How do I apply for a Kabbage Loan after AMEX Acquisition

Last updated on November 19th, 2024 at 01:00 pm

Applying for a Kabbage loan after the American Express acquisition is straightforward. Since the acquisition, Kabbage has introduced new features and adjusted its eligibility criteria and application process to align with AMEX’s focus on small businesses. Here is a detailed, step-by-step guide to your question, how do I apply for a Kabbage loan under the new system?

Understanding the AMEX Acquisition of Kabbage

In 2020, American Express acquired Kabbage¹ to expand its offerings to small and medium-sized businesses. Since the acquisition, Kabbage loans have become part of AMEX’s small business products. The acquisition has brought additional resources and credibility, making Kabbage a more secure option for business financing.

Types of Loans Offered by AMEX

American Express now offers several types of loans and financial products for small businesses after acquiring Kabbage. Here’s a brief look at each option:

1. Kabbage Funding by AMEX: This is a flexible line of credit up to $150,000 for short-term needs like inventory or payroll. Businesses can borrow as needed and repay in 6, 12, or 18 month terms.
2. Kabbage Checking: A business checking account with no monthly fees, interest on deposits, and free ATM access, making it easy to manage funds and loan repayments in one place.
3. AMEX Business Loans and Merchant Financing (AMEX Business Blueprint): Offers loans up to $250,000 for bigger expenses, like expansion or equipment, with fixed monthly payments.
4. AMEX Business Credit Cards: These cards offer rewards, cashback, and cash flow management, ideal for daily business expenses.

Eligibility Requirements for a Kabbage Loan

To qualify for a Kabbage loan after the AMEX acquisition, applicants must meet specific eligibility criteria. These requirements may vary slightly depending on your business type and financial profile, but generally include:

• Business Age: Must be in operation for at least one year.
• Revenue Requirements: Minimum annual revenue of $50,000 or $4,200 per month over the last three months.
• Credit Score: While Kabbage typically accepts lower credit scores, AMEX’s oversight means higher credit scores (above 640) are more likely to be approved.
• Business Bank Account: Must have a business bank account, which Kabbage will use to assess cash flow.

How do I apply for a Kabbage loan?

Earlier when we used to apply for a Kabbage loan from the official website of Kabbage, its process was different. However, after the Amex acquisition, its process has changed a bit. Now it is applied from the website of American Express. To apply for it, follow the steps given below

Step 1: Visit the AMEX Website

Go to the official AMEX website and locate the loan application section. This is now integrated within the AMEX website but still labeled as Kabbage Funding.

Step 2: Register or Sign In

If you are new to AMEX, create an account by providing your email, and business information, and choosing a password. Existing Kabbage or AMEX users can sign in with their credentials.

Step 3: Provide Basic Business Details

You will need to fill out essential details about your business, including:

• Business name and type
• Country of Residence
• DOB
• Business address
• Tax ID (EIN)
• Business start date

Step 4: Connect Your Business Bank Account

Connecting your business bank account allows AMEX to assess your revenue and cash flow, a crucial part of determining your eligibility. The system will evaluate your account activity to make a creditworthiness decision.

Step 5: Submit Additional Documentation (if required)

AMEX may ask for:

• Business tax returns
• Profit and loss statements
• Additional bank statements, if needed for verification

Step 6: Review and Submit Your Application

Once all the required information is provided, review your application carefully. Double-check the accuracy of all information, then submit.

Documents Required for the Application Process

For a smooth application, gather these documents in advance:

1. Business Tax ID (EIN) – Essential for identity verification.
2. Bank Statements – At least three recent bank statements from your business account.
3. Financial Statements – If requested, submit profit and loss statements, balance sheets, or tax returns.
4. Proof of Business Ownership – Documents showing that you own or have a controlling interest in the business.

Application Process Timeline

The Kabbage loan application process can be quick, with approvals as fast as a few hours. Here’s a typical timeline:

• Application Submission: Complete in under 30 minutes.
• Document Review: 1-2 business days if extra documents are requested.
• Approval and Funding: Once approved, funds are deposited into your account within 1-3 business days.

Repayment Terms and Conditions

Kabbage Funding operates on a short-term loan model, where each draw from your line of credit creates a separate loan with a six, twelve, or eighteen month term. Key repayment terms include:

• Fixed Monthly Fees: AMEX charges a monthly fee based on the loan amount and term length. This fee structure differs from traditional interest rates.
• Automatic Payments: Payments are automatically debited from your business bank account.
• Early Repayment: You can repay the loan early without penalties. This can reduce your total fees, making it a cost-effective option if your cash flow improves.

Conclusion

Applying for a Kabbage loan through American Express offers small businesses flexible funding solutions, backed by AMEX’s strong reputation and enhanced resources. The streamlined application process, coupled with multiple loan options and clear eligibility criteria, makes it accessible for businesses with varying needs. Whether you’re looking for a line of credit, a business checking account, or larger business loans, AMEX provides a versatile suite of financial products to support growth.

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(How do I apply for a Kabbage Loan after AMEX Acquisition)

Disclaimer: This article is for informational purposes only. Loan terms and eligibility may vary, and American Express or Kabbage may change the application process and criteria. We have no affiliation with Kabbage, Inc. or American Express. We are a separate financial consulting company.

1. AMEX [↩]