Kabbage - Line of credit
24.00 - 99.00%
Min. Credit Score
Pros & Cons
Financing up to $150,000 available within a few days.
Accepts low credit scores.
Rates are high compared to other online lenders.
Must have online checking or PayPal account to verify cash flow.
Editor's note: Kabbage is currently not accepting new loan applications, but you can sign up for a waitlist on the lender’s website to be notified when it resumes funding. 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.
» MORE: Compare working capital loans
Kabbage loan terms
Kabbage offers business lines of credit from $1,000 and $150,000 with repayment terms of six, 12 or 18 months.
$1,000 to $150,000.
24.00 - 99.00%.
- Monthly fees: 0.25% to 3.5% depending on the term.
- No application fee or origination fee.
- No prepayment penalty.
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 bad credit
Kabbage is a good option for business owners who can’t get approved for a cheaper loan because of bad 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
Kabbage’s annual percentage rates range from 24% to 99%, making its loans some of the most expensive on the market. Avoid using Kabbage to cover the costs of large equipment purchases or renovations; you’ll want to finance those with a long-term, lower-cost loan.
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 offers fast access to financing and has an easy application process.
OnDeck offers a line of credit with lower APRs than Kabbage, but it has higher requirements for credit score and revenue. It also offers 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
Kabbage has issued more than $9 billion in small-business loans since its founding in 2009. The company has been accredited by the Better Business Bureau since 2014 and has an A+ rating.
Kabbage provides financing up to $150,000 with repayment terms of up to 18 months. To apply, small-business owners are required to connect a business checking account, bookkeeping software or payment platform.
Kabbage does not require collateral on its business loans. However, the company does require a personal guarantee, which means you pledge your personal assets to repay the loan if your business can’t.