It can be very difficult for a new business to get loans for costs. Inventory, start up costs, this can all be expensive. Kabbage has a different way to approve loans than the classic credit score only way to get loans.
It is easy and fast to apply for Kabbage funding. You will not have to provide a lot of information. Just your basic information and link your business accounts for approval and you are done.
Kabbage Funding Review
When first visit Kabbage.com you will be asked to create an account. This is simple, just enter some basic information and you are all set. Once you have your account set up you will be able to link your Paypal, your Amazon, Ebay, etc accounts, and your business checking account.
By linking these to your account, Kabbage can see that your business is a real sustainable business. This is how they determine if you are eligible for a loan. Kabbage does not approve you for loans on your credit score alone. That is what makes them so unique. If you do not have the credit you can still get a loan for your business.
Unfortunately this is not an overnight process. Kabbage will deposit two small deposits into your checking account and you will have to verify them before you can take your first loan. However this is done to make sure that the account information in correct and to verify that you will be getting your money. The last thing that you want is for your money going into somebody else’s account!
- User Friendly
- Perfect for people with lower credit scores
- Once approved getting your loans is as easy as signing into your account
- You can take one loan per day from your approved credit line
- You do not have to take the full amount approved for all at once
- Fees are 1% – 13.5% of your selected loan amount the first 2 months and 1% for each of the remaining 4 months. No early payment fees.
- Every month, for six months, you pay back 1/6th of the total loan amount plus the monthly fee. You can pay early and save.
- You can only take one loan per day – make sure you take enough for the day
- The loan repayment is higher than a standard loan
- Payments must be paid back within 6 months
- The first 3 months payments are much higher than the last 3 months payments
My first loan amount was for $500. My repayment was going to be $640. I paid it off within the first month and had to repay $560. While to rates may seem high, I can could not get a standard loan as my business is new.
I had two choices – Grow slowly and use only the funds I could afford to use, or get a loan and and dive into my business. I started growing slowly but soon found out that there was definitely money to be made and I wanted to grow faster.
Since my first loan I have taken two more loans. As long as I pay them off within the first couple of months I only pay the loan amount plus the initial loan fee of $60. This is well worth it for me. If I do not have available inventory then I do not make money. I have almost hit the level that I want to be at after 3 loans. Now my business should hold its own even with paying back the loans.
And I always have Kabbage to fall back on if I decide I want to expand again!
I hope that this Kabbage loans review helped you out. If you have any questions you can refer to https://www.kabbage.com/how-it-works.