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Kabbage Business Loans: 2023 Review

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  Estimated interest rate: Varies by repayment term

  Best for: Business owners looking for a short-term business line of credit

Pros and cons of Kabbage by American Express

ProsCons

  Quick, online application

  Can receive funds between 1 to 3 business days

  No prepayment penalties

  Each draw from the credit line is considered a separate installment loan

  Confusing fee structure

  Requires a personal guarantee

Kabbage by American Express small business loans review

Kabbage is a financial technology owned and operated by American Express. Its only business lending product is a business line of credit, which offers a flexible form of funding you can borrow from as you need.

Who is Kabbage by American Express for?

  • Small business owners with fair to good personal credit. You’ll need a personal credit score of 640 to qualify, so it’s not a good option for businesses with bad credit.
  • Borrowers who need fast funding. Borrowers can receive funds as soon as 1 to 3 business days.
  • Businesses needing additional funding for short-term expenses. Terms range from 6 months to 18 months, making this a good fit for businesses looking for short-term funding.

Kabbage by American Express small business financing at a glance

ProductLoan amountsRepayment termEstimated monthly fee range
Line of credit$2,000 to $250,0006 to 18 months
  • 2% to 9% for 6-month loans
  • 4.5% to 18% for 12-month loans
  • 6.75-27% for 18-month loans

Line of credit

Kabbage offers a business line of credit ranging from $2,000 to $250,000. The term of the credit line can be 6 months, 12 months or 18 months, with fees varying for each. Each repayment term has a specific minimum borrowing amount: $500 is the minimum draw for a six-month term, $10,000 is the minimum for a 12-month term and $20,000 is the minimum draw for a 18-month term. It’s worth noting that each withdrawal from your credit line is treated as a separate installment loan. Kabbage lines of credit come with no prepayment penalties.

Kabbage by American Express borrower requirements

Minimum annual revenue$36,000
Minimum time in business12 months
Minimum credit score640

Kabbage has fairly straightforward borrower requirements when applying for a line of credit. To be eligible, your business will need $3,000 in monthly revenue, be in operation for at least 12 months and have its own checking account. Your credit score and history will be one of the deciding factors for the repayment term available to you and the maximum amount you can borrow will be determined upon approval. A personal guarantee is also required for Kabbage lines of credit.

Required documents

When applying for a business line of credit with Kabbage, required documents to apply include:

  • Business bank account statements
  • Name and address of business
  • Name and home address of the business owner
  • Business industry
  • Business tax ID

Alternatives to Kabbage by American Express

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

KabbageBluevineOnDeck
Minimum credit score640625625
Loan products offeredBusiness line of creditBusiness line of credit
  • Business line of credit
  • Short-term loan
Time to funding1 to 3 business days1 to 3 days or within hours for $15 wire feeCan receive the same business day
Starting interest rates
  • 2% to 9% for 6-month loans
  • 4.5% to 18% for 12-month loans
  • 6.75% to 27% for 18-month loans
6.20% simple interest based on a 26-week repayment term29.90% APR
Maximum loan size$250,000$250,000
  • Business line of credit: $100,000
  • Short-term loan: $250,000
Minimum annual revenue$36,000$120,000$100,000

Kabbage vs. Bluevine

With a minimum credit score of 625 and only six months in business to be eligible, a Bluevine line of credit may be somewhat easier to qualify for than Kabbage. The starting interest with Bluevine is also more straightforward: rates start at 6.20% simple interest for a 26-week repayment term. However, one factor that sets Kabbage’s line of credit apart is the option for an 18-month term; Bluevine lines of credit are limited to 6 or 12 months. The time to funding can be about the same for both Kabbage and Bluevine with one to three business days upon approval.

Kabbage vs. OnDeck

OnDeck offers a business line of credit, too, but unlike Kabbage, OnDeck also offers short-term loans. Both OnDeck products have a starting APR of 29.90%, which is easier to understand that Kabbage’s tiered monthly fee structure. With a minimum score of 625, OnDeck’s credit score requirements are lower than Kabbage’s minimum score of 640. But as a tradeoff, OnDeck’s line of credit only extends up to $100,000.

 

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