Last updated on November 19th, 2024 at 12:57 pm
Small business owners always seek funding options to help grow their businesses. One option that has become popular in recent years is Kabbage Funding. However, in 2020, Kabbage was acquired by American Express1. Since then, people have wondered if Kabbage Funding is still as beneficial as it used to be. So, is Kabbage Funding good nowadays? Let’s dive into the details and find out.
What Is Kabbage Funding?
Kabbage Funding is a financial service that used to provide small business loans and lines of credit to help businesses grow. It was known for its fast and easy online application process. In 2020, American Express bought Kabbage, and now the loans are offered under the name “American Express Business Line of Credit.” While it’s not called “Kabbage” anymore, American Express continues to manage the loans and services that Kabbage started, but with some updates and changes.
American Express Acquisition of Kabbage:
In 2020, American Express bought Kabbage, a company known for providing quick loans to small businesses. This purchase allowed American Express to expand its business services. After the acquisition, Kabbage’s loan services became part of American Express, and the business line of credit is now offered under the American Express name.
While the Kabbage name is no longer used for new loans, American Express still manages the loans that were given through Kabbage before the purchase.
Is Kabbage Still Lending?
No, Kabbage is no longer lending under its original name. After American Express acquired Kabbage in 2020, the lending services were rebranded as the American Express Business Line of Credit. So, while Kabbage itself isn’t offering new loans, American Express now provides similar business loans that Kabbage used to offer. Any existing Kabbage loans are still managed by American Express.
The type of service that Kabbage initially started and became quite popular underwent some modifications, and American Express launched its own business line of credit based on that. All long-term Kabbage business loans taken earlier have now been integrated into this American Express line of credit. All loans previously provided by Kabbage have been closed, and any remaining loans are now handled by American Express at their level.
Is Kabbage Funding Good After the AMEX Acquisition?
Yes, Kabbage Funding is still considered good after the American Express acquisition. While the name has changed to American Express Business Line of Credit, the service continues to help small businesses with flexible funding options. American Express brings added trust, customer support, and resources, which many see as a positive change.
However, some features might be slightly different from what Kabbage originally offered, but overall, it’s still a good option for businesses in need of quick access to funds.
Was Kabbage for business only?
Yes, Kabbage was specifically designed for small business owners. It provided working capital loans through a line of credit, which businesses could access as needed. This allowed small business owners to:
- Get access to funds when they need them
- Help grow their business
- Handle unexpected expenses
Kabbage offered funding to a wide range of businesses, including those in the retail, service, and e-commerce sectors. It could be used for:
- Financing inventory
- Purchasing equipment
- Covering other business expenses
The application process for Kabbage was simple and only required basic information about the business and its financials. The company used advanced algorithms and data analysis to:
- Evaluate the creditworthiness of businesses.
- Provide funding to businesses that may not have qualified for traditional bank loans.
But now, after Kabbage was acquired by American Express, all the rules, regulations, and application processes are governed by American Express.
Major changes that happened after the acquisition.
Here are the major changes that happened after Kabbage was acquired by American Express:
- Name Change: After the acquisition, Kabbage Funding was rebranded as “American Express Business Line of Credit.” Kabbage no longer operates under its original name for lending purposes.
- Business Line of Credit: The core product, a business line of credit, is now offered through American Express. Though similar to Kabbage’s previous product, it now operates under Amex’s terms and conditions.
- Customer Support: All support and servicing for Kabbage loans and business lines of credit are now handled by American Express.
- Expanded Credit Line: Kabbage Funding, now part of American Express, offers a line of credit ranging from $2,000 to $250,000. The credit limit can vary based on the business’s financial profile and creditworthiness. This range allows small businesses to access funds flexibly as needed.
- Faster Approval Process: Small businesses can apply for the line of credit and get approved within minutes, which remains a key benefit from the original Kabbage model. This fast access to funding is still emphasized under American Express.
- Commitment to Supporting Small Businesses: American Express continues its broader mission of supporting small businesses, including initiatives like Small Business Saturday® and grants during the pandemic. This commitment is now tied to Kabbage’s original vision, making it a part of Amex’s overall support structure for small business growth.
These changes reflect how Kabbage’s original services have been fully integrated into the American Express ecosystem.
Conclusion
After American Express acquired Kabbage, the funding options for small businesses have continued under the “American Express Business Line of Credit” with some changes. While the Kabbage name is no longer in use for new loans, the core benefits—quick access to funds, a simplified application process, and a strong focus on supporting small businesses—remain. The addition of American Express’s trusted brand and resources has made this transition positive for many.
Faq’s
Is Kabbage Funding good after the AMEX acquisition?
Yes, Kabbage Funding is still considered good after the American Express acquisition. It provides similar benefits with the added support and reliability of American Express.
Can I still get a loan from Kabbage?
You can't get a loan from Kabbage directly, but you can apply for a business line of credit through American Express, which offers similar services.
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(Is Kabbage Funding Good After the AMEX Acquisition?)
Disclaimer: The information in this article is intended for general informational purposes only and does not constitute legal advice. Readers should consult with American Express for guidance specific to their situation. We have no affiliation with Kabbage, Inc. or American Express. We are a separate financial consulting company
