Kabbage business loans offer fast financing, but their monthly fee structure can be confusing compared to other online lenders.
Kabbage is an online lending platform that offers small business loans to borrowers with a FICO score of 640 or higher. Acquired by American Express in 2020, Kabbage is known for its streamlined application process where borrowers can link their corporate checking accounts and, in most cases, receive a decision within minutes.
While you can sign up for Kabbage’s business checking account, business owners are not required to use that account to qualify for funding.
Kabbage is best for borrowers by:
You don’t have perfect personal credit: While you’re taking out your loan, Kabbage focuses on less traditional information like banking, accounting, and e-commerce details. This makes it a good option for entrepreneurs with shaky credit histories.
- You need cash quickly – With an online application that can be completed in minutes, you can be approved for a line of credit and funded in days, at most.
- Prefer a short repayment term: Kabbage offers loans of up to $ 150,000 with repayment terms of six, 12, or 18 months.
- They are existing customers: Starting July 2021, only current customers of Kabbage and American Express can apply for funds from Kabbage.
Kabbage loan features
Kabbage offers business lines of credit from $1,000 to $150,000 with repayment terms of six, 12 or 18 months.
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Instead of traditional interest, Kabbage charges monthly fees of 0.25% to 3.5% depending on your loan’s term. According to a Kabbage representative, these fees equal an estimated APR of 9.00% –Â 36.00%.
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No application fee, account maintenance fee or origination fee.
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Late payment and unsuccessful payment fees may apply based on the information in your loan agreement.
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As fast as the same day. May take up to three business days for funds to process, depending on your bank.
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Kabbage loan requirements
Kabbage’s minimum borrower eligibility conditions include:
Credit score: 640 or higher.
Duration of activity: one year or more.
Annual sales: $ 50,000 or more.
You must be able to link a bank account showing business income to be eligible for a Kabbage line of credit.
How to apply for a loan from Kabbage
You can apply for a Kabbage line of credit online. First, you will need to create and log into your Kabbage account. Then you will connect your professional bank account and all additional accounts to the Kabbage platform.
Kabbage will also ask you for basic information about you and your business, including:
Your name, home address and telephone number.
The name, address and telephone number of your business.
Your industry.
Your corporate tax code.
Your social security number.
Before submitting your application, Kabbage will ask you to accept a strong draw on your credit.
If Kabbage can verify your information, you should get a decision almost instantly. If your request requires further consideration, a decision may take four to seven business days.
If you are approved for a Kabbage line of credit, you will receive a loan agreement that sets out the amount of the line of credit, the length of the term, and the monthly fee. Kabbage will also provide a comparable APR so you can get a feel for the cost of the line of credit. You will need to sign a personal guarantee as part of the loan agreement.
WEB SITE : https://www.kabbage.com/
