Among the reputed companies that conveniently lend money is Kabbage, a loan company founded in 2009. It offers only the line of credit loan that you can apply via desktop, mobile app, or a spending card that the company provides to all its customers. This works best when the repayment time occurs because the exact amount can be paid right from your credit line.
Rates and Terms
• Borrowing Amount: Up to $250,000
• Funding Term: 6 or 12 months
• Borrowing Fee: 1.5% to 10% of the amount per month
• APR: 24% – 99%
Requirements for Eligibility
To qualify with Kabbage, you must stand with their eligibility criteria. These are:
Your business should be doing well for at least one year.
You should have a minimum of $50,000 in annual revenue or $4,200 per month over the last three months.
The Process for Application
Follow the steps below to apply for the line of credit loan offered by Kabbage:
• Fill information online. You have to inform about yourself and your business while making sure that all of your important information and data channels like business bank account and like Amazon and PayPal are shared securely with restricted access to the reader.
• The lender evaluates and verifies your financial history before taking any decision so that the risk is well determined.
• Cabbage uses an algorithm for approving or rejecting your application.
• In case of any problem in the verification of information, the application process might get delayed. Additionally, you have to give additional information to grant you a larger credit line.
• After your application being approved, you can begin requesting funds and get Kabbage Card free of charge to pay for goods and services from your credit line.
Pros and Cons of Kabbage
Getting loans at Kabbage has several advantages and disadvantages.
• It is suitable for small businesses.
• It has relaxed borrower qualifications.
• No additional fees are charged.
• It has a fast application process.
• Monthly repayments can be made (as opposed to daily or weekly), and the line of credit-style loan offers an easy-to-access financial safety net.
• No paperwork required for fast access to cash and business checking account possible online bookkeeping software or payment platforms.
• If you have a Kabbage Card, no additional fee is charged.
• Cheaper loans are available to business owners who don’t get them due to bad credit.
• It is not suitable for startups and gives loans at potentially high APRs.
• The fee structure is complex in which you pay back a percentage of the principal amount borrowed and a fee per month.
• You get less incentive for early repayment.
• Credit lines to applicants are not extended even if you meet the company’s minimum stated requirements of the application process.
• to save a significant amount of money due to early prepayment.
• If you are not getting a good turnover in business, Kabbage can apply sudden loan limit cut, a condition that reduces your borrowing limit or cut off your credit line entirely. In such a case, you will have to repay the remaining outstanding debt.