What is Kabbage?
Kabbage is a lending program that quickly connects small businesses with capital. Kabbage’s technology platform reviews data generated by dozens of business operations to automatically understand business performance and deliver fast, flexible funding online.
How do my customers apply for a Kabbage line of credit?
Applying is quick and easy and typically takes less than 10 minutes. Kabbage asks for basic information about the applicant and their business. Applicants securely connect their bank information so Kabbage can assess their business without long forms, waiting in line or having to dig up old paperwork. Applicants can also connect other business services such as Intuit QuickBooks, eBay, Amazon, PayPal, Xero and Stripe to give Kabbage the best picture of their business performance. Once Kabbage reviews their application, they may ask them to submit additional information to potentially qualify for an increased line of credit of up to $250,000.
How do I get paid when my customer takes financing?
Once your customer is approved for a Kabbage line of credit, they will receive an email with instructions on how to withdraw funds and pay off their pending invoice. Your client will then be able to withdraw funds to pay you using their preferred process.
Who is eligible for a Kabbage line of credit?
All small businesses can apply for funds through Kabbage. To qualify, a small business needs to be at least one year old with revenues of $50,000 annually (or $4,200 per month over the last three months¹). Kabbage is currently available in all 50 U.S. States and territories.
What are the terms of a Kabbage line of credit?
Kabbage offers the flexibility of a 6- or 12-month loan term, so qualified customers can choose what’s best for their business. After customers apply, Kabbage will inform them if they can select a six-month term, or an optional 12-month term. Eligibility for 12-month loan terms is subject to availability and can change based on underwriting criteria. Changes in future term availability does not affect outstanding loans. A minimum loan of $10,000 is required for 12-month loan terms.
How secure is the Kabbage application?
Kabbage takes customer security very seriously and follows the required information security practices to maintain the integrity of applicants’ information. Kabbage can never see or store bank/data source login information and has no access to save or change bank account data. Kabbage customers have securely connected more than 1.5 million data sources to be automatically reviewed. Kabbage is A+ rated by the Better Business Bureau and are TRUSTe certified for their commitment to customer privacy.
What are the benefits for referring a customer to Kabbage?
With Kabbage, you are empowering your small business customers with a line of credit that they can use whenever they need to pay off an invoice, wherever they are. There is no need to reapply, so qualified customers can use their Kabbage funds over and over on the Invoice2go platform to help you get paid more quickly. A Kabbage line of credit can help your customers pay you on time, and make their loan payments over time so they do not exhaust their own working capital.
Can my consumer clients qualify for loans through this product?
Kabbage lines of credits are for U.S. based small businesses only.
Where is the financing available?
Kabbage is currently available in all 50 U.S. States and territories. We also power automated lending for partnering organizations around the world.
How quickly are installment loans taken from the line of credit funded?
Once a loan is requested and the loan agreement is signed, funds are sent to the account of the customer’s choice. Loans deposited into a PayPal account takes just a few minutes to process. Loans deposited into business checking accounts will take 0-3 days to process, depending upon the bank.
Does Kabbage check credit?
Kabbage performs a one-time hard inquiry during the application process with consent from the applicant. Kabbage does not currently report account activity to personal or business credit bureaus.
What information do you look at to decide if a customer qualifies for a Kabbage line of credit?
Kabbage reviews real-time business information through data sources like business checking accounts, payment processors, accounting platforms and other online marketplaces. This helps determine the financial performance of the business by analyzing average monthly revenue, seller rating, time in business, transaction volume, among other characteristics.
What fees are associated with an installment loan from the line of credit?
There's no separate charge to apply for a line, open an account or even save funds for which you qualified until you need them. Customers pay only for what they take. Fee Rates range from 1.5-10% based on a number of business performance factors. Kabbage loans have a monthly fee for every month there is a balance. Every month, customers pay back 1/6 of the total loan amount (for 6-month loans) or 1/12 of the loan amount for (12-month loans) plus a monthly fee. Each loan is an independent 6 or 12-month installment loan with its own loan agreement and fees.
Who is Celtic Bank?
All Kabbage loans are issued by Celtic Bank, a Utah-Chartered Industrial Bank, Member FDIC.
Where can I go if I have more questions?
Visit www.kabbage.com/i2g or contact Kabbage’s team at 888-986-8263.
- Kabbage can approve you in minutes for up to $150,000 when we are able to automatically obtain your business data and verify your bank account. Lines of credit over $150,000 require a manual review. In some situations, errors may occur during the sign up process, or we may need to send micro-deposits to confirm your bank account for security purposes. If this is the case, it may take up to several days to provide you with access to funding.