You’ll create a Kabbage account by offering your email and adding a password, and they’ll then ask for basic business and personal information including your name, business name, business type, home and business addresses, phone number, industry, EIN, and Social Security number, and at least three months of accounting records.
Once you’ve given this information, you’ll be prompted to connect the financial platforms you use to your Kabbage Funding business loan application. You’ll need to connect your business checking account, plus any other online services your business uses and they will ask that you provide the login information for each account you connect. Examples of online services you can connect to are:
- Stripe, or
It’s important to sync up as many business services as possible because the more business revenue you can demonstrate, the more likely you are to qualify for a credit line. Kabbage will review and underwrite your loan based on the information they receive from your synced accounts. Therefore, the more accounts you can link to your application that show your revenue and business performance, the more data they have to underwrite your line of credit.
Once you’ve connected your accounts, Kabbage’s online algorithm performs the underwriting, so you can get an approval decision in minutes. If you’re approved, you’ll instantly see the size of your credit line, the repayment terms offered, and the interest rate. Some customers will be given the option to choose between a six-, 12-, or 18-month repayment term.
After you sign your loan agreement, your funds will be sent to the account that you indicate, either your business checking account or a PayPal account. Funds deposited into a PayPal account will take only a few minutes to process, whereas it may take up to three days to receive the funds in your business checking account. Once you’ve received your funds, you can immediately start drawing money from your credit line and you’ll only pay for funds that you use.
You’ll want to keep in mind that the application process can take longer in cases where Kabbage Funding has trouble verifying your business information. If they do not approve your application for funding the first time around, their algorithm will keep tabs on your business using the accounts you linked. If and when you meet their business line of credit requirements, they will alert you. Along these lines, your account will also be regularly reevaluated to see if you’re eligible for changes in your credit line or fees.