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United Settlement » Business Debt Relief » Small Business Debt » Kabbage
admin April 3, 2018

Kabbage

Small Business Lenders for the Real World

Kabbage is an alternative business lender that caters to small businesses who generally possess somewhat weaker credit profiles and seek short-term lines of credit. Kabbage offers lines of credit ranging from $2,000 to $250,000 that feature durations of either six or twelve months with annual percentage rates ranging from 24% to 99%.

The average APR for a Kabbage short-term line of credit is 42%. Despite these high interest rates, Kabbage lines of credit can make sense for those small businesses with weaker credit profiles who are in need of a quick short-term infusion of working capital, as many successful applicants are funded the same day of submitting a completed application. Furthermore, the application process itself is quick and easy, lending further appeal to the Kabbage online automated lending platform.

The Kabbage Online Application Process

Unlike traditional small business lenders, Kabbage makes underwriting decisions that are not based primarily on credit score, but on a variety of business data factors including business volume, transaction volume, social media activity and length of time in business.

During the online application process, the small business owner provides electronic access to any number of platforms – including the business’ checking account, PayPal account, and accounting software – as well as less traditional platforms such as eBay, Amazon, Etsy, Square, and others that can provide an overall sense of transactional volume. Kabbage then makes a decision on the amount of credit line to award based on the overall perceived financial strength and stability of the small business.

Kabbage Requirements and Client Statistics

Though Kabbage is not particularly credit score sensitive, it does require that the small business owner possess a FICO score of 500 or higher, with a typical client FICO score checking in at 640 or higher. Though Kabbage does not depend solely on a FICO score in determining whether to grant access to a line of credit, it will utilize credit scores as a benchmark in determining rates and terms.

Other minimum requirements for the small business seeking a line of credit include it having been in business for a minimum of twelve months, a business checking account balance of $2,500, and an annual revenue figure of at least $50,000, or $4,200 revenue per month for the most recent three months. Typical clients, in fact, show an annual revenue level exceeding $500,000, with many utilizing their lines of credit for purchases of equipment and inventory.

fico-score

Kabbage Company Profile

Based in Atlanta, Kabbage began lending in May 2011, and has now extended more than $4 billion in credit lines to over 130,000 small business customers. Starting in 2016, Kabbage exceeded $1 billion in annual credit lines awarded. Also in 2016, Kabbage was named to CNBC’s annual Disruptor 50 List of forward-thinking and ambitious companies and named to the Inc.

500 List of the United States’ fastest-growing private companies for a second consecutive year. These accolades were then followed in 2017 by Kabbage ranking 10th on KPMG’s Fintech100 list, 59th on Entrepreneur’s 360 List of the best entrepreneurial companies in America, and #121 on Deloitte’s Fast 500 list.

Kabbage Lines of Credit

Kabbage awards lines of credit of up to $250,000 to small businesses. Repayment is made automatically on a monthly basis, with each draw made against a line of credit considered a separate loan with either a six or twelve month term. Though Kabbage does not charge origination fees, it does charge monthly fees of 1% to 10% of the remaining loan balance, and these are front-end loaded. For example, for loans with a six month term, fees are assessed at between 1.5% to 10% for the first two months, and 1% thereafter.

For loans with a twelve month term, fees are assessed at 1.5% to 10% for up to the first six months, and 1% thereafter. Since the majority of fees are paid near the beginning of the loan term, even though Kabbage does not charge a prepayment penalty for paying the loan off in full prior to the end of its term, the financial benefit that would ordinarily accrue to the borrower through prepayment is substantially reduced.

Kabbage does not require a personal guarantee. This means that personal assets are not at risk in the event of default. However, Kabbage will file a UCC lien against a small business that has been awarded a credit line, implying that the small business and its underlying assets serve as a form of collateral. Furthermore, Kabbage does not report to business credit bureaus or personal credit bureaus. This means that even when a small business makes timely, regular payments against its Kabbage short-term credit line borrowings, this will not aid in building the business’ credit score and profile.

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Based on 377 reviews.
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Annette Huggins

March 14

That when it seems like nobody can help United will.

This was a great experience for me. I am just starting but Madelene Gallon made me feel like we were friends for years. She tried to make me feel that she would help me and make sure I got the best deal...

Kiirstin

March 01

Kind and caring

Had been searching for a while for a company I could trust to get me out of crippling debt. Really didn’t think it was possible. Spoke to Ben at United Debt and he assured me that not only was it possible,...

Kiirstin

March 01

Kind and caring

Had been searching for a while for a company I could trust to get me out of crippling debt. Really didn’t think it was possible. Spoke to Ben at United Debt and he assured me that not only was it possible,...

Dylan

February 28

Quick, easy assistance!

I've been working with Ben at United Debt to help me organize and get out of debt for once - I've been dealing with debt for ages and Ben showed me some simple ways to begin dealing with things to keep...

Takota Carrie

February 14

I need help

I really appreciate

JONICA Amber PIRON

December 21

Great!

Renika went above and beyond today to help me. She is wonderful to work with! Thank you again Renika for all of your help today! Happy Holidays to you!

Jayvon

December 20

Paying back

They where great listeners

Shawn abetha

December 14

Everything

Thanks

Robert Phillips

November 23

Do your home eork

Paid several thousand dollars and nothing done. Ended up settling 90%by myself. This is a preatory company. So do your homework. This will never post.

Dm

November 18

Customer service is truly helpful

Renika was so helpful. My account was paid off but I kept receiving notifications. She cleared up the situation.

Jose Rosa

November 16

Great Customer Service

Renika did a wonderful job handling my questions and transactions. She is very patient on the phone and took care of my needs accordingly.

Russ

November 03

Very helpful

Renika did a great job in answering all of my questions in a timely manner. She was polite and friendly. Keep her on the payroll.

Anthony Desoto

October 31

What's Important to me is United Settlement Costumer service !

United Settlement Costumer service is Amazing Everyone is Professional . I am so happy choosing them with my card Debt. thank you all for helping me out .

Ri cky

August 23

That this company has integrity!

A responsive company that keeps it clients up to date and fully informed. I like the fact that I can send them a text and be guaranteed an answer within 24 hrs.

Jerry Bolandis

June 04

Professional and focused on facts and truth not hype. Excellent. We want to know facts.

Great work very professional and great updates. Communication is excellent.

janice head

October 25

trust them

Excellent. Also each time i call there they treat me with respect even though they are probably thinking jerk . You sure have made mess of your life. but they have been taught to smile smile smile. this...

Scott W O'Neill

August 01

Thanks for all your help and negotiations.

Thanks for the update! I have faith in you guys and will continue my payments. Thanks for all your help and negotiations.

Cassandra Robinson

July 30

That A Settlement Was Entered.

I Absolutely Love You All At United Settlements. You All Have Saved My Credit Solutions. I Would Refer Everyone To You Services.

Mildred Yvonne Sherron

July 16

The results of the settlement attempts.

So far, I have found United Settlement more than satisfactory. Very conscientious and very efficient in providing a service in debt settlement. Thank you and all the members of your team who are assisting...

Diana Cardona

July 16

Tough Financial Hard Times During Covid-19

I signed up with United Debt Settlement because of large credit card debts, which had taken a financial toll on my credit. UDS has an outstanding reputation assisting clients like me achieve financial recovery...

Business Debt Help

Sometimes, even with the best of intentions, a small business owner can run into trouble after securing a high APR, short-term line of credit, such as those that Kabbage offers. If you are currently burdened by high levels of business debt, the process of pursuing debt settlement may make sense for you and your small business.

Debt settlement takes place when a debtor successfully negotiates a payoff amount for less than the total balance owed on a debt. This lower amount is agreed to by the creditor and is fully documented in writing. Though creditors are under no legal obligation to accept debt settlement offers, negotiating and paying lower amounts to settle debts is far more common than you may realize.

United Settlement and Kabbage

Kabbage is in the small business loan marketplace. At United Settlement, we are proud to help those small businesses truly in hardship. We do not deal with businesses that are not already behind on payments and / or on the brink of closing shop. Our core values, integrity, and ethical approach helps us maintain strong working relationship with juggernauts such as Kabbage.

Our experienced debt settlement professionals have successfully negotiated business debt settlements with Kabbage for clients who truly were facing serious financial hardship and stress that have resulted in large saving the total balance owed. At United Settlement, our experienced business debt settlement specialists possess past relationships with Kabbage and more small business lenders.

Our team has an expert level understanding small business landscape, we know when a business is facing hardship and can help get you to financial freedom. See if you qualify for small business debt relief.

Kabbage FAQs

How can Kabbage help settle business debt?

Because Kabbage is an online alternative lender to small businesses with somewhat weaker credit profiles, successful applicants can quickly receive a short-term infusion of working capital that can then be deployed to pay off a separate debt settlement.

How does Kabbage build business credit?

For better or worse, Kabbage does not report repayment behavior to business credit bureaus or personal credit bureaus. Their website does offer insights into general steps that can be taken by business owners to help build business credit, but Kabbage loan repayment behavior will not play a role in building business credit.

What credit score do you need for Kabbage?

Kabbage does not depend solely on FICO scores in determining whether to grant access to a line of credit, although it will utilize credit scores as a benchmark in determining rates and terms. Kabbage requires that a small business owner possess a FICO score of 500 or higher, with a typical client FICO score checking in at 640 or higher.

Is Kabbage a legitimate lender?

Kabbage is a legitimate alternative business lender that caters to small businesses who generally possess somewhat weaker credit profiles and seek short-term lines of credit. Kabbage began lending in May 2011, and has now extended more than $6.5 billion in credit lines to over 170,000 small business customers

How do I use my Kabbage line of credit?

Typical Kabbage clients show an annual revenue level exceeding $500,000, with many utilizing their lines of credit for purchases of equipment and inventory.

How do Kabbage loans work?

Kabbage awards lines of credit of up to $250,000 to small businesses. Repayment is made automatically on a monthly basis, with each draw made against a line of credit considered a separate loan with either a six or twelve month term. Kabbage charges monthly fees of 1% to 10% of the remaining loan balance, and these are front-end loaded. For example, for loans with a six month term, fees are assessed at between 1.5% to 10% for the first two months, and 1% thereafter. For loans with a twelve month term, fees are assessed at 1.5% to 10% for up to the first six months, and 1% thereafter. Kabbage does not require a personal guarantee. This means that personal assets are not at risk in the event of default. However, Kabbage will file a UCC lien against a small business that has been awarded a credit line, implying that the small business and its underlying assets serve as a form of collateral.

How do you get approved for Kabbage?

Kabbage makes underwriting decisions based on factors such as transaction volume, social media activity and length of time in business. During the online application process, the small business owner provides access to the business’ checking account, accounting software, Paypal account, and less traditional platforms such as eBay, Amazon and Square that can provide an overall sense of transactional volume. Kabbage then makes a decision on the amount of credit line to award based on the perceived financial strength and stability of the business.

Does Kabbage report to credit bureaus?

Kabbage does not report to business credit bureaus or personal credit bureaus. Therefore, when a small business owner makes timely, regular payments against Kabbage short-term credit line borrowings, it does not aid in building the business’ or business owner’s credit score and profile.

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    Clients who stay according to debt relief program can realize approximate savings of 50% before fees, or 25% including fees, over 24 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for reasons such as: their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period. We do not assume consumer and/or business debt, provide tax, bankruptcy, accounting, legal or credit repair services/ advice. Our program is not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. If you have any additional questions please contact us. NMLS ID: 1947026
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