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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
| Pros | Cons |
|---|---|
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 |
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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
| Product | Loan amounts | Repayment term | Estimated monthly fee range |
|---|---|---|---|
| Line of credit | $2,000 to $250,000 | 6 to 18 months |
|
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 business | 12 months |
| Minimum credit score | 640 |
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
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| Kabbage | Bluevine | OnDeck | |
|---|---|---|---|
| Minimum credit score | 640 | 625 | 625 |
| Loan products offered | Business line of credit | Business line of credit |
|
| Time to funding | 1 to 3 business days | 1 to 3 days or within hours for $15 wire fee | Can receive the same business day |
| Starting interest rates |
| 6.20% simple interest based on a 26-week repayment term | 29.90% APR |
| Maximum loan size | $250,000 | $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.