Sometimes, our business needs a little financial push to get the ball rolling, and what better way to gain access to funds than through a small business loan? Of course, you can’t get a loan from anywhere. You need to find a reliable source where you can easily request a loan with no worries. That is why in this review, we’ll detail everything you need to know about the lending business known as Kabbage.
Is it the service for you, and what are the pros and cons? We’ll answer all these important questions below.
What Is Kabbage?
Kabbage was founded in 2009, and it’s essentially a lending company for qualified businesses. Using Kabbage is almost effortless thanks to how convenient it is. In fact, it’s difficult to find a similar business that is as straightforward. Those who want to borrow through Kabbage can get a borrower’s credit of up to $250,000 with varying repayment terms, namely 6, 12, or 18 months.
Of course, no business is perfect, though, and Kabbage has its fair share of flaws too. We’ll delve deeper into this later on.
What Are the Services Offered?
Kabbage has two main services:
- Payment Services: This service has to do with card and invoice processing, as well as custom payment URLs. If you’re looking for this kind of service, you may want to check out what Kabbage has to offer.
- Business Lines Of Credit: This is basically the mean feature of Kabbage. Through its business lines of credit, businesses can borrow or loan funds from Kabbage with interest upon payment.
Kabbage Application Process
Kabbage’s application process can be done online, which is great because you don’t have to go to a physical establishment just to sign some forms. When you apply for a loan, Kabbage will ask you to provide information about yourself and your business. Not only that, you’ll be required to provide access lender read-only access to the bank account you use, along with other similar channels like PayPal and Quickbooks. This is a necessary step because Kabbage needs this information to determine what your monthly fee is along with your maximum credit line.
Kabbage will then use your credit history to help determine the risks involved as well as verify your identity. From there, rates and fees involved will be decided by Kabbage’s algorithm. But the process may take longer than expected if Kabbage has a difficult time trying to verify who you are.
Once everything has been approved, you can go ahead and start requesting funds from Kabbage.
The Pros of Using Kabbage
Fast Application Process
It doesn’t take a lot of time and effort to apply for business funding through Kabbage, and many customers are happy with this fact. Just follow the application process mentioned above all while in the comfort of your own home.
Good Customer Service Experience
Many customers were generally satisfied with the service Kabbage’s customer care team provided. Having a good customer service team is always a huge plus for any business, as they can make or break your company depending on how competent they are.
Fast and Easy Access to Cash
Once approved, customers have easy access to funds whenever they want.
The Cons of Using Kabbage
Unfortunately, requesting a loan from Kabbage can get a bit pricey. After all, the fees can have an APR around 24% and 99%, which isn’t ideal for many. If you’re worried that the cost may be too high for you, it may be best to look around for other options.
Sudden Reduction of Borrowing Limit
Since Kabbage has all the data and information regarding your cash flow, it has an idea whenever things go awry for your business. When this happens, there’s a chance that Kabbage will reduce your borrowing limit. Worst case scenario is that the company will cut you off completely.
Sadly, not every applicant will be approved, even if they meet Kabbage’s requirements. After all, the company checks other factors and information, and depending on what they find, you could be rendered ineligible.
There are many reasons why we—and many other customers—like Kabbage’s services. The application process, for one, is quick and almost effortless. You don’t even have to leave your home to apply! However, you have to consider the fees you have to shoulder if you request funds from them. If you don’t mind the high fees, then we don’t see why you shouldn’t try out Kabbage. But before making your final decision, it’s probably best if you have a quick look at other options and alternatives.