Kabbage is a fintech company that offers a business checking account.
Alyssa Powell/Business Insider
Update: Kabbage is no longer accepting new applications for the Kabbage Business Checking Account. This review is meant to help existing Kabbage customers understand their account. You’re also still able to take out a commercial line of credit with Kabbage.
The bottom line: If you’re looking for a free business checking account with a high interest and can maintain less than $100,000 in your account, Kabbage Business Checking Account may offer a great option. However, if you want a joint bank account or think you’ll need to make frequent domestic wire transfers, other options may fare better.
Kabbage also might be ideal if you’re a small business owner who wants to apply for a commercial line of credit. You can get credit lines from $2,000 to $250,000. If you’re approved, there’s also a $200 cash bonus that’s easy to earn.
Kabbage Business Checking
The Kabbage Business Checking Account is a free business checking account with no opening minimum deposit. It’s unique to other business checking accounts in that pays Kabbage Business Checking Account for account balances up to $100,000.
Kabbage doesn’t offer joint bank accounts. If you also make frequent domestic wire transfers, there’s a $25 fee for each outgoing transaction.
Kabbage Funding
Kabbage Funding lets you apply for commercial lines of credit. You can get credit lines from $2,000 to $250,000.
According to Kabbage Funding, the approval process takes just a few minutes through the company’s website.
To be eligible, you must be over the age of 18, have a FICO score of 640 or higher, and have an average monthly revenue of $3,000 or more. You also need to have been part of a business for 12 months or more, and own a business checking account (the account doesn’t have to be with Kabbage). Otherwise, your account may need to be reviewed manually to see if you are approved.
Once your account is approved, you can see whether you are eligible for drawing lines of credit in 6-month, 12-month, or 18-month installments.
Kabbage Funding doesn’t have any origination fees, application fees, or annual fees. You’ll pay a monthly fee on your line of credit that varies depending on the loans you are qualified for. The 6-month loans monthly fees range from 2% to 9%, 12-month loans have a monthly fee ranging from 4.5% to 18%, and 18-month loans range from 6.25% to 27%.
If you apply for a line of credit by September 30, 2022, you may also be eligible for a $200 cash bonus. Once you’re approved for a line of credit, all you need to do is link your business bank account by September 30, 2022, and the money will be deposited into your Funding account 30 days after your account is verified.
How Kabbage works
Kabbage is a fintech company that was acquired by American Express in 2020. Kabbage’s business checking account is FDIC insured through Green Dot Bank. Meanwhile, Kabbage Funding loans of credit are issued by American Express National Bank.
Customer support is available weekdays from 8:00 a.m. to 9:00 p.m. ET. There’s also a help center that answers frequently asked questions about its products.
The Kabbage mobile app has a 4.9 out of 5 rating on the Apple store and a 3.6 out of 5 rating on the Google Play store.
Kabbage trustworthiness and BBB rating
Kabbage doesn’t have a Better Business Bureau trustworthiness grade yet. However, its banking partners, Green Dot Bank and American Express National Bank, do have BBB ratings. Green Dot Bank has a B+ rating from the BBB, due to a high volume of customer complaints against the bank. American Express National Bank has an A+ rating from the BBB.
A good BBB rating won’t necessarily guarantee that your relationship will a company will be positive. To get a better idea of whether Kabbage will be right for you, get perspectives from other business owners.
As of May 2021, Congress opened an investigation involving potentially fraudulent Payment Protection Program loans that were processed by Kabbage and a few other fintech companies. Through the investigation, Congress will decide whether Kabbage and the company’s partner companies had sufficient checks in place to prevent fraud.
If these recent public controversies don’t sit well with you, then you may prefer to look at other banking options.
Kabbage vs. BlueVine
We compared Kabbage business banking to two other online business banking options: BlueVine and NBKC Bank.
Kabbage
Bluevine
Max. free monthly transactions from checking
Unlimited
Max. free monthly transactions from checking
Unlimited
Standout feature
Interest paid
Standout feature
Interest paid
Kabbage and BlueVine business banking both offer only one business account option — a business checking account.
Both checking accounts tick a lot of boxes that may be appealing to business owners: There are no minimum opening deposits, no monthly maintenance fees, and unlimited monthly transactions with both accounts.
You can earn a slightly higher APY with the Kabbage Business Checking Account. However, BlueVine’s account charges less on outgoing domestic wire transfer fees.
Kabbage vs. NBKC Checking
Kabbage
NBKC Bank
Max. free monthly transactions from checking
Unlimited
Max. free monthly transactions from checking
Unlimited
Standout feature
Interest paid
Standout feature
No minimum opening deposit
If you’re in search of a bank that offers multiple business account options, NBKC Bank may be better suited for you. NBKC Bank has business checking accounts, business money market accounts, and business CDs.
You’ll probably prefer Kabbage if you’re looking for a solid interest-earning checking account. You’ll also get a higher interest rate through the Kabbage Business Checking Account than the NBKC Business Money Market Account.
Frequently asked questions
What is Kabbage?
Kabbage is a fintech company that’s partnered with national banks. Kabbage offers a business checking account and commercial lines of credit.
Who can open a Kabbage Checking Account?
Kabbage Checking can be opened by any small business owner who wants to open a free checking account. However, the Kabbage Checking Account is not accepting new applicants at this time.