Kabbage Business Loan Review

  • Loan Types: B2B Business Lending
  • Availability: UK and USA
  • Securities: Unsecured
  • Loan amount: UK – £1,000 to £40,000; US – $2000 to $100,000
  • Interest: US – 1 to 13.5% fees for the first two months, 1% thereafter; UK – 68% representative APR, 2%-11% fees for the first month, 4% thereafter
  • Overall Rating: Mediocre 2.4 / 5.0

About Kabbage

Kabbage has been expanding out of Atlanta, Georgia since 2009, lending money primarily to web merchants. They were an early American lender to take the loan application process 100% online, where customers can have their credit worthiness established by inputting personal data (not by a credit score). In 2013, Kabbage expanded into the UK.

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Online Lending

A financing option which is performed completely online! Just connect Kabbage to your online accounts in places like eBay and Paypal, and get instant approval.

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Quick Approval

As soon as details are inserted in to your personal online platform, you are able to receive instant approvals for loans.

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One of the largest, veteran companies, in the business, thought the information they provide is confusing, and some clients are unhappy about that.

The Good and the Bad


  • Web-only lending. It’s nice to have a financing option that only considers your online buying and selling behavior in approving your for a loan. No credit score check. Kabbage US has a versatile array of linkable accounts, but UK users are limited to Ebay and Paypal.
  • Near Instant Approval. Because Kabbage determines your credit worthiness using easily accessed digital data, your approval comes fast.


  • Could be expensive in some cases, and it’s difficult to crunch through the numbers to understand how much is actually repaid.
  • Confusing. Everything about Kabbage tends towards the bewildering. More on this later.
  • Many Unhappy Clients

Which Type of Companies do They Apply to?

Many businesses and sole proprietorship may apply. Because Kabbage only considers your online selling behaviour (through Ebay in the UK, and a whole host of web tools in the US) when approving you for a loan, it takes a lot less time than traditional loans.

There is no minimum requirement, as such. Kabbage determines how great a line of credit you can likely handle by analyzing your online transactions. This is a service built for web merchants, so your web cash flow will tell them what they need to know.

Are Bad Credit Businesses Accepted?

Because Kabbage is made to provide loans to web merchants, they accept bad credit businesses by design and necessity. Small web merchants tend to carry a lot of debt. This can damage credit scores badly and make traditional loans all the more difficult to acquire. Kabbage quickly determines how much you can afford to pay back, and issues you this as a potential line of credit to be borrowed against.

Early Repayments & Comparison

There are no early payment fees.

How do they compare with other companies in the industry:

Kabbage is a unique internet lender. They operate much more like a credit card than other non-traditional lending options available on the web. But they’re not a credit card, and consequently they are much more difficult to comprehend and categorize. For instance, each loan is at its most expensive during its first month (UK) or two months (US). The monthly cost drops thereafter to either 4% or 1%, respectively. But the user is required to pay off the loans in the order in which they were taken out. Therefore, if you have a large loan that is 5 months old, followed by a small loan that is 2 weeks old, you are not able to pay off the small, expensive loan until the large, cheap loan is paid off. Can’t pay off your total balance? Kabbage earns high interest on your newest loans until you can. This is the sort of confounding behaviour that infuriates many users. With variable rates and these stringent payment requirements, Kabbage can quickly become a messy money pit for frequent users.

Reputation & Feedback


There is no shortage of people decrying Kabbage’s business model. Their Credit Karma score is a 3.3 out of 5, with 1 and 5 star reviews being the most common. Stories like this are prominent, so users would be cautioned not to bite off more than they can chew with Kabbage. To this reviewer, the whole process seems unnecessarily nettlesome, with due-by dates falling on strange days, and payment rates prioritized in odd ways. Nonetheless, the experiences of many others seems to indicate that Kabbage can work, if a merchant has sufficient cash flow and does not use the service too frequently.

Kabbages success and fast growth has been documented by Forbes and other news sources.

Serving Both UK & US – based business, and in particular web merchants, Kabbage might be one of the easiest and quickest ways of getting financed, but it’s expensive, and many clients are unhappy.

Bottom Line

Kabbage works best for web merchants who have difficulty acquiring financing any other way. But these individuals are also the most vulnerable to default on such a loan. With variable rates and unusual pay-by dates, it becomes very easy for such individuals to rack up late fees and pay even more for their money.

Because Kabbage functions like a revolving line of credit, it has all the same pitfalls of a credit card, but with the stipulation that loans must be paid off in order, regardless of interest rate. New users will nonetheless find that Kabbage’s loan process is fast and convenient. New users would do well to take out only one loan at a time to make sure that the terms and payment schedules are fully understood before proceeding.