Kabbage

Since its founding in 2009, Kabbage has provided quick funding for short-term loans with short repayment periods of 6 to 12 months.

These business loans are ideal for business owners who have a low personal credit score and can’t get approved for a lower-interest loan. They focus more on your accounting, banking, and e-commerce information.

Before lending to you, Kabbage takes several factors into account, such as your monthly revenue and the number of years you’ve been in business. They require that you must have been in business for a minimum of 12 months, have an open checking account, and if you have been using any accounting software, it must have been open for 3 months. You must also earn at least $50,000 a year or earned $4,200 in the previous 3 months. These affect your final terms like your fees, interest rates, and credit limit.

Although they do not have a minimum credit score set, Kabbage states that the average borrower has a credit score of 500. They also pull your credit report during the application.

Kabbage does not take your business credit score into account or work with business that have over three non-sufficient fund transactions in 90 days, are nonprofit organizations, or have high balances with other lenders. However, they may work with business owners who have declared personal bankruptcy one time, but only after a year has passed since the bankruptcy has been discharged.

You can apply at www.kabbage.com. During this process, you won’t have to speak with a representative since the application is done completely online through an algorithm. You must submit an email and password, and then provide business information that includes your business name, address, and phone number. They will ask questions regarding your industry type, company structure, and the date your business was established. If you own a business that is not a sole proprietorship, you will need to provide your Tax ID number.

Kabbage’s application process requires you to connect the company to an active business checking account, a payment service like PayPal, or bookkeeping software. You can also connect them to one of your other business accounts like Amazon, eBay, Square, Quickbooks, Etsy, Yahoo, Square, Authorize.net, Sage, Stripe, or Xero. You must prove that you are connected to the business and that you have a minimum bank balance of $2,500. Kabbage does not require a personal guarantee to receive a credit line.

In some cases, you may have to provide extra documentation or Kabbage may review your application manually, which may take a few extra business days.

Your loan details are provided on a SMART box on the site, allowing you to check your APR and monthly payment before you decide to take out the loan.

This application takes anywhere from a few minutes to 5 business days to process. If you are approved, your funds arrive in a few business days. If you are denied for a loan, you must wait 6 months to a year before reapplying. Kabbage will ask Experian to perform a hard credit pull during the final step of your application, which will affect your credit score slightly.

Depending on the documentation you must provide, you may receive your funds on the same day or up to 7 business days. Kabbage will file a blanket UCC lien on your business once you receive funding.

Once you receive the funding, you can use your credit line up to once a day and pay interest on whatever you use. Once you pay back what you have used in full, your credit line is made available to you again.

You receive your payment date before you start using your credit line, and you are given either a 6 or 12 month loan term during which Kabbage collects payment automatically via your business bank account. Kabbage does not charge a prepayment fee. They also do not report to the major credit bureaus or the business credit bureaus.

You can view your loan terms and payment on an online dashboard. Customer service and technical support are available by email or phone at 888-986-8263. They also have a social media presence on Facebook and Twitter.