, your personal assets, and your credit score?
Here are actions to take based on both Kabbage policies and the advice of other Kabbage loan users who had difficulty paying:
DO Contact Kabbage Account Management Professional Team
Keep in touch with your lender Kabbage.com and apprise them of your financial situation and explain why you cannot pay at this time.
Your lender wants to be repaid and will work with you and perhaps set up a payment schedule that works with your budget. It is also to your advantage to work this out at the early financial difficulty stages instead of waiting until it is too late and you are sued in court.
In fact, at Kabbage.com they have a full team dedicated to helping you work out your payment schedule. They are called Account Management Professionals and are dedicated to helping you get your loan and payments back on track.
This team understands that it is your responsibility to repay your loan in full, however, they are also aware that sometimes there are serious financial difficulties that arise to prevent your repayment on schedule. They may offer a host of solutions for those who qualify, which will provide forbearance and financial relief.
It is critical that if you find yourself unable to repay your business loan before you end up in default communicate with them right away and continue to avoid the situation escalation.
You can call their toll-free number at 888-986-8263 or Customer service email: [email protected]
Don’t Send Partial Payments without a Payment Schedule
Don’t attempt to resolve the situation yourself by sending in payments less than the full amount to hoping that that will satisfy your loan agreement. Instead, contact the account management team at Kabbage to set up a formal repayment schedule. Otherwise, your temps by sending them partial payments will do nothing to prevent your account being closed and sent to collections.
Don’t Try and Hide by Closing Your Online Accounts
The worst thing you can do is try to hide both from the fact that you’re in serious financial difficulty and from your lender at Kabbage.com. Erroneously some people think that by simply closing down their PayPal, eBay or QuickBooks accounts makes them invisible. Not only is this untrue and dishonest. It is the worst mistake when it comes to loan defaults.
While you may be unaware of it, if you took a Kabbage business loan, you agreed to secure it with your personal collateral. This means that you accepted the loan terms which allow your lender to collect by seizing your personal property, such as bank accounts, real estate, and stock.
Kabbage Loan Default
Defaulting, not repaying your loan within the specified time, is a serious matter and could cause damage to your business and personal credit score plus negatively affect your ability to get business loans in the future.
Loan agreements are legal documents, and as such when you default you can indeed be sued for the principal amount, plus interest and damages, so it is unwise to not deal with the situation directly with your lender.