Borrowers can access a commercial line of credit, issued by American Express National Bank, for:
- Financing equipment.
- Covering payroll.
- Hiring staff.
- Purchasing inventory.
- Paying for marketing.
Not all industries will be eligible for a line of credit.
You can start by checking whether you are eligible for preapproval without a hit to your credit score. If you meet requirements such as having an active American Express card with at least six months of account history and being in business for at least a year, you can apply for preapproval from your AmEx online account.
If you are not an American Express customer and you apply, Kabbage Funding will use hard pulls that can affect your credit to obtain reports from consumer and commercial reporting agencies. Expect the lender to gather and verify information about your business. The lender confirms your company’s identity using bank data and collects details such your business name, your home and business addresses, and your business tax ID.
If you meet all eligibility requirements, “You may be approved quickly for a line of credit,” according to the lender’s website. After you sign the loan agreement and draw on the line of credit, the money is sent to the account you designate for disbursement and could take one to three business days to process and post.
Limited-time offer: If you are approved for a line of credit and then add and verify a primary account for deposit and repayment by Sept. 30, 2022, you will get $200 in that account.
Credit line amounts range from $2,000 to $250,000, but you may be eligible for a larger line of credit based on an evaluation of your business.
Each draw on the line of credit will result in a separate six-, 12-, or 18-month installment loan, depending on eligibility and loan amount. Monthly fees range from 2% to 9% for six-month loans; 4.5% to 18% for 12-month loans; and 6.75% to 27% for 18-month loans. Loans incur a fee for each month you have an outstanding balance, and late fees may be assessed. All loans are secured by business assets, and every loan requires a personal guarantee.
Borrowers must satisfy minimum criteria, including:
- Have a FICO score of at least 640 when you apply.
- Start your business at least a year ago.
- Generate an average monthly revenue of at least $3,000.
- Be at least 18.
- Meet creditworthiness and other requirements.
Minimum withdrawals are $500 on a six-month loan; $10,000 on a 12-month loan; and $20,000 on an 18-month loan. Not all term lengths are available to all customers, and eligibility is based on creditworthiness and other factors.
Applicants need a FICO credit score of at least 640. All businesses are unique and are subject to approval and review, according to the Kabbage Funding website.
Kabbage Funding is available nationwide and in the U.S. territories.
American Express, which includes American Express National Bank, receives an A+ from the Better Business Bureau but is not accredited by the BBB. Trustpilot gives Kabbage an average rating of 3.2 out of 5 stars based on more than 6,750 reviews.
Contact Kabbage Funding at 888-986-8263 from 8 a.m. to 9 p.m. Eastern Time Monday through Friday and from 10 a.m. to 6 p.m. Eastern Time Saturday.
The lender says you can apply online in minutes and securely link business bank accounts to your application, which may be necessary to determine your eligibility. You will designate a primary account for loan funds to be deposited, and the same account can be used for automatic payments. Manage your account from any electronic device or through the Kabbage mobile app, which you can download in the Apple or Google app stores.
- Small business owners who have at least fair credit.
- Small businesses that need cash quickly.
- Small businesses that prefer a short repayment term.
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