How to Apply for a Cabbage Business Loan
Cabbage Business Loan makes it easy to apply for funding in 10 minutes through its website or mobile app. Follow these steps to apply for a loan from Kabbage Business Loan:
How to apply for a Cabbage Business Loan
You can apply for Kobi Line of Credit online. First, you will need to create and log in to your Cabbage Business Loanaccount. Then, you’ll connect your business checking account and any additional accounts to the Kabbage platform.
Cabbage will also ask for basic information about you and your business, including:
- Your name, home address and phone number.
- Your business name, address and phone number.
- Your business industry.
- Your business tax ID.
- Your social security number.
Before you submit your application, Cabbage will ask you to consent to a hard pull on your credit.
If Kobi can verify your information, you should receive a decision almost immediately. If your application requires further review, it may take four to seven business days for you to receive a decision.
If you’re approved for a Kabage Line of Credit, you’ll receive a loan agreement that outlines your credit amount, term length, and monthly fees. Cabbage will also provide a comparative APR to give you an idea of how much the line of credit will cost.
You must sign a personal guarantee as part of your loan agreement.
Keep in mind that when you draw on your line of credit, Kabbage has minimum withdrawal requirements based on the length of your term. For six-month terms, the minimum withdrawal amount is $500, for 12-month terms, the minimum is $10,000, and for 18-month terms, the minimum is $20,000.
Create an account Kabbage Business Loan
Begin the application process by navigating to the Kabbage Business Loan website or downloading the mobile app and creating an account. Existing American Express customers can apply for funds through Kabbage using their existing Amex login credentials.
Complete the online application.
Follow the onscreen prompts to provide application information such as your name, business name, industry, home and business addresses and phone number, business tax ID and Social Security Number (SSN). You must also consent to a hard credit inquiry into your personal and business credit.
Wait for verification and approval.
Based on the information provided, Kabbage reviews your financial health (and your business) and then approves or denies the application. If Kabbage can quickly verify your identity based on the application, this process may take a few minutes; However, it may take longer if additional information is required.
Sign the loan agreement. Once approved for a credit limit, decide how much to borrow initially and choose from available repayment terms. Note that not every borrower is approved for six-, 12- and 18-month terms. Finally, sign the loan agreement.
Funds usually reach the borrower’s bank account within three working days of signing the Business loan agreement. However, the speed of funding also depends on the borrower’s bank and may take longer.
Cabbage Review: Who Should Apply?
Kabbage’s APRs start lower than other lenders and Kabbage requires a minimum credit score of 640, so it can be a good source of funding for small business owners with reasonable credit.
Benefits of using Cabbage
One thing we love about Cabbage is that businesses can receive funds deposited into their account within three business days, making Cabbage a great choice for getting funding quickly and conveniently.
Disadvantages of using Cabbage
Cabbage fee structure is also a bit confusing to understand. Instead of using interest rates, Kabbage uses a monthly fee rate. These fees range from six-month tenure: 0.25% to 3.50%, 12-month tenure: 0.25% to 2.75%, 18-month tenure: 0.25% to 2.50%. Because Cabbage only offers short-term credit lines, they may not be suitable for all business needs. Additionally, Kabbage is not a good option if you need a term Business loan, more than $150,000 or a term of more than 18 months. The lender offers a line of credit products with amounts up to just $150,000 and terms of 6, 12 or 18 months.
Kabbage offers borrowers a line of credit for businesses. However, if you can shop around, you should evaluate other lenders to see if you qualify for a lower rate. Cabbage is also not suitable for businesses that want term loans or funds over $150,000.
To be eligible to apply for a small business line of credit from Cabbage, you must meet the following criteria:
- Credit score: 640 or higher
- Time in business: One year or more
- Annual Income: $50,000 or more in annual income
- Kabbage will also consider your business bank accounts to approve or reject your business.
Who is cabbage best for?
Cabbage is best for:
Borrowers with fair credit. Cabbage recommends applicants have a minimum personal credit score of 640 to qualify. Because this is lower than some top business lenders, Kabbage funding can be a good option for business borrowers with a reasonable FICO score.
Applicants seeking flexible loans. Cabbage business loans have repayment terms of six, 12 and 18 months and monthly fees accrue only on the outstanding balance. Monthly fees are as follows: 6-month terms charge between 0.25% to 3.50%; Fees of 0.25% to 2.75% for 12-month terms; And 0.25% to 2.50% fees are charged for 18-month terms.
Borrowers can take out more than one loan against their line of credit at a time, but not all borrowers qualify for all three repayment term offerings.
established businesses. To qualify for Cabbage funding, a business must have been operating for at least one year. For this reason, the financing tool is more suitable for established businesses than for startups.
Cabbage is not suitable for whom
Kabbage’s business line of credit may not be eligible for:
New businesses. Businesses that have been operating for less than a year – and that do not have business verification – are not eligible for Cabbage funding. Instead, new business owners may need to apply for a startup Cabbage business loan to access the cash they need.
Applicants who prefer longer payment terms. The maximum repayment period for Cabbage Business Installment Loans is 18 months – less than other top lenders. Applicants seeking cash for their business over a longer period of time should consider other lenders.
Borrowers who need same day access to funds. It usually takes up to three business days for borrowers to receive their funds and may take longer depending on the borrower’s financial institution. Business owners who need quick access to cash should choose a lender that offers same- or next-day funding.
What does cabbage give?
Cabbage offers only one Cabbage business loan product – a business line of credit backed by American Express. Business lines of credit work differently than traditional Cabbage business loans: you draw from them as needed, pay interest only on the amount you draw, and can use your limit again when you pay off your balance. In comparison, a business loan requires you to pay interest on your entire approved amount and you receive the funds as a lump sum payment.
How to Qualify for a Cabbage Business Loan
Business loan applications are approved or rejected based on a number of factors. All lenders have their own unique underwriting requirements, but they usually include information on the applicant’s credit profile and other factors that indicate the ability to repay the loan, such as business income. Meeting the requirements below will not guarantee approval, but it can help you decide if a Cabbage business loan is right for you.
Personal credit score
Cabbage recommends applicants have a minimum personal credit score of 640 to qualify for a loan. Lenders also look at a business’s business report but do not publish the required minimum business credit score.
Time in business
To qualify for a Cabbage Business Line of Credit, an applicant must be in business for at least one year. Likewise, a business must have a business checking account where funds can be disbursed.
Kabbage does not publish its minimum annual income requirements for business financing applicants. However, there is a minimum monthly income requirement of $3,000. Lenders indicate that the annual income of the business may affect the credit limit for which it qualifies.
We reviewed Kabbage based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and application process. We’ve rated Cabbage based on the weight assigned to each category:
- Loan Cost: 35%
- Loan Details: 25%
- Customer Experience: 20%
- Eligibility and Accessibility: 10%
- Application Process: 10%
Within each major category, we’ve also considered certain features, including available loan amounts, repayment terms, and applicable fees. We also looked at minimum credit score and business requirements, timing and geographic availability of the lender. Finally, we evaluated Kabbage’s customer support tools, borrower benefits, and features that make the borrowing process easier—such as online applications, prequalification options, and mobile apps.