Kabbage offers fast and easy business lines of credit ranging from $2,000 to $100,000, with terms of either 6 or 12 months. They check your business’s online services—like QuickBooks, Square, or PayPal—and can qualify you in minutes.
A business line of credit is flexible “revolving” capital that works almost like a credit credit, except you get access to cash. Draw on your business line of credit to get more working capital, buy inventory, handle seasonal cash flow gaps, pay off other debts, or address almost any other business emergency or opportunity.
In order to be eligible for a Kabbage loan, your business must have been operating for at least 1 year and make over $50,000 a year in revenue. Like all lines of credit, with a Kabbage loan you’ll only pay for the funds you withdraw and use.
But unlike most lenders, Kabbage doesn’t charge interest: instead, they charge a monthly fee typically between 5 - 12% in the beginning months of your loan and 1% afterwards. You pay an equal portion of the total amount borrowed each month, while your monthly loan fees are stacked mostly at the beginning of your term. As a short-term loan, Kabbage tends to be on the expensive side for small business owners.
Kabbage business loans come with a prepayment incentive, so you’ll save money if you clear your debt early. You can withdraw funds from your Kabbage line of credit up to once per day.