Is your Kabbage loan in default?
Bottom line: Kabbage debt can still be resolved, even though the Kabbage brand no longer exists. If your business fell behind on a Kabbage loan or an American Express Business Line of Credit, Tayne Law Group, P.C. can negotiate with the creditor or its collectors to settle the balance and be done with the debt.
Kabbage quick facts
- Company: Kabbage, Inc., an online business lender founded in 2009 in Atlanta, GA
- Current status: Brand retired in February 2023. The product now operates as the American Express Business Line of Credit through American Express Business Blueprint
- Product: Business lines of credit from $2,000 to $250,000, repaid in 6, 12, 18, or 24 month terms with monthly fees
- Legacy PPP loans: Serviced by KServicing, a separate company that filed for bankruptcy in 2022
- Collectors we often see: National Check Resolution and TBF Financial
Struggling with your debt?
What happened to Kabbage?
On August 17, 2020, American Express announced that it was acquiring Kabbage. In February 2023, American Express retired the Kabbage name. The same line of credit product now operates as the American Express Business Line of Credit inside the Business Blueprint platform.
If your business borrowed from Kabbage before the rebrand, the debt did not go away. It is now owed to American Express or to a collection agency working on its behalf. Older Kabbage Paycheck Protection Program loans were handled by a separate company called KServicing, which filed for bankruptcy in 2022.
Is a Kabbage loan the same as a merchant cash advance?
No. Kabbage marketed itself as an alternative to merchant cash advances. Its product is a true line of credit with monthly payments, not an advance repaid through your daily sales.
The debt problems look very similar, though. Short terms, layered fees, and a personal guarantee can drain a business’s cash the same way an MCA can. That is why we treat Kabbage and Amex line of credit debt with the same urgency as MCA debt.
What happens if you default on a Kabbage or Amex business line of credit?
Each draw on the line of credit is its own loan with its own repayment schedule. Falling behind on one draw can put the entire account in default.
These lines of credit are unsecured, but they require a personal guarantee. That means the creditor can pursue you personally for the unpaid balance, not just your business.
In our experience, National Check Resolution and TBF Financial often collect on defaulted Kabbage accounts. If your debt is on a personal American Express card rather than a business line of credit, we can help with that too.
What to do if you can’t keep up with payments
- Do not ignore notices from American Express or a collector. Deadlines matter, and silence usually speeds up collection activity.
- Gather your loan documents, including the credit agreement and your personal guarantee.
- Check your state’s UCC records for any lien filed against your business assets.
- Do not take on new debt to cover the payments. Borrowing to pay this loan usually deepens the hole.
- Talk to a debt relief attorney before agreeing to any payment plan a collector offers.
How Tayne Law Group can help
Tayne Law Group has more than 25 years of experience resolving business debt and has settled Kabbage accounts directly. For example, we settled a Kabbage loan of more than $16,000 for $7,000, interest free. We also settled an $18,000 balance for half of what was owed.
We negotiate with the creditor or its collectors so you can focus on running your business. Our goal is to resolve the debt, protect what you have built, and help you avoid bankruptcy.
We also help business owners with debt owed to other online business lenders and MCA funders, including OnDeck Capital, CAN Capital, Credibly, and Rapid Finance.
Call 866-890-7337 or reach us through our contact form to start with a free phone consultation. The call is always free.
Struggling with your debt?
FAQs about Kabbage
Kabbage was an online lender founded in 2009 that offered fast business lines of credit to small businesses. American Express acquired the company in 2020 and retired the Kabbage brand in February 2023.
Not under that name. The product now operates as the American Express Business Line of Credit through the Business Blueprint platform. If you still owe money on a Kabbage account, the debt is still valid and collectible.
In many cases, yes. Tayne Law Group has settled Kabbage balances for significantly less than what was owed. Every situation is different, so results depend on the facts of your case.
Yes. A UCC lien can block your business from getting financing or selling assets, and it does not always come off on its own. Learn how to remove a UCC filing or contact us for help.
KServicing is the separate company that serviced Kabbage’s Paycheck Protection Program loans after the American Express acquisition. It filed for bankruptcy in 2022. If a notice you received mentions KServicing, it likely relates to a PPP loan rather than a line of credit.
Leslie H. Tayne, Esq. is a New York debt relief attorney and the founder of Tayne Law Group, P.C. With more than 25 years of experience, she focuses on consumer and business debt resolution, including merchant cash advance (MCA) debt, credit card debt, and small business debt. Leslie earned her J.D. from Touro Law Center and holds a B.A. in Public Affairs from SUNY Albany.
She is the author of Life & Debt: A Fresh Approach to Achieving Financial Wellness. A New York Super Lawyer from 2015 to 2024, Leslie is regularly quoted as a financial expert by CBS News, Forbes, The Wall Street Journal, CNBC, Consumer Reports, and other national outlets.