FAQs about Kabbage
Q: What is Kabbage?
A: Kabbage is a technology-based company that offers business funding to small businesses who are struggling with cash flow. You think you need quick cash for your business so you found them online while searching.
Q: Why would a business owner borrow from Kabbage?
A: Kabbage claims to offer an application decision within minutes, as well as immediate access to funds. Through the use of technology, the company uses digital information about a business, such as business performance and credit score, to determine eligibility for a loan. The company offers lines of credit up to $250,000 in all 50 states. Loans can be used for any working capital needs, including inventory, renovations, payroll, etc.
Q: How are loans repaid to Kabbage?
A: Kabbage offers lines of credit, including 6-, 12- or 18-month installment loans. A business will have one line of credit, but may withdraw several loans from the line of credit. Each loan has its own loan agreement and loan terms. Additionally, borrowers pay fees on the loan amount, not the line of credit. Loans are also unsecured. However, the creditor requires a personal guarantee. The business repays an equal amount each month. The length of the loan term and the lender’s business performance determine interest rates. Additionally, the creditor may even require you to sign a confession of judgment. The kind of debt cycle that can result from loans with Kabbage can often lead to default.
Q: Where is Kabbage located?
A: 925B Peachtree Street NE
Atlanta, GA 30309