Kabbage Small-Business Loans: 2021 Review

Kabbage offers small-business loans and business lines of credit with an easy online application process.
Jackie ZimmermannJul 14, 2021

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Our Take

Kabbage - Line of credit

Kabbage - Line of credit

Est. APR

9.00 - 36.00%

Min. Credit Score


Pros & Cons


  • Financing up to $150,000 available within a few days.
  • Accepts borrowers with a minimum credit score of 640.


  • Must have online checking or PayPal account to verify cash flow.

Full Review

Editor's note: Kabbage is currently not accepting new customers, but you can sign up for a waitlist on the lender’s website to be notified when that changes. Kabbage was acquired by American Express Co. last year. For similar financing, consider Kabbage competitors.

Alternative lender Kabbage offers fast access to working capital.

Kabbage is a good small-business loan option for borrowers who:

Don’t have perfect personal credit: While underwriting your loan, Kabbage focuses on less traditional information like banking, accounting and e-commerce data. That makes it a good fit for business owners with rocky credit histories.

Need cash fast: With an online application that can be completed in minutes, you can be approved for a line of credit and funded within a few days, at most.

Prefer a short repayment period: Kabbage offers loans of up to $150,000 with repayment terms of six, 12 or 18 months.

Are existing customers: As of July 2021, current Kabbage and American Express customers can apply for funding from Kabbage.

Kabbage loan terms

Kabbage offers business lines of credit from $1,000 and $150,000 with repayment terms of six, 12 or 18 months.

Loan amount

$1,000 to $150,000.

APR range

9.00% - 36.00%


- Monthly fees: 0.25% to 3.5% depending on the term.

- No application fee or origination fee.

- No prepayment penalty.

Repayment terms

Six, 12 or 18 months.

Reasons to use Kabbage

Fast access to cash

Kabbage is a good option for business owners who need cash immediately and don’t mind paying higher rates for the speed. The application process doesn’t require paperwork; instead, you simply connect a business checking account, bookkeeping software or payment platform such as PayPal. You also can give the company access to your other accounts, such as QuickBooks, Xero, Etsy, Amazon, eBay or Square.

Available to business owners with fair credit

Kabbage is a good option for business owners who can’t get approved for a cheaper loan because of their credit. To make an initial lending decision, determine your credit limit and set your fees, Kabbage primarily considers data from the accounts you link, your average monthly revenue and the number of years you’ve been in business.

Where Kabbage falls short

Fee structure

Kabbage charges a monthly fee each month that you have an outstanding balance. This fee varies by loan term and is in addition to your monthly loan principal payments.

  • Six-month term: 0.25% to 3.50%.

  • 12-month term: 0.25% to 2.75%.

  • 18-month term: 0.25% to 2.50%.

If you like Kabbage, you may also like OnDeck

Like Kabbage, online lender OnDeck has an easy application process. OnDeck offers a fast application process, lines of credit of up to $250,000, and term loans, which are a good option for expansion.

For more details on how they compare, read our Kabbage vs. OnDeck comparison review.

Compare business loans

If you’d like to compare loan options, NerdWallet has a list of small-business loans that are best for business owners. All of our recommendations are based on the lender’s market scope and track record and on the needs of business owners, as well as rates and other factors, so you can make the right financing decision.

Frequently asked questions