Kabbage Business Checking Account - 2022 Review

For SMB owners, a Kabbage business checking account can be an attractive option. With minimal fees and a competitive interest rate, Kabbage simplifies financial management.

In this article, Kabbage Checking will be put under the microscope, in an in-depth review of its features.

If you're a business owner looking to expand into international markets, then a Wise business account may be the solution for you. With access to the mid-market exchange rate, the ability to hold more than 50+ currencies and send money to over 70+ countries, a Wise Business account has a lot to offer for international businesses.

Learn more about Wise Business

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Table of Contents
What is Kabbage checking? Kabbage checking - Funding Kabbage payment processing Kabbage debit card Kabbage fees Is Kabbage legit? Kabbage app Kabbage reviews Kabbage vs BlueVine

What is Kabbage checking?

Kabbage Checking is an online business checking account with minimal fees, no minimum opening deposit or minimum balance requirements, and a competitive rate of interest. 

Kabbage Checking is an attractive option for small businesses wanting to manage their finances online, while not being restricted by fees and minimum balance requirements. 

A Kabbage Checking account can also be integrated with Kabbage Funding, Payments and Insights, making it ideal for those looking to take out a line of credit in the present to near future.

Pros	Cons
Integration with other Kabbage services No minimum opening deposit or balance requirements¹ Access to the 19,000 ATMs free of fees across the US² Earn with Kabbage Checking - a 1.10% APY on balances up to $100,000³	No joint accounts⁴ Fee of $4.95 for cash deposits⁴ No third party integrations

Find the best online business bank account for your own business with the help of this review. Choosing the right option shouldn’t be time consuming.

How to apply for Kabbage checking

There are different requirements to open a Kabbage Checking account depending on whether you’re a sole proprietorship, partnership or LLC.

Nevertheless, the standard documents and information you’ll need to provide are:

• Your Employer Identification Number (EIN)

• Personal identification (passport or driver's license)

• Certificate of assumed name/DBA

• Basic information about you and your business⁵ 

Kabbage checking - Funding

Kabbage Funding gives you flexible access to a line of credit ranging between $1,000 to $150,000 and does not require a deposit in order to apply.⁶ 

Once you’ve been approved for a given line of credit, you can then take out loans from your line.

For example, if your line of credit is $50,000, your business can take out separate smaller loan installments of $10,000 from this maximum amount as needed. 

This means you only need to pay fees on each loan, rather than on the total line of credit, giving you flexible access to credit.⁶

Kabbage Funding loans come with a monthly loan fee each time you have an outstanding balance. Aside from this, Kabbage Funding has no documentation fees, annual fees, monthly maintenance fees, or origination fees.⁷

How to apply for Kabbage Funding

To apply for Kabbage Funding, your business will need to:

• have been operational for at least 12 months

• have a business checking account

• satisfy Kabbage’s credit worthiness criteria

Once your identity and bank account have been verified, Kabbage should send your loan to your business checking account within 3 business days. 

Kabbage Funding is available to businesses across all 50 US states and territories.⁸ 

Kabbage payment processing

Kabbage deposits

If you have up to $100,000 USD deposited in your Kabbage Checking account, including your reserve balances, then you can earn an annual percentage yield (APY) of 1.10%.³

Reserve balances are sub-balances within your Kabbage account where you can set money aside, managing your payments conveniently.

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There are approximately 90,000 participating retailers in the US where you can deposit money in your Kabbage Checking account, for a fee of $4.95 USD.⁹ Worth noting that Kabbage Checking has a maximum daily deposit limit of $5,000 USD.⁹

💡 You can also deposit checks via the Kabbage Checking mobile app.⁹
This is done simply by taking a photo of the check and following the necessary steps. In order to be eligible to deposit checks via the mobile app, you first have to enroll in the mobile check deposit system. To do this, you’ll need to complete an identity verification process, as well as make an initial deposit into your Kabbage Checking account by ACH transfer.⁹

How long does it take for Kabbage to deposit money?

Settlement for Kabbage deposits take around five business days to appear in your account, though this can vary. 

Kabbage states that transactions processed before 5pm ET will be deposited into your account on the next banking day, while transactions processed after 5pm ET will be deposited within two banking days. 

Similarly, these time frames can also be delayed if the transaction is flagged for review.²⁰

Kabbage withdrawing

A Kabbage Checking account gives you fee-free access to over 19,000 ATMs nationwide. 

Kabbage also doesn’t charge any out-of-network withdrawal fee, making withdrawals potentially cheap. Customers with a Kabbage Checking account have a maximum daily withdrawal limit of $2,000.¹⁰

💡 Kabbage Debit card
After opening a Kabbage Checking account, you’ll be sent a Kabbage debit card that can be used for deposits, ATM withdrawals and online.  You should receive your Kabbage debit card within 5-7 business days after opening your account.¹¹

Save Time and Money On Overseas Payments With Wise Business

Wise Business can help you save big time on international payments.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies.

Signing up to Wise Business allows access to BatchTransfer which you can use to pay up to 1000 invoices in one go. This is perfect for small businesses that are managing a global team, saving a ton of time and hassle when making payments.

Use Wise Business >>

Some key features of Wise Business include:

• Mid-market rate: Get the mid-market exchange rate with no hidden fees on international transfers

• Global Account: Send money to countries and hold balances in multiple currencies, all in one place. You can also get major currency account details for a one-off fee to receive overseas payments like a local

• Access to BatchTransfer: Pay up to 1000 invoices in one click. Save time, money, and stress when you make 1000 payments in one click with BatchTransfer payments. Access to BatchTransfer is free with a Wise Business account

• Auto-conversions: Don't like the current currency exchange rate? Set your desired rate, and Wise sends the transfer the moment the rate is met

• Free invoicing tool: Generate and send professional invoices

• No minimum balance requirements or monthly fees: US-based businesses can open an account for free. Learn more about fees here

Kabbage fees

One of Kabbage’s stand out features is its lack of fees. There are no setup fees, no minimum balance requirements and no monthly maintenance fees. 

Similarly, there are no in- or out-of-network ATM withdrawal fees (except you might get charged a fee by the ATM operator if using out-of-network ATMs), and debit card replacement is free of charge.⁴

In addition to this, you can withdraw money from your Kabbage checking account, free of fees, at over 19,000 different ATM locations across the US.²

The only Kabbage fees that exist are:

• A cash deposit fee, varying by retailer, of up to $4.95 USD

• A payment order fee for outgoing domestic wire transfers of $25 USD per transaction

• A teller cash withdrawal fee of $3.00 per transaction

• A foreign transaction fee of 3% of the total transaction amount

• A fee for paper checks - $20 USD for 100 6-inch checks, $125 USD for 250 8-inch checks⁴

Is Kabbage legit?

Kabbage checking is a legitimate banking platform, using industry standard security measures. 

Kabbage uses data encryption, information access authorization controls and firewalls.

It doesn’t see your banking credentials and has read-only access to your banking information. In addition to this, Kabbage does not sell your information to third-parties.¹² ¹³

Is the Kabbage checking account FDIC insured?

Kabbage partners with Green Dot Bank, Member FDIC. This means that funds in your Kabbage checking account are insured to the standard Federal Deposit Insurance Corporation (FDIC) limit of $250,000.⁴ ¹⁹

Kabbage App

The ‘Kabbage: Small Business Loans’ app for IOS and Android offers its users Kabbage Checking, Funding, Insights and Payment solutions. 

Users can access their Kabbage checking account, take out a line of credit of up to $150,000 USD, and accept payments via invoices and custom payment links. 

The Kabbage app receives an average review score of 4.9 out of 5 on the Apple store and 4 out of Google Play store.¹⁴ ¹⁵

Kabbage reviews

Trustpilot Kabbage checking reviews have an average review score of 3.4 out of 5. Users praise Kabbage for its speed and ease of service. Here are just a few Kabbage reviews:

A straightforward process, with a painless application process with answers in a few minutes”

“The process from loan approval to transfer is so quick and easy. Highly recommend to business owners who need immediate access to funds”

“They were very quick and I got approved within minutes. Thanks to Kabbage”¹⁶

That being said, users have also suggested some points for improvement. Existing customers have said that the Kabbage interest rate on business loans is somewhat high and that, in some cases, loan applications have taken a while to be approved.

Kabbage vs BlueVine

Kabbage and BlueVine are two loan providers with a range of additional features.

Kabbage	BlueVine
Possible to take out a line of credit Offers a debit card and ability to make cash deposits Earn an APY of 1.10% on your savings	Possible to take out a line of credit Offers a debit card and ability to make cash deposits Get a 1,5% rate on your savings¹⁷ Invoice factoring: allowing you to sell outstanding invoices and receive cash quickly¹⁸

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All in all Kabbage offers desirable benefits and a relatively low cost account, not to mention Kabbage Funding which really gives the edge of the Kabbage checking account.

To get the best option for your business it's always worth considering alternatives, so here's a list of other mentionable business accounts. Such as Wise Business
Veem BlueVine Novo Adyen payment processing for businesses Credit Union business account Simple Bank business account Axos Mercury

Join Wise Business today

Sources:

1. Kabbage - Business checking pricing
2. Kabbage - Features
3. Kabbage - Features
4. Kabbage - Checking account
5. Kabbage - Documents to open a business account
6. Kabbage - Funding loans
7. Kabbage - Funding
8. Kabbage - Apply for funding
9. Kabbage - Checking Deposits
10. Kabbage - Checking ATM
11. Kabbage - Checking debit card
12. Kabbage - Legal
13. Kabbage - Funding security
14. Apple.com - Kabbage
15. Google Play - Kabbage
16. Trustpilot - Kabbage
17. BlueVine - FAQ
18. BlueVine - Invoice factoring
19. FDIC - Deposit Insurance
20. Kabbage - Settlement Proceeds for your Payments

All sources checked 5 May 2022