Kabbage Review

Advertiser Disclosure
Written By
I. Mitic
October 14, 2022
Some or all of the products/services listed on this page are from our affiliate partners from which we receive commissions. This, however, does not influence the evaluations in our reviews. Learn more by reading our Advertiser Disclosure.

The key to success in any business is the ability to maintain a steady cash flow. The majority of businesses crash and burn simply because they run out of money. Kabbage is an online lender that understands you don’t always have the luxury of waiting for weeks to get a loan. That’s why there is no shortage of Kabbage reviews on the internet praising the company’s loan approvals.

Loan Amounts:
$2,000 - $250,000

No origination fees or prepayment penalties

Visit Website

Fortunly Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

$2,000 - $250,000
6-month loans: 2-9%, 12-month loans: 4.5-18%, 18-month loans: 6.75-27%
No origination fees or prepayment penalties
Time varies
1 year
pros thumb up Strengths
  • Modest loan requirements
  • Suitable for fair credit scores
  • No prepayment penalties
  • Free loan calculator
  • Free business revenue analysis
pros thumb up Weaknesses
  • Higher rates
  • Front-loaded fee structure
  • No long-term financing

Kabbage Overview

Kabbage is an online lending company that offers business loans and lines of credit to small businesses. In 2020, the company was acquired by American Express, and has since introduced a bunch of new programs like Kabbage Funding, Kabbage Payments and Kabbage Insights, which is a free automated tool that allows you to keep track of revenue and cash flow.

Many of the users applauded the speed of approval in their Kabbage loan reviews. The company uses an automated system that processes all your information, and if you are eligible, your loan is approved rather quickly. When it comes to credit score requirements, you are advised to have a credit score of at least 640.

Kabbage primarily deals with lines of credit. You pay interest only for the amount you draw, and each time you take it, it’s considered a separate loan. You can choose to repay it in 6, 12, or 18 months.

How does Kabbage compare to other business lenders?

Kabbage Logo
APR Range


Min. Credit Score


LoanBuilder Logo
APR Range

24.83% - 49.94%

Min. Credit Score


OnDeck Logo
APR Range

9% - 98%

Min. Credit Score


Types of Financing Available

Kabbage Line of Credit

Instead of handing out one-time loans, Kabbage gives its clients access to ongoing lines of credit. You gain access to a pool of funds of up to $250,000, and you take the amount you need. The Kabbage line of credit reviews reveal that every time you withdraw any funds from the account, it’s considered a new loan by the issuer – American Express.

You get to choose whether you want to repay it in 6, 12, or 18 months. But the availability of options depends on the applicant, and not everyone gets the same payment terms.

Application Process

The main reason why Kabbage is able to approve loans so fast is its reliable automated application process. There are three steps:

Basic business information

You provide business information in accordance with the Kabbage loan requirements. The clearer you are in your application, the faster the process.

Financial review

The lender requires access to your financial statements and bank accounts (in a read-only mode), and the company will also do a hard pull of your information to make sure everything is in order.

Identity verification

Finally, they’ll need to verify your identity through official documents. If you’re approved, you get access to the funds in about ten minutes or less. The entire application process is free, and you are in no way obliged to take the funds being offered.

Kabbage funding reviews also reveal that applications for over $200,000 need to be done manually, which might take a couple of days.

What information do I need to apply?

Documentation requirements depend on who the applicant is, but you should have the basics covered:

  • Business name, type, and industry
  • Contact information
  • Bank and credit card statements
  • Tax returns
  • IDs with pictures
  • Access to online accounting apps

Although Kabbage is a reliable, registered lender that won’t abuse any of the information you provide, make sure to give read-only access to all your financial programs. Most of these popular apps like Quickbooks or Xero already have modes created specifically for these purposes.

In-depth presentation of features

As you’ve probably noticed from the Kabbage reviews online, this lender doesn’t provide long-term deals. The most you can ask for is $250,000, and the maximum loan term is 18 months, with a minimum credit score requirement of at least 640. If your application is approved, the cash is deposited into your bank or PayPal account.

Ultimately, the biggest drawback is the Kabbage interest rate. The fees can take a sizable chunk of your monthly budget, so it’s important to know what you’re getting yourself into.

One thing you don’t need to be concerned about is the company’s reputation. Kabbage reviews on BBB are overwhelmingly positive, and the lender holds an A+ rating. Kabbage got similar feedback on other consumer review websites, including TrustPilot where it has an excellent score based on over 6,500 reviews.

Loan amount and APR details

The minimum amount you can borrow from Kabbage is $2,000, while the maximum goes up to $250,000. This is a decent figure for a short-term line of credit. As part of our Kabbage loan review, we feel it is important to advise you to avoid borrowing the maximum amount because anything over $200,000 requires manual processing.

Before choosing the loan, think whether you really need that extra $50,000 that will slow things down by at least one day.

Although there’s no origination or prepayment penalties, Kabbage’s interest rates are front-loaded. That means you get all the heavy rates up to 10% in the first few months, so you pay off most of the interest early on.

Eligible and non-eligible businesses

The Kabbage loan was created to attract as many businesses as possible, especially those that can’t get approved elsewhere. This doesn’t mean that your score doesn’t matter, as minimum required credit score is 640.

Kabbage does a hard pull of your information and checks your revenue consistency, cash flow, and the business owner’s consumer credit. It even checks your social media activity to create a full picture. Your business needs to be active for at least a year and have a monthly revenue of $3,000.

One question that always comes up in Kabbage lending reviews is whether you should reapply if you are rejected. The answer is a simple no. With your first application, you’ve created an account with this lender. As such, your business will constantly be checked for eligibility, and you will be contacted if anything’s changes.

Repayment Terms

Since there are only short-term Kabbage business loans, you can expect higher interest rates. These range from 2-9% for 6-month loans, 4.5-18% for 12-month loans, and 6.75-27% for 18-montht loans.

Kabbage customer reviews recommend using the company’s loan calculator to figure out your monthly fees. While the tool is completely free and fairly precise, it only offers an estimate. So treat it more like a recommendation than anything else.

The Bottom Line

There is no doubt that Kabbage’s main virtue is speed. Thanks to the automated process, you get a great value loan within minutes without having to endure a lengthy and complicated application process. It’s money in your pocket when you need it most. The most common complaints found in reviews of Kabbage business loans are about the APR.

Although many of these grievances are legitimate, this is still a reliable service with few requirements.


Is Kabbage legitimate?


Kabbage is a reliable, legitimate company that has been in the business since 2009. The loans you get from this lender are guaranteed by American Express, which acquired Kabbage in 2020, which means that its business lines of credit are issued by American Express National Bank.

What is the interest rate on a Kabbage loan?


According to online reviews of Kabbage loans, the interest rate varies depending on the loan term. For 6-month loans, the interest rate is between 2% and 9%, for 12-month loans it ranges from 4.5% to 18%, and for 18-month loans it is set between 6.75% and 27%. There are no origination fees or prepayment penalties. 

Does Kabbage do a hard pull?


Yes. Kabbage does a fairly detailed check of your account taking various factors into consideration. Since it is a hard pull of information, you can expect your credit score to go down by a couple of points, but this shouldn’t be a cause for concern. It will come back to normal within two years.

What credit score do you need for Kabbage?


Kabbage does demand a minimum credit score, which is set at 640. If your score is even slightly below this you will most likely not get approved for a loan.