Do you want to know how to apply for a Kabbage loan? Well, this is easy but only if you know how to. Cabbage really created a business model that kind of appeals to businesses that are looking for a unique and yet very sensible funding solution. That very business model in question also appealed to investors that American Express in 2020 acquired the company.
How to Apply For Kabbage Loan
What is Kabbage? Kabbage as you should know is an online business lender that is owned by American Express. The services of the company include a business line of credit as well as some financial management tools. The company was launched back in 2008 and ever since then, it has become one of the fastest-growing online lenders in the industry and market. Amex during the 2020 pandemic purchased the company.
Kabbage at the moment no longer maintains its website, but potential borrowers however can apply via the Amex website. You can effectively borrow up to $250,000 with 6, 12, or 18-month terms as long as you qualify. And when you consider the simplicity of the application as well as the flexibility of the requirements involved, Kabbage may have one of the most advantageous products currently on the market.
What Do You Need To Apply For Kabbage
Applying for Kabbage funding is easy as long as you have and meet up to the requirements. With that being said, you will need the following documents and information to effectively apply for Kabbage funding;
- Business tax ID
- business name, type, and industry
- Social security number
- Business checking amount
Applicants seeking funding must have a valid business checking account. Kabbage as you should know connects to your business bank account to review cash flow when determining eligibility.
Other Important Factors to Note for Kabbage
Other important criteria businesses must meet include;
- One year minimum in business
- A minimum credit score of 640 which is considered fair credit
- Monthly revenue of $3,000 or more
Eligible businesses in this regard must have an average bank balance of $2,500 and must not have large outstanding balances with other business lenders. You will however have to contact Kabbage in order to determine what constitutes a “large” balance.
Businesses that have one previous bankruptcy can get approved if the bankruptcy was discharged at least 12 months ago. The owner of the business must also sign a personal guarantee. And if you default, Kabbage could potentially seize your personal assets in order to compensate for the loss. Kabbage may also get to file a general lien on your business, all depending on the financial health of your business.
Steps To Apply With Kabbage
The funding process speed of Kabbage depends on the accounts that you connect with Kabbage and also which accounts that you make use of in accessing the credit line. Some clients can easily get access to finds just a couple of hours after they apply. Other businesses on the other hand may have to wait for up to three business days.
With that being said, here are the steps to get started;
First Step – Fill Out the Application
You can easily apply for Kabbage funding via United Capital Source. And just before applying, a UCS executive will work with you directly to ensure that Kabbage is the right product for your needs.
If so, you will have to fill out the application with basic information about you as well as your business. The information you will have to give includes your industry, EIN, social security number, etc.
Second Step – Connect Accounts
After completing the application process, you will then be asked to connect Kabbage with your online accounts. And in addition to your business checking account as well as bookkeeping software, and this is inclusive of any online services you utilize that can demonstrate the performance of your business.
Third Step – Review Your Offer
The algorithm of Kabbage will approve or decline your application in just a couple of minutes. And in the case of the former, you will see the size of your proposed credit line, terms, as well as the interest rate. But depending on your financial health, you may however be given the option to select between six, twelve, or eighteen-month terms.
Fourth Step – Get Funded
If you get to tell Kabbage to send funds into a PayPal account (yes, only PayPal), they will appear in the account in a couple of minutes. And if you tell Kabbage to send funds to a regular business checking account, it could end up taking up to three days for funds to appear.
Funding speed as you should know also depends on the size of your credit line. And specifically, credit lines that are above $100,000 may take longer periods than one business day to deposit, regardless of which of the account you utilize.
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