Kabbage is a website that I discovered one night while typing in loan search terms in the Google search engine. As an online seller, I remember thinking that it would be great if there existed a lender that would give online sellers a loan based on their online selling record and not their credit history. It was just one of those nights when I was thinking how I would really be able to grow my online selling business if I had the money to buy more inventory. Low and behold, I came across a website called Kabbage.
When I clicked on the site, I learned that a requirement to get a loan from them was to have an average revenue of $1000 during the past six months. I easily meet this criteria. I also learned that credit was not the main priority that Kabbage looked at when deciding if you get a loan or not. The site also said that Kabbage will determine how much of a loan you qualify for. I figured that I would qualify for the maximum $50,000 loan, but I would later learn that I did not qualified for that much. One thing that really caught my eye was that you would receive your funds within seven minutes. The Kabbage website stated that the funds will be transferred into my PayPal account. Wow! Could it be possible that someone would loan me $50,000 within seven minutes and that I would have all that cash in my PayPal account? I was VERY skeptical of that.
I clicked the sign up button and registered with Kabbage and created an account. To qualify for a loan you are able to utilize your bank accounts and other data channels that Kabbage uses. This includes income from Amazon, eBay / PayPal, Yahoo, Shopify, Big Commerce and Etsy. Income from all of these sources will be linked together to help determine how much money you qualify for. Optionally, you can qualify for more cash by registering your QuickBooks, Google Analytics and Xero accounts. Adding your UPS account to your account will also raise your fund limit. That is not it though, if you have a Twitter account or Facebook account, you can sync those to your Kabbage account and get even more cash. Basically, the more information Kabbage has on you, the more funds you will qualify for. Of course, the bulk of the funds available to you will depend on your cash flow. When looking at your online selling accounts, they will consider many factors such as your selling rating, amount of transactions and feedback information.
I began filling out all of my information and then got to a point when I had to share my Amazon, eBay, Paypal and other information with Kabbage. I paused for a second as I did not know anything about this company. Was it safe? Could I trust Kabbage? What if Kabbage was a scam? I actually stopped and left my browser open until the following day when I would have more time to investigate the company.
The next day, I Googled and gathered as much information that I could about Kabbage but not enough to convince me to go on ahead and go for it. Back on my Kabbage screen, I said the heck with it. I clicked the buttons to share my information. Truthfully, after I did it, I wondered how I could be so stupid. Here I am sharing my information with a company that I did not know enough about. These people would be able to rip me off and take all of my money!
A few minutes later, after the processing was over, I received information from Kabbage that I qualified for $4000. This was actually a disappointment as it was far from the $50,000 I thought I would qualify for. I had to be glad with what I was offered though and requested the whole $4000. By the way, you do not have to take all of the money that they offer. If I wanted $1000, I could have taken that and left the other $3000 there. It would always be available if I needed it later. Within minutes, I checked my PayPal account, and I had an extra $4000 in there. Wow! I was so excited! I immediately began making my inventory list.
To pay back the funds, Kabbage will automatically debit the cash from your PayPal account. This is no long term loan though. A borrower will have up to six months maximum to pay back the money. Many borrowers pay back the loan sooner to pay less for the advance charges. Paying back the loan early can save you lots of money off of their already low fees of 1 percent to 12 percent the first two months and 1 percent after that for the remaining four months.
Let me give you an example of the advance fees associated with my $4000 loan. If I paid back the loan in six months, I would pay back $4,480 and have payments of $706 to $826 each month. If I paid them back in three months, the loan would cost me $4,360. Paying back the loan in one month would cost $4,160. As you can see, if you capitalize on your loan quickly and make a good profit, you may be able to pay back Kabbage quickly and decrease the amount that you will pay back to Kabbage. Another thing to note is that when you make a payment, the money becomes available to you again as it is added back to your Kabbage funds that are available.
After lots of research, as far as I know, there is no other company that offers working capital to online sellers in the United States like Kabbage does. I was very grateful to have found them. I have taken out numerous loans with them during the past year and a half I have used them, and they have never disappointed me. There was even one time when I was going to be short on my payment. I called them up and explained the situation to them, and they worked with me by delaying most of my payment to a later date.
Anyone who needs revenue to grow their online business will always want to have a Kabbage account available. Those who are wondering about trusting Kabbage should not have to stress the way I did. The company is perfectly legit and honest. They have supplied hundreds of millions of dollars to small business owners during their existence and will continue to do so for many years. No longer are people confined to only banks who frequently reject small businesses and decide everything based on a person's credit score. If you are a small business owner that needs funding for inventory or any other business reasons, I would seriously advice you to check out Kabbage.