During the 2018 recession, loan growth at commercial banks tanked and up to date has not fully recovered.
It’s during this period that Kabbage leaped in to fill the financial void.
Kabbage is an online lending platform that secures funding for small-business owners to help in boosting working capital, inventory, funds for payroll, and more.
Unlike the traditional methods of funding, qualifying for a loan at Kabbage is fast, has a higher approval rate and funding in 24 hours or less.
A major reason why Kabbage is popular is that it uses a non-traditional approach to reviewing your finances.
Rather than using the popular credit score provided by agencies such as FICO, Kabbage relies on alternate sources of data such as bank accounts. That’s a huge plus, especially for businesses that fall in the “bad credit” basket.
On the flip side, however, the convenience, and fast approval of the Kabbage loan often comes with higher borrowing costs than banks.
Kabbage Loan Application at a Glance
Like we had mentioned above, the Kabbage loan application takes a few minutes. In most cases, the average loan application process takes less than 10 minutes.
The application process is primarily on an online platform, and you’ll not need to provide any calls.
Further, no documents are required, save for data links to your business bank account, a payment platform, or bookkeeping software.
Finally, you need to agree to a consumer credit check as this will form the basis of your credit reports.
Like any lender, Kabbage has some basic qualifications that you need to pass to get loan approval.
However, they’re not as strict as those of the traditional lenders.
The loan qualifications at Kabbage are;
- The business should be operational for at least one year
- $50,000+ annual revenue
- A business checking or online payment platform is required
A Step By Step Procedure of Applying for a Loan at Kabbage
Visit Kabbage.com and sign up by clicking on the “Apply Now” tab.
You’ll be directed to a page where you need to fill out your business details.
Some of the details include;
- Business name
- Postal address
- Federal tax ID
- Date of establishment
After this stage, you’ll also be prompted to create a Kabbage account.
Instant Business Review
The second step in the Kabbage loan application is probably what sets this lender from other lenders in the market.
Unlike traditional lenders who will use your credit score to determine your creditworthiness, Kabbage will encourage you to link a bank account or even an online payment platform.
According to Kabbage, their mission is to streamline the lending process by allowing customers to link their data sources.
Beyond your businesses’ financials, Kabbage will also look at other alternative cues, such as your company’s past success. For instance, Kabbage might also request for additional financial information to verify your average monthly or yearly income and even confirm the ownership role with the business.
Once you’ve decided which financial platform to use, you can sign directly from the Kabbage platform. Gladly, Kabbage maintains discretion and will prevent their staff from viewing or even storing your log-in information.
Filling Account Information
Once you’re through with the tying your financials to your account, you’re prompted to fill your details.
- Year of birth
- Home address
Waiting for Decision
Your fate is decided in a couple of minutes.
The good news is, more than 90% of the applicants are given a decision digitally. Moreover, the approval rate is considerably higher.
However, if your business does not meet the eligibility criteria or Kabbage is having trouble identifying your business, you might have to call customer care to validate your account.
Acquiring the Cash
The last step is the cash withdrawal.
It entails choosing how much credit you’d like to withdraw and your loan term length.
Kabbage has different loan packages, with the most common one being six or 12-month term loans.
How Fast Do Business Get Cash after Approval?
The funding typically reflects in minutes or between one to three days.
The three different options of receiving your cash from Kabbage include:
- Transfer to PayPal account
- Through debit card
- Direct ACH deposit
Apply now at Kabbage.