Kabbage Small Business Loans Review 2023

Whether you need quick capital to sustain your business or money to expand, Kabbage Business Loans offer term loans to serve business owners with a low credit score who may not get funding elsewhere.

In this review, we’ll go over the details of Kabbage's business loans to help you decide if Kabbage’s loans offer the right features for your business.

Recommended: Visit our comprehensive guide on small business loans or read our review of the best small business loans.

Kabbage's Business Loans

Our Approach:

To help match your business with the right loan, we compared Kabbage’s loan offerings and matched those to the businesses that would best benefit.

In this review, we’ll cover the types of loans Kabbage offers to help you decide if Kabbage is the right lending partner for your small business.

Selecting the best small business loan for your company comes down to three things:

  • Type of business you have
  • Needs of your business
  • What you want for the future of your business

BlueVine Business Loans Summary:

Kabbage sells term loans to business owners with low credit scores. Kabbage has been in business for over 11 years, lending out over $6.5 billion.

  • Term loans are the best business loans for companies that need a specific amount of money to fund their business needs. Kabbage offers term loans up to $250,000 with rates as low as 24%. You can also get approved in a few days when you apply, and applying for a term loan only takes ten minutes on their website.


  • Low credit score approval
  • Money can be used for most business expenses.
  • Free up your cash
  • Transparent fees
  • Easy approval
  • Don’t need collateral


  • Need to be in business 12 months
  • Poor fee structure (no benefit to paying the loan off early)
  • High interest rates compared to other lenders
  • Short term financing only - you must repay in 18 months or less
  • Poor customer service

Recommended: Read our guide on how to build business credit.

How to Apply for a Kabbage Business Loan:

  1. Apply online at Kabbage.com in 15 minutes providing basic details about your business and customers.
  2. Get approved by Kabbage in a few days.
  3. Get funded a few days later.

UPDATE: Kabbage is currently not accepting applications for loans.

Types of Kabbage Business Loans

Kabbage offers business term loans. A term loan is the equivalent of a traditional bank loan where you receive a certain amount of money with specific repayment terms.

Kabbage Term Loan

Kabbage is an online technology company and lender whose mission is to lend money to business owners with low credit scores. Their primary focus is on helping struggling businesses who aren’t well established and established businesses that need funding.

Lowest rate: 24% per week

Loan sizes up to: $250,000


  • Free up cash flow
  • Quick approval
  • Up to 18-month repayment plan


  • 560+ credit score
  • 1+ year in business
  • Minimum of $10,000 per month in gross revenue
  • Business checking account

How to Apply:

  • Visit Kabbage.com and click “Get Started.”
  • Provide basic details about your business.
  • Get an approval decision within four business days.
  • Get funded a few days later.

UPDATE: Kabbage is currently not accepting applications for loans.

Kabbage Customer Reviews

Kabbage has many poor reviews from customers. Here are some verified Kabbage reviews on Trustpilot’s website made by people who sought loans through them to help their businesses:

“No one picks up and no one answers back, How could I manage my loan???”

“It's time for a class action suit. Similar to many of the reviews already present, I was approved for PPP, asked to send my personal tax return, marriage license, a utility bill, a voided check, my drivers license, and more. My husband who also applied was given the same run-around.

After providing all of these documents (which I now regret) and it taking them over the 20-day SBA period and the claim of an attempt to deposit the funds into my account and having them rejected, I was told today that my application was canceled due to my not providing my EIN number. (Of course, I did). This is an absolute joke.

I am wondering how those of us on this page who have had similar experiences can gather for a class action case. Google search the article on Kabbage on Real Time (can't include links here). It seems they are exploiting our vulnerability in needing these funds and using it as an opportunity to gather unnecessary personal information, which they plan to legally share. What is clearly illegal is the claiming that these documents are necessary in order for them to process the loan. It is a scam. How can we contact one another to create a class action?”

“I had a great experience with Kabbage. It sounds like there were a lot of issues with the PPP loans, but I did not apply for that. I applied for a loan in 2019. It was a super easy process and quickly funded for our business. The repayment terms were easy and Kabbage worked with us when we needed some extra time during slow periods. Overall, I was really pleased with their customer service and loan terms. I would work with them again. Sad to hear they had such a hard time with the PPP Loans. I think a lot of funding companies did. I had a hard time applying through Square and the local bank. Hope they can bounce back.”

Learn more by checking out our comprehensive guides on small business loans.

Kabbage Review Ratings

Value - 2.5/5

Overall, Kabbage’s value doesn’t work well for most businesses needing greater than $250,000 in capital to improve their business and make it more profitable. Kabbage charges between 24% and 99% interest depending on the term of the loan, how much you require, and the various needs of your business.

Customer Service - 2/5

Kabbage’s customer service is “nonexistent,” according to many of their previous customers. We couldn’t reach anyone when we called them.

Ease of Use - 3.5/5

Applying for a term loan seems easy. Everything is explained perfectly on Kabbage’s website. Loan decision turnaround time is fast, often a couple of days. Problems arise later when you need to reach customer service to manage your loan.

Included Features - 4.5/5

We like that Kabbage specializes in helping business owners with low credit scores get funding for their business. Kabbage also offers other services like merchant accounts and business checking accounts.

Final Thoughts on Kabbage

Kabbage may be the right lender for your business if you need short term financing and have poor credit. Rates are between 24% and 99% depending on your credit score, how much you are requesting, and how long you anticipate needing to repay the loan.

If you have better credit than a 560 FICO score, you would be wise to shop around for a loan elsewhere since it seems that Kabbage is expensive and currently not accepting applications.

If you are an established business with good credit, a traditional bank loan will offer you better interest rates and terms.

Visit our comprehensive guide on small business loans.


Is Kabbage legitimate?An orange arrow pointing down

Kabbage is a legitimate lender, though currently is not accepting applications.

Are Kabbage loans good?An orange arrow pointing down

Kabbage loans can be a good choice for business owners with poor personal credit scores. You only need a 560 FICO to qualify for a Kabbage loan. Interest rates are higher than other lenders.

What credit score do you need for Kabbage?An orange arrow pointing down

Kabbage requires only a 560 FICO credit score.

Does Kabbage do a hard pull?An orange arrow pointing down

Yes. Kabbage will perform a hard credit check through Experian.

Why did Kabbage stop lending?An orange arrow pointing down

Kabbage ran into financial difficulties due to COVID-19 and was forced to halt its traditional lending operation, mainly due to so many small businesses across the country indefinitely closing because of the pandemic.

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