Kabbage Review

  • Updated on:
Our unbiased reviews and content are supported in part by affiliate partnerships. Learn more.

Need Help Finding a Loan? Click Here

Phone Number
Date Established
Atlanta, GA


  • Suited for small businesses
  • Relaxed borrower qualifications
  • No additional fees
  • Fast application process


  • Unsuited for startups
  • Potentially high APRs


Founded in 2009, Kabbage is an online lender that offers lines of credit to eligible businesses. Originally, the company only worked with online retailers, but they’ve expanded their reach to service brick-and-mortar businesses as well.

Finding a lender more convenient than Kabbage would be difficult. In most cases, business owners can apply, get a decision on their rates and fees, and start drawing funds within a few minutes. That’s really fast, even for an industry that’s known for coming to quick lending decisions.

The speed comes at a price, though. With APRs that potentially range between 18% and 106%, this lender provides some of the more expensive loans you’re going to come across. And while they don’t have a prepayment penalty, many merchants don’t like that Kabbage’s loans are front-loaded, which means you can’t save very much money by repaying early.

Aside from the fees, this company has a few issues regarding customer communication. However, you could do a lot worse than Kabbage. I like how repayments are made monthly (as opposed to similar lenders which generally require weekly or daily payments), and I like the peace of mind offered by having a credit line available should you ever need it.

Read on for the full review, or check out some of our favorite alternatives to Kabbage.

Services Offered

Kabbage offers business lines of credit.

Borrower Qualifications

To qualify for a loan from Kabbage, here’s what you’ll need:

Time in business:Minimum of 12 months
Credit score:N/A
Revenue:Minimum $50K annually, or $4.2K for the last 3 months

Kabbage does not have a specific credit score requirement. However, this lender does pull your credit during the application process.

Terms & Fees

These are the terms and fees stated on Kabbage’s website:

Borrowing amount:$2K – $150K
Draw term length:6 or 12 months
Interest rate:1.5% – 10% per month
Draw fee:None
APR:Approx. 20% – 106%

Kabbage loans have a term length of either six or 12 months. Each month you repay 1/6th or 1/12th of the principal plus a fee.

This lender does not enforce a prepayment penalty, but keep in mind that Kabbage operates on a front loaded fee structure. For the first two months of a six-month loan, and the first six months of a 12-month loan, your fee will be somewhere between 1.5% and 10% of the original principal per month. For the remaining months, your fee will be 1% of the principal. Still confused? Kabbage has a very nice loan calculator on their website, which may be helpful for understanding the structure.

Assuming you don’t repay early, that adds up to an APR somewhere between 20% and 106%. In terms of dollar-for-dollar cost, for every $1K borrowed, you’re looking at fees between $70 and $240 for a 6-month loan, and fees between $150 and $660 for a 12-month loan.

Other than the monthly borrowing fee, Kabbage does not charge additional fees. For example, you will not be charged draw fees, maintenance or servicing fees, unused line fees, or a prepayment penalty. However, the lender does charge a late fee between $10 and $100, depending on the value of the late payment.

Before borrowing Kabbage will disclose information about your loan using a SMART Box, which will disclose everything you need to know to decide whether or not the loan is worth it. The lender has an example SMART Box on their website.

Application Process

The application process is entirely online. Kabbage will ask for information about you and your business. You will also have to give the lender read-only access to your business bank account and any other data channels you use (such as eBay, Paypal, Etsy, Square, Authorize.Net, Amazon, and others).

Kabbage uses the information provided to determine your monthly fee and maximum credit line. They will also do a hard pull on your credit. Although Kabbage doesn’t have any minimum qualifications regarding your personal credit score, they do use your credit history to help verify identity and determine risk.

Your rates and fees are decided by an algorithm. In general, it only takes a few minutes for the system to decide whether to approve or deny your application.

The most likely holdup you might encounter is if Kabbage has trouble verifying your identity or bank account. If that’s the case, you may have to wait a few extra days for approval while Kabbage takes steps to verify the information.

Sales & Advertising Transparency

Kabbage fully discloses all numbers, fees, application procedures, and terms of service on their website. I’m particularly fond of their help center which answers common questions, and the loan calculator which can help you understand Kabbage’s unusual fee structure.

Before borrowing, Kabbage provides your loan details in a SMART Box, a standardized method of disclosing financial information so borrowers can easily compare offers. This box includes the total cost of capital, the APR, the monthly payment, and the cents-on-the-dollar cost for easy comparison.

Customer Service & Technical Support

If you can’t find the answer to your question(s) in Kabbage’s help center, Kabbage is available via phone or email. The lender also has a fairly active presence on social media sites including Twitter and Facebook.

A few customers have complained that Kabbage does not assign a single representative to each client; instead, they opt to have different sections of their customer service specialize in different things. So if you’re having a difficult problem, you might have to talk to several representatives before arriving at a solution. Otherwise, the responses to customer service have been largely positive.

Negative Reviews & Complaints

On the Better Business Bureau, Kabbage has an A+ rating, with two negative reviews and 40 complaints in the last 3 years. They also have a presence on Sitejabber and TrustPilot.

  • Expensive capital: With APRs that range from about 20% – 106%, Kabbage loans can be expensive. I’d advise anybody interested in Kabbage to take a look at some other lines of credit before settling on a service, as you may be able to find better rates elsewhere.
  • Front loaded fees: Kabbage gets a lot of criticism because the bulk of their fees have to be paid off up-front. Although they technically don’t have a prepayment penalty, the front loaded fees make it difficult to save a significant amount of money by repaying early.
  • Slow ACH transfer: If Kabbage is transferring your capital via ACH, the process generally takes up to three days. Unfortunately, ACH transfers are largely outside of Kabbage’s control. If you need the funds quickly, transfers to PayPal are instantaneous and funds can be accessed right away with a PayPal business debit card.
  • Sudden loan limit cut: Kabbage keeps an eye on your cash flow, so if business is starting to go sour, they might reduce your borrowing limit or cut off your credit line entirely. If this happens, you’ll still have to repay any outstanding debt you still have.

Positive Reviews & Testimonials

Kabbage also has a very positive aggregated rating on TrustPilot and a few testimonials on their website. Overall, merchants are happiest with:

  • The speed and ease of application
  • Fast access to cash
  • The customer service

Aside from reiterating what the TrustPilot reviewers said, the merchants in the testimonials seem to like the financial safety net that’s provided by the line of credit style structure. Once you get into their system, Kabbage capital is always there if and when you need it.

Final Verdict

There are a lot of things to like about Kabbage. Most businesses will be eligible for their service, the application process is fast and painless, the capital is always there when you need it, and they don’t charge extra fees. In general, Kabbage is very transparent—you’ll know everything you need before borrowing money, and you shouldn’t come across any surprises.

Nonetheless, Kabbage would not be my first choice. Most of the appealing factors are simply characteristics of a line of credit type loan; although Kabbage might have been the only marketplace lender to offer lines of credit in the past, now there are a few companies that offer products with potentially better terms and fees.

However, if the convenience of a loan is more important to you than the high cost, or your credit score isn’t quite high enough to get another line of credit, Kabbage may be the line of credit for you.

That said, before you make any decisions you may want to take a look at some of Kabbage’s competitors or a comparison of our favorite lines of credit.

Bianca Crouse

Bianca Crouse

Bianca is a writer from the Pacific Northwest. As a product of the digital age, she likes absorbing large amounts of information and figures she might as well pass it on. When not staring at a screen, she is probably foraging for food outside, playing board games, or harassing somebody with theories about that movie she just watched.
Bianca Crouse
Leave a comment



    Organization Name: NUC Sports

    don’t ever use these guys, they withdraw fees from your account that are not part of your loan, but also when your account is closed you cant unlink your accounts. I had paid off everything and closed accounts and my account stayed linked and they say they have no way to unlink it. plus they keep your information on file even when you ask to remove it. all i want is my information not be up there for consumption by them. They had the gaul to tell me to just change the passwords to all my linked accounts…wow..garbage.

    • Organization Name: NUC Sports
    Ron Reolfi

    Organization Name: IPG Global Marketing

    This is a very underhanded company. They used my personal credit information without my permission. The application process is easy, but customer service is terrible and they admitted that glitches cause connections to not work properly and they don’t know how to fix it.

    • Organization Name: IPG Global Marketing
    steven park

    This Kabbage Company is GARBBAGE,!!!!I applied for a working capital. Have good credit. other lenders willing to fund me 100000.00+My business revenue is over 700000.00 Garbbage is offering me 1000.00 and paid back is 1300.00I gave them Middle fingers!! I think they thought i need to buy toilet paper for my company.They did pull hard credit on my personal and business. Stay away from this Garbbage!.


      This comment refers to an earlier version of this review and may be outdated.

      Jim T

      Horrible, high-fee predatory lender. Absolutely a terrible source of funds given their ridiculous rates. Don’t do it!


        This comment refers to an earlier version of this review and may be outdated.

        Marsha Kelly

        Kabbage is a great place to get money for your business needs fast and if you don’t have great credit. They helped me cover a shortfall due to seasonal fluctuation. Yes, the rates are higher than traditional banks – but I could not get a standard business loan. The monies I borrowed from Kabbage helped me secure a big contract, generate company profit and jobs in my community. Like all things in life and business go in with your eyes wide open. I calculated the costs into my budget and it worked out really well for me. Thanks for a great review.


          This comment refers to an earlier version of this review and may be outdated.

          hillary lando

          I loved kabbage got the money paid my monthly payments paid off early went perfectly everything great.However they will sell your info to other lending institutions and you will still be getting calls from about 50 lenders for 2-3 years are slowing down now slowly. its horrible


            This comment refers to an earlier version of this review and may be outdated.


            ****SCAM ALERT ***Stay away kabbage is so unprofessional and dishonest. I met all the qualifications to get a loan but they said I didn’t meet all of the 300 points that there system puts business applicants through. After reading the reviews I’m glad I didn’t do business with them.


              This comment refers to an earlier version of this review and may be outdated.

              Andrew Draper

              They make it look like a small businesses answer to lending but they’re actually a very aggressive scheme. Screw them! Don’t do it! They aren’t saviors helping you get out of rut.

              You’ll quickly find yourself deeper than you were in the first place. The trouble is that they will happily give you money but they want it back right away.

              Take a thousand dollar loan and guess what, a couple of weeks later it’s due.

              This would work if they stretched it out over a couple months.

              Please don’t be tempted by this. The high APR’s are enough. It’s pretty much a one-way scam. They’re not interested in your well-being AT ALL!

              So bummed! Why not just stretch the advances out a bit? Evil shit.
              They’ll call and email you daily if you’re late… Great that’s what I need when business is slow.



                This comment refers to an earlier version of this review and may be outdated.

                Brent Mansingh

                long story short, you will never receive a single promotional gift card they promise! I borrowed roughly 22,800 from kabbage with incentivized funds totaling a whopping $350. I have payed back my ENTIRE loan balance in full, and would you believe I have not received a single card? I’ve complained and spoken to everyone within customer support. The live channel on their website just closes my window whenever speaking to me. Its quite ridiculous and ultimately a scam. Their are laws out there preventing such things, but thats not going to stop KABBAGE from making their money. I forwarded all emails to their “support@kabbage” and these slime balls have yet to reply! This was back in September of 2015. Please be advised. I am a father who was hoping to buy Christmas Presents for my children. Luckily this was just a means to add to what I was able to provide for them, but this was saddening to me nonetheless. I AM PUTTING THIS HERE FOR YOU! I’m not some crazy person that just leaves off the wall reviews. But when you deceive others and hurt families, you define what it means to be gutless… hurting the American Dream. If for no other reason, for ethics


                  This comment refers to an earlier version of this review and may be outdated.

                  Lisa S

                  So disappointed. Took out a $3800 loan, found out three weeks later our first payment due was $690. Terrible terms, will not do business with in the future.


                    This comment refers to an earlier version of this review and may be outdated.

                  Leave a Reply

                  Your email address will not be published. Required fields are marked *

                  Your Review

                  Comment moderation is enabled. Your comment may take some time to appear.
                  Please read the "User Review and Comment Policy" before posting.