Kabbage is a popular business lender that has lower requirements than many alternative lenders. They offer a simple business line of credit. The Kabbage loan requirements are indeed lax, but they aren’t the simplest requirements you will find. So, let’s look over the credit score and documentation requirements that they require. Let’s also look at what you can expect from Kabbage based on your situation.
Keep in mind that the offers you will receive from any business lender will be made at their discretion. While they won’t often do it, they can refuse an application according to their standards.
Kabbage Loan Requirement: Credit Score
Kabbage doesn’t state a minimum credit score requirement. However, the company does consider your credit score. While they don’t state a minimum threshold, Kabbage is known to start rejecting applicants with scores that dip below 560.
What your credit score will do is determine how much Kabbage is willing to lend you and the rates you will get with their loans. Of all the Kabbage loan requirements, their credit score requirements are the most obscure.
Business Experience & Revenues
Kabbage has a clearly stated policy when it comes to your time in business and your revenues. First, you need to have been in business for at least one year to qualify for a Kabbage business loan.
Their business revenue requirements are a bit more open. You need a minimum business revenue of $50,000 per year or a minimum monthly revenue of $4,200 for at least the last three months.
If you meet the minimum income and time in business requirements, you should be accepted for a loan. Just keep in mind that you may be rejected if your credit score is too low. Also, if you meet the Kabbage loan requirements by only a small margin, you can expect a much higher APR on your loan.
The Kabbage Loan Requirement: Process
There are several steps you must take to be able to apply for a loan.
First, you will need to set up a Kabbage account online. This account will be used as the medium connecting you and Kabbage. It is also the place from which Kabbage will collect all of the information they need to assess you and come up with an offer.
You can log into your Kabbage account at any time to see the status of your application. If you have an active line of credit or term loan, you can also find all the information you need on your Kabbage account’s interface.
Linking Your Business Bank Account
After you create an online Kabbage account, they will need you to securely link your business bank account. Kabbage requires secure and ongoing access to your business bank account to assess your business and come up with an offer. Their assessment will be quite fast compared to traditional lenders. They will just need a quick look at your revenue consistency, credit, cash flow, and a few other indicators they don’t disclose.
Kabbage Loan Requirement: Offers
After their quick assessment, Kabbage will send you an offer laying out the rates you’ll get and your credit limits. Kabbage’s line of credit can have a maximum limit of $250,000.
If You Accept…
After accepting a Kabbage line of credit, you would be able to pull funds whenever you need to. You pull funds using your Kabbage account from either your computer or your phone. Kabbage charges higher rates than many lenders, but they are well-known for their transparency. You always know what you will be charged before accepting an offer, and a Kabbage business loan doesn’t come with any hidden fees.