Kabbage.com can provide the working capital to help your e-commerce business grow. They offer fast and flexible funding without the typical process used to obtain a tradition bank loan. This is an unsecured loan and there is no collateral required. On Kabbage.com you can also take more than one advance at a time.
To obtain funding you must first meet the initial requirements; you must have been in business for at least one year and you must have at least $1000.00 in monthly sales. You can sign up on Kabbage.com for free and qualify for funding within seven minutes. The process is quick because they use Google Analytics to evaluate your information rather than the lengthy approval process using underwriters.
To start the process, you will be asked to input information regarding your marketplace and you must also provide your PayPal account information. This is a method they use to validate your business transactions. The application also asks for personal information, business information, and information to retrieve your credit report.
Data from EBay, Amazon, Shopify, Yahoo, PayPal, Etsy, Shipping analytics, are all used to determine if you will be granted with funds from Kabbage as well as how much money you will be given. The Google analytics factor in a variety of marketplaces in order to come up with your approved dollar amount and rate of cost to borrow the money. Some of these factors include your seller rating, time in business transaction volume, customer feedback and reviews. When combining this data their business model functions to anticipate the future sales revenue of your company.
Cash advances range from $500-$50,000 which must be repaid within six months. These loans are also subject to a monthly cost of 2-7%. Since all of their transactions are processed online through PayPal, fees for these transactions are paid by Kabbage.
Online complaints displayed problems with Kabbage’s payback system. With access to their borrowers’ PayPal accounts, they have complete control over your payments. Customers have noted that funds were removed from their account without notice. Kabbage was also faulted for taking all of the funds in their customers’ accounts leaving them empty. With access to your PayPal account, also comes access to your bank account or credit card. The safety of using Kabbage is questionable due to their repayment processing methods.
On the other hand, there were also positive reviews from Kabbage.com customers. These customers did not experience any account issues and, overall, were satisfied with their experiences.
Before starting a business, have a solid business plan and compute financial data prior to opening. Having capital is important to being successful. If you use Kabbage to obtain working capital, it may be best to set up a bank account that is separate from your personal bank account. This way you are in control of the funds that Kabbage can take from your account and you can avoid the payment issues other customers encountered.
5 ‘Kabbage.com’ Reviews
Worse than a payday loan.
Kabbage will not disclose its APR. There is a reason for that. No one in its right mind would get an advance that is approaching a 50% APR. It is outright criminal and you should avoid it like the plague,
Kabbage is not a scam and can be resourceful if used wisely (High Interest). The problem I have recently started having with them is with their autopay feature. Kabbage has been pulling all my money out of my paypal account even though my monthly payment has been paid. I have had sufficient funds to cover the payment but it keeps pulling more until cleaned out. I have been a customer with them for 2 years without any problems and this just started happening. It happened last month and it took them 3 days to fix the issue and get my money back. Now it's happening again. Stay away from this and get a real loan elsewhere with lower interest.
Misleading and deceptive
I signed up for their "seven-minute" loan. Yeah, right. First they made me grant them permission to my PayPal account. Then they wanted a copy of my driver's license and a utility bill, which they said they'd "process" within three to five days. Then they wanted me to verify two microdeposits to my checking account.
Screw that. I told them to cancel my account and withdraw my application. I also revoked their access to my PayPal account from the PayPal side. It seems to have gone away.
DO NOT USE THEM!!
Its not so much that there a terrible company in general, however I did notice that they removed there phone number and now in order to receive any sort of answers you have to send them an email, which is not a good sign to me. But I digress, I got approved for a decent amount, and I will say the payment structure is almost criminal. It looks decent, but don't be fooled, it is anything but!!
I would not even suggest this Company to my worst enemy!
Don't be fooled
I tried Kabbage, they do not allow you to remove your pay pal account and that is linked to your bank account.
It is a trap designed to take your money and you have to be careful not to be fooled by words and reviews.
Next time i will be more careful before signing up to service like Kabbage and you should too. Take a look at the policy and at closing accounts, and you will find that once they nabbed you, you are stuck unless you close down your pay pal account.