Kabbage Business Loans Review

Fast and flexible, Kabbage is a great option for businesses with shaky credit scores.

Kabbage offers fast, flexible, and secure loans for small businesses. Although Kabbage loans may not have the most competitive rates in the game, it can be a good option for small businesses with poor credit or those who need funds quickly. Kabbage also offers loans with relatively short repayment periods, ranging from six to 18 months. While Kabbage business loans may present a good deal for some, borrowers should always shop around to ensure that they’re getting the best rates possible for their particular situation.

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In this article

    Kabbage business loans at a glance

    LenderLoan AmountAPRTermsKey Benefits
    KabbageUp to $150k9% – 36%6 – 18 monthsAccepts borrowers with poor credit

    What we like about it

    One of the main upsides to Kabbage is that it is fast, flexible, and convenient. It finances loans up to $150,000, with funds usually available within a few business days. Businesses can even have funds deposited in as soon as one business day if using a PayPal account. For businesses that need cash fast, this ease and flexibility is definitely a point in Kabbage’s favor.

    Kabbage also accepts borrowers with low credit scores, which can be a boon for businesses with shaky credit histories. Instead of basing eligibility on credit score, Kabbage evaluates risk based on a combination of factors, including annual and monthly revenue and cash flow.

    Another positive aspect of Kabbage is that the application process is fast and simple, making Kabbage an accessible, approachable lender for the average borrower. Kabbage is light on paperwork, and only requires enough financial information about your business in order to determine your eligibility. Kabbage also doesn’t charge a prepayment penalty, meaning that you’re free to pay back your loan in its entirety at any time.

    Things to consider

    Although it is fast and flexible, Kabbage does have higher rates than many other lenders. In many cases, borrowers may be able to find more favorable terms elsewhere, making Kabbage a less than ideal option for those with decent credit. In most cases, Kabbage should be used by borrowers unable to secure better terms with other lenders.

    Kabbage also offers short repayment terms of 6 to 18 months. While some borrowers may appreciate a short-term loan, others may be better served by longer terms with more flexibility. Kabbage also isn’t the best choice if you’re looking to finance large purchases, such as a move or renovation, that you might need to pay off over a longer period of time.

    Kabbage also has a complicated fee structure in which borrowers pay a large portion of the total fees over the first few months. Fees can range from 1% to 10% of the total amount borrowed for the first few months, and then 1% of the total amount borrowed thereafter.

    What you need to know

    Kabbage can be a decent alternative for small businesses with poor credit looking for a short-term loan. The lender offers loans of up to $150,000 and accepts borrowers with less than stellar credit provided they have a steady stream of income. With an APR range of 9% to 36%, Kabbage has less competitive rates than many other similar lenders and presents a more expensive choice for most borrowers. Term lengths for loans tend to be on the shorter side, with a range of six to 18 months. Additionally, businesses must have been in operation for at least one year in order to be eligible for a loan.

    Overall, while Kabbage provides fast, flexible small business loans for those without good credit, many borrowers may be able to find better rates elsewhere.

    Fees and penalties

    Kabbage charges a monthly fee to borrowers, which varies depending on the size of the loan and the length of the term. Fees range from 1% to 10% depending on a variety of factors. In most cases, fees are front-loaded towards the beginning of the loan repayment period and taper off toward the end as the loan balance becomes smaller.

    Kabbage doesn’t charge a prepayment penalty, so borrowers are free to pay off the remaining balance on their loans at any time. However, since many of the fees are charged during the first few months of the loan’s term, paying off the loan early may not save borrowers much money.

    How to apply for a Kabbage business loan

    The application process for a loan from Kabbage is entirely online. The application is fairly straightforward and only takes a few minutes to complete. Be prepared with some basic information about your business, including your name, address, and access to bookkeeping accounts. Borrowers should be aware that an application for a loan from Kabbage does trigger a hard pull on your credit report. Here’s how to apply for a loan with Kabbage:

    1. Create an account.
    2. Provide information about your business including your business name, address and phone number.
    3. Provide additional information including your industry and annual revenue.
    4. You’ll also be asked to provide personal information including your name, address and social security number.
    5. Then, connect an account that demonstrates your yearly income. Options include Bank of America, Wells Fargo, PayPal, QuickBooks and more.
    6. Kabbage will use your financial information as well as a hard credit inquiry in order to determine whether or not you’re eligible for a loan.

    Alternatives to Kabbage

    While Kabbage is a great option for borrowers with poor credit who need cash fast, there are a variety of other options that may offer better rates.


    OnDeck has great interest rates and a quick turn around, but you’ll need a good credit score to take advantage of those perks.

    APR Range
    Loan Amount
    Up to 18 months
    2.8 / 5.0
    SimpleScore OnDeck 2.8
    Median APR 1
    Loan Amount 3
    Product Variety 2
    Resources 5
    Fees 3

    OnDeck is an alternative to Kabbage that also offers a quick and easy application process. It offers better rates than Kabbage, but also have more stringent requirements when it comes to credit score and revenue. OnDeck is designed for borrowers with fair to good credit, and in many cases, cash may be available within one business day. However, OnDeck requires frequent payments on a daily or weekly basis to pay back a loan.

    OnDeck Disclosure

    *There are some industries we cannot serve (see list of restricted industries), as well as some industries and states impacted by the Coronavirus to which we are temporarily not lending. In addition, OnDeck does not lend to businesses in Nevada, North Dakota or South Dakota. OnDeck is no longer accepting new Paycheck Protection Program (PPP) loan applications. Registration terms and conditions apply. Instant Funding registration and withdrawals are currently supported from your desktop and the OnDeck mobile website. They are not currently supported in the OnDeck mobile app. Occasionally, transfer may take up to 30 minutes to complete due to potential Visa & bank processing lags. This benefit is available at no additional cost with a vast majority of major banks participating. Instant Funding is available for transactions between $1K-$10K.

    Funding Circle

    While Funding Circle doesn’t have revenue limits, you’ll need to be in business for at least two years to qualify.

    APR Range
    Loan Amount
    3 months–10 years
    3.2 / 5.0
    SimpleScore Funding Circle 3.2
    Median APR 3
    Loan Amount 4
    Product Variety 1
    Resources 5
    Fees 3

    Funding Circle is another alternative to Kabbage that offers low rates. Funding Circle is often able to offer larger loan amounts but doesn’t offer a line of credit. The company has competitive rates and no minimum revenue requirement, which makes it an attractive option for small businesses. However, Funding Circle does require that you’ve been in business for at least two years, so newer businesses may not qualify.

    PayPal Working Capital

    PayPal Working Capital is only available to businesses that process sales through PayPal, so businesses who use another payment processer may have to look elsewhere.

    APR Range
    Loan Amount
    Based on PayPal account
    3.7 / 5.0
    SimpleScore PayPal Working Capital 3.7
    Median APR N/A
    Loan Amount N/A
    Product Variety 2
    Resources 5
    Fees 4

    PayPal Working Capital is another good option when it comes to small business loans. However, it’s only available to businesses that process the majority of its sales through PayPal, so businesses who use another payment processer may have to look elsewhere. The lender does accept applications from borrowers with poor credit, and funds can often be transferred to your account in as soon as a few minutes.



    We’ve created the SimpleScore to help you objectively compare products and services here at The Simple Dollar.

    Our editorial team:

    • Identifies five factors to compare across each brand
    • Determines the rating criteria for each factor
    • Calculate an average of those five factor scores to get one SimpleScore™

    We break down each of these five factors and their rating criteria for our review of the best auto loan companies of 2020.


    Why do some brands have different SimpleScore on different pages?

    Some brands offer a variety of financial products, which is why they have different SimpleScores on different pages. We rate individual products that brands offer — not the brand as a whole. 

    For instance, in our American Express personal loans review we rated the company a 4.25 out of 5 based on rates, loan amount, customer satisfaction, customer support and fees. In our review of the best small business loan rates, American Express earned a 3.4 out of 5 SimpleScore based on its business loan product. By tailoring our SimpleScore to each financial solution, we’re able to give you a more accurate view of each brands’ services and how they compare to competitors’ products.

    Median APR

    Lenders with a lower median APR are awarded higher scores — because even if you’re APR is average, your business is not.

    Maximum loan size

    Lenders that dole out loans with high maximums are also rewarded with higher scores. It takes money to run a business, and businesses need access to as much capital as it takes.

    Product variety

    Need more than just a business loan? Lenders that offer more than one type of financial product for businesses score higher than others that don’t.

    Educational Resources

    We gave out higher scores to lenders that have the following subjects covered in their blogs: loans, marketing, employee and staff, and credit or finance resources.


    Fees can add up fast and eat into operating costs –– that’s why we give a higher score to lenders that have fewer fees.

    Margaret Wack

    Contributing Writer

    Margaret Wack writes about personal finance, health, wellness, arts and culture, among other topics.

    Reviewed by

    • Courtney Mihocik
      Courtney Mihocik
      Loans Editor

      Courtney Mihocik is an editor at The Simple Dollar who specializes in personal loans, student loans, auto loans, and debt consolidation loans. She is a former writer and contributing editor to Interest.com, PersonalLoans.org, and elsewhere.