Kabbage Business Checking Review 2024

Kabbage Business Checking Review 2024

Kabbage, a part of American Express, is an online lending haven for small businesses. Offerings like Kabbage Funding, Checking, and Payments make it a one-stop shop for financial support. Today, let’s explore their business bank account and lines of credit tailored for smaller enterprises.

Business lines of credit from Kabbage start at $2,000 and soar to $250,000. They’re ideal for borrowers with a FICO score of 640 or higher. In this comprehensive review, we’ll also take a quick peek at their online business checking account and payment processing services.

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Kabbage logo

Kabbage Funding makes applying easy with minimal paperwork and clear eligibility requirements. The annual percentage rate ranges from 9% to 36%, making these loans an excellent choice for small business owners with credit scores of 640 or more.

You get fast access to funds; approvals might take just minutes, and the money lands in your account within three days. However, it does have its downsides, like a tricky monthly fee setup that varies with 6, 12, or 18-month repayment periods. Plus, loans here need a personal guarantee and might not suit brand-new businesses.


  • Streamlined application procedure
  • Quick approval, often within minutes
  • Straightforward eligibility criteria


  • Intricate monthly fee setup
  • Lacks extended repayment plans
  • Demands a personal guarantee

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Kabbage Funding, Checking & Payments at a Glance

Kabbage began in 2008 and joined the American Express family in 2020. This fintech company is renowned for its small business loans and provides other financial solutions. American Express introduced its first business checking account through Kabbage, featuring a 1.1% APY.

Kabbage Payments enables easier, more cost-effective transactions with fees as low as 2.25%. This suite of services positions it as a comprehensive solution for your small business financial needs.

With Kabbage Funding, you can secure business lines of credit from $2,000 to $250,000 with terms of 6, 12, or 18 months. Rather than traditional interest, Kabbage applies a monthly fee of 0.25-3.5% rather than traditional interest, depending on your chosen repayment term, leading to an APR of 9-36%.

While Kabbage doesn’t promise same-day funding, its service is nearly as swift. Loan approvals often take just minutes, and funds are typically available within three business days. This efficiency places Kabbage loans among the top for easy approval in the small business sector.

Who Kabbage Funding is Best For

Securing a small business loan from this lender is an excellent choice if your credit score is better and you need quick access to working capital. They focus less on traditional financial histories, making it simpler to get approval even with a weaker credit report.

However, Kabbage loans are only ideal for new businesses or those with a business checking account. You must have a business bank account to qualify for a loan from this lender. If you’re in search of longer repayment terms, you should explore other options, as the maximum repayment period here is 18 months.

Kabbage Loan Details That You Need to Know

Here’s an overview of Kabbage’s business lines of credit, including the borrowing amounts, loan durations, and the costs involved for the lender.

Loan Details

  • Loan amount $2000 – $250,000
  • Repayment terms – 6,12 and 18 months

Monthly Fee 6-month term: 

  • 0.25-3.5%
  • 12-month term: 0.25-2.75%
  • 18-month term: 0.25-2.5%

Estimated APR 

  • 9.00-36.00%

Repayment Schedule 

  • Monthly

Other charges 

  • No application fees, origination fees, annual fees, or account maintenance fees
  • No prepayment penalty
  • Late payment or unsuccessful payment fees may apply


  • Available in all 50 states

Funding Speed

  • Approval may take only a few minutes. Funds are deposited within three business days

Kabbage calculates the cost of its lending services differently from traditional interest rates, making the fee structure less straightforward than other lenders. We’ve outlined the percentage of your loan amount that you might pay as a monthly fee and the total repayment amount. This percentage varies based on the chosen repayment term, your credit score, and other factors.

If you’re looking for a fee-free business account, check out our in-depth reviews of Bank of America, NBKC Bank, and Novo. These reviews provide insights into the advantages, disadvantages, and alternatives.

>> Check Out the Best Pricing for the Kabbage >>

Kabbage Funding Features

Kabbage’s business line of credit is just one facet of its offerings. The online lending platform also provides business checking account services, regarded as among the top for small businesses. Its payment processing services make Kabbage a comprehensive financial toolkit. Let’s explore some of its standout features.

Fast Access and Approval to Working Capital For Expedited Loan

If you need quick loan approval and fast access to funds, and you’re ready to pay a premium for speedy service, Kabbage Funding is an excellent choice. While it doesn’t provide same-day business loans, its process is nearly as quick. 

Approvals typically take just a few minutes, and you won’t often wait longer. After your loan application gets the green light, the lender ensures that funds will be in your hands within three business days.

Kabbage Loan Eligibility Requirements

Kabbage Funding features clear-cut eligibility and approval criteria for loans. To qualify for a loan, you must meet three fundamental requirements:

  • A personal credit score of 640 or higher
  • At least 12 months in business
  • Annual revenue disclosure (minimum of $50,000)
  • A valid business checking account

Kabbage doesn’t specify the exact annual revenue required for eligibility, but $50,000 is a reasonable estimate. It does indicate that your annual business revenue affects the credit limit for which you may qualify.

While meeting these requirements doesn’t ensure loan approval, adhering to or surpassing them does enhance your chances of securing funding from Kabbage.

Simple Application Process of Kabbage

Kabbage provides a swift and straightforward loan application process that you can complete online in under 10 minutes, either through their website or mobile app.

To start, simply create an account on Kabbage, link your business checking account, and fill in some basic details. Before submitting your application, Kabbage will request your permission to review your credit history. If all information is verified swiftly, you could receive a decision within minutes.

Should there be any issues or if further review is needed, the process may take four to seven business days. Upon approval, Kabbage will issue a loan agreement detailing the credit line amount, repayment terms, and monthly fees. After you sign the agreement, expect the funds in your business account within three business days.

Sales & Advertising Transparency of Kabbage

The lender prominently displays all rates and fees on its homepage, providing a transparent overview of the costs associated with its lending services. The application process and terms of service are readily accessible on the Kabbage website, demonstrating a strong commitment to transparency in sales and advertising.

While Kabbage’s resource center effectively addresses many questions about its services, navigating its complex monthly fee structure can take time and effort. This is the primary drawback we’ve noted.

Kabbage Customer Reviews

Kabbage once boasted impressive customer reviews with an A+ rating on the Better Business Bureau (BBB), but this is no longer the case. It holds an average customer rating of around 3.5/5 on prominent review platforms like Trustpilot and BBB.

Positive reviews often highlight Kabbage’s simple application process and rapid funding. Conversely, negative feedback tends to focus on the low borrowing limits, brief repayment terms, and sluggish customer support.

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The Alternatives Sites to Kabbage 

While Kabbage streamlines the application process and provides quick funding, its short repayment terms and low borrowing limits that might not be the best fit for your business. If Kabbage doesn’t seem like the right choice for your business line of credit, consider exploring other alternatives.


FundBox offers a broader array of financing options compared to Kabbage Funding, including business lines of credit and term business loans. This lender doesn’t solely base application approval on your personal or business credit scores.

Fundbox has partnered with Stripe to give businesses more access to working capital through Stripe Apps. Stripe customers can now obtain a Fundbox Line of Credit right from their Stripe dashboard.

Fundbox ensures quick, straightforward access to small businesses’ working capital and spend management solutions. Installing the Fundbox app for Stripe lets you complete a seamless, paperless application from your Stripe Dashboard and potentially receive a credit decision in just 3 minutes. Funds could be available the next business day, with weekly payments, flexible terms, and no penalties for early repayment.

With no minimum credit requirement, Fundbox is an excellent option for borrowers with weaker credit but solid performance in other areas. In contrast to Kabbage’s 9.00-36.00% APR, Fundbox offers rates starting at 8.33% for a 24-week repayment plan and 18.00% for a 52-week term.


  • Quick approval
  • Possibility of securing a second loan without reapplying
  • Auto-payments available


  • Term loans in beta testing
  • Automatic weekly repayments debited from a bank account
  • Short repayment terms

>> Experience Better Banking With FundBox >>


Bluevine offers a line of credit service similar to Kabbage Funding, with borrowing limits up to $250,000 and rapid loan application approvals within minutes.

With Bluevine, you benefit from a comprehensive business operating account without monthly fees, and it qualifies to earn interest like a business savings account.

It provides an attractive 1.5% interest on balances up to $100,000, one of the highest in the industry. It may offer APY up to 4.25%. However, fees can accumulate for outgoing wire transfers and cash deposits.

Bluevine offers two repayment terms, six and 12 months, with interest rates on its lines of credit ranging from 15% to 78% APR. Unlike Kabbage, Bluevine accepts businesses that are operational for just six months. Read our full review of Bluevine for more details on its services and costs.


  • Multiple financing options
  • Quick access to short-term funds
  • Straightforward application process


  • Brief repayment periods
  • Line of credit incurs a draw fee
  • Personal guarantee needed

>> Experience Better Banking With Bluevine >>


OnDeck is ideal for those needing quick funding but not suitable if you have poor credit or seek a loan for bad credit. It offers same-day funding, though interest rates and fees are among the highest. The business loan agreement also includes benefits like opportunities to eliminate interest and save money.

Like Kabbage, OnDeck has a simple application process. Its business lines of credit reach up to $100,000, while term loans can be as much as $250,000. If you opt for OnDeck’s lines of credit, you’ll face weekly repayments, unlike Kabbage’s monthly schedule.

Depending on your business location and other factors, your loan may be issued by an OnDeck company member or Celtic Bank, a Utah-Chartered Industrial Bank, Member FDIC. The loan agreement will specify the lender before you sign. Loans are subject to lender approval.


  • Interest is waived if you prepay
  • Loyalty program, new loans cancel existing interest
  • Consistent payment amounts


  • Requires good credit score, annual revenue, and other loan criteria
  • Weekly repayments necessary

>> Experience Better Banking With OnDeck >>

Frequently asked questions

Typically, Kabbage responds with a decision within minutes. However, the process might extend from four to seven business days if it needs more information or additional review of your application.

Yes, Kabbage performs a hard credit check on both your personal and business credit scores when you apply for a loan. You will be asked for permission before your data is accessed.

Established in 2008, Kabbage was acquired by American Express in 2020. With American Express as its owner, Kabbage is recognized as a reliable and secure provider of short-term business loans.

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Bottom Line on Kabbage Review

Kabbage Funding can be pricier, so we suggest considering it primarily if you need quick financing. Before signing the loan agreement, thoroughly comprehend all fees and the total payment.

Kabbage provides repayment terms of six, 12, and 18 months only. You should explore other options if you’re seeking longer refinancing periods. Nevertheless, Kabbage remains an excellent choice if it aligns with your funding requirements. Its business checking and payment services enhance its versatility as a financial service provider.

>> Apply for a Kabbage Loan Today! >>


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Judith Harvey is a seasoned finance editor with over two decades of experience in the financial journalism industry. Her analytical skills and keen insight into market trends quickly made her a sought-after expert in financial reporting.