topic Re: amex (kabbage) line of credit in Business Credit

amex (kabbage) line of credit

jdsinm — Mon, 10 Jul 2023 00:00:39 GMT

Hello,

This if for what they call their business line of credit (which appears to be what kabbage used to offer/i have not ever had the kabbage loc). Applied 6/21 for this off a mailer. There was no “preapproved” amex language like there is on the mailers for credit cards. There was a $250 bonus if approved offer and with amex soft inquiry history, I thought why not as it would be good to have it in reserve biz credit.

It autofills almost everything if you’re an existing cardholder. You have to link your applicable checking accounts you want as to factor into the approval. They use a third party company that has you put in your user id/password to link. I will say the interface for the linking doesn’t seem to be able to distinguish if a checking account is a biz account or not and relies on you telling it that.

I reported 90K business income and linked two biz (legit biz accounts) checking accounts that showed better then that flow through the accounts.

Went into a review/we will let you know it may take up to 30 days.

Got an email from an amex/kabbage rep (email still had kabbage signature) saying they needed to talk to me. Phone tag for a few weeks with the holiday and finally talked to them today. They said the accounts needed to be “relinked” via the website for whatever reason. Once that happened the system would be able to process the app automatically, etc.

I went online found the two accounts showing up on the main web page looked accurate, but clicked through the “relink” button and preceded again. Approx. less then 60 second after doing that, I got a new message in the online systemand email that said I was approved.

Amount 25100 (don’t ask me about the 100).

Something to note, about 10 minutes later, I got a “inquiry” email from my various services that my Experian had been pulled for this. I read all the fine print on the mailer/letter and it doesn’t say this was a possibility and it didn’t say that as a possibility on any of the screens when applying (I screenshot them all, so I went back and read them again). I did some research on the forum and see some people have indeed gotten a hard inquiry for this too. I am not going to bother trying to fight he inquiry, because the result was worth it imo.

EDIT-UPDATE

Forgot to put that i qualified for the lowest fees/interest. Basically 3% for 6 months, 6% for for 9 months, 9% for 12 months. This makes it very decent vs current prime rate based borrowing.

I’ll update the post once I get a DP on if the $250 gets paid.

General info-

Single amex personal and single amex biz.

Personal is apprx 4.5 years old/ Biz is 1.5 years old

Limit on personal is approx. 23.5 and biz is very close to that.

Had a 0 balance on my amex personal and 0 balance on my biz card

They pulled experian personal with a cali address

No idea if they pulled bus credit

0 inquiry when pulled

Sole P not using an EIN

Score in the 720-730 range

5 year plus old business- 1.5 years of biz credit

18% overall credit card usage/ 14 accounts (personal)

25% overall credit card useage/ 4 accounts (business)

1 outstanding loans/revolving credit (no auto or home)

Personal Income in solid 6 digit area

Credit age 14 years

Re: amex (kabbage) line of credit

cashorcharge — Fri, 07 Jul 2023 05:09:57 GMT

WooHoo!! Congratulations on your Approval!!👏🏼🍾🥂

Re: amex (kabbage) line of credit

JoeRockhead — Fri, 07 Jul 2023 11:58:24 GMT

Nice approval and DPs, congratulations!

Re: amex (kabbage) line of credit

Kasuito39 — Sat, 08 Jul 2023 08:33:17 GMT

Congratulations on your approval

Re: amex (kabbage) line of credit

URHomeInvestments — Sun, 09 Jul 2023 19:34:29 GMT

Prettt darn good situation, given no EIN and sole prop.

Re: amex (kabbage) line of credit

jdsinm — Mon, 10 Jul 2023 00:04:04 GMT

@URHomeInvestments wrote:
Prettt darn good situation, given no EIN and sole prop.

abs it is.

WIth the interest rate almsot make it worth someones time to park the money in an account and make 2-3% off the money.

Re: amex (kabbage) line of credit

FireMedic1 — Mon, 10 Jul 2023 21:54:19 GMT

Nice. Congrats!

Re: amex (kabbage) line of credit

jdsinm — Mon, 17 Jul 2023 00:25:16 GMT

Just data point update-

The $250 bonus was paid to my linked checking account (required yet another confirmation before linking) within 3 business days of confirmation.

Re: amex (kabbage) line of credit

jdsinm — Thu, 10 Aug 2023 06:37:20 GMT

Data Point updates on how the product works-

1. each use of the line of credit is bascially considered a loan you take out and each one is "seperate". Each one creates essentianlly a new seperate agreement that you must personally gurantee.

2. the loan does not cause a hard credit inquiry.

3. the loan does not show up on your personal credit.

4. you can pay back before whatever end period you choose and not have an extra fee

5. you at a minimum will pay one month of the fee

6. there is no other fees other then the initial fee vs the period your choosing (6/12/18 months)

Ive done a few and paid back on basically one month period and also have two outstanding. I am doing this to generate some flow on the product.

IMO this is a really solid product if you need to float some cash for between 1-3 months. If you choose a 6 month period and have the lowest fees/interest (3%), that means you can eseentally float the capitol for between .5% to 1.5% costs, which is about impossible to do some other way in the current market.

Re: amex (kabbage) line of credit

SouthJamaica — Sat, 12 Aug 2023 16:34:47 GMT

@jdsinm wrote:
Hello,

This if for what they call their business line of credit (which appears to be what kabbage used to offer/i have not ever had the kabbage loc). Applied 6/21 for this off a mailer. There was no “preapproved” amex language like there is on the mailers for credit cards. There was a $250 bonus if approved offer and with amex soft inquiry history, I thought why not as it would be good to have it in reserve biz credit.
It autofills almost everything if you’re an existing cardholder. You have to link your applicable checking accounts you want as to factor into the approval. They use a third party company that has you put in your user id/password to link. I will say the interface for the linking doesn’t seem to be able to distinguish if a checking account is a biz account or not and relies on you telling it that.
I reported 90K business income and linked two biz (legit biz accounts) checking accounts that showed better then that flow through the accounts.
Went into a review/we will let you know it may take up to 30 days.

Got an email from an amex/kabbage rep (email still had kabbage signature) saying they needed to talk to me. Phone tag for a few weeks with the holiday and finally talked to them today. They said the accounts needed to be “relinked” via the website for whatever reason. Once that happened the system would be able to process the app automatically, etc.

I went online found the two accounts showing up on the main web page looked accurate, but clicked through the “relink” button and preceded again. Approx. less then 60 second after doing that, I got a new message in the online systemand email that said I was approved.
Amount 25100 (don’t ask me about the 100).

Something to note, about 10 minutes later, I got a “inquiry” email from my various services that my Experian had been pulled for this. I read all the fine print on the mailer/letter and it doesn’t say this was a possibility and it didn’t say that as a possibility on any of the screens when applying (I screenshot them all, so I went back and read them again). I did some research on the forum and see some people have indeed gotten a hard inquiry for this too. I am not going to bother trying to fight he inquiry, because the result was worth it imo.

EDIT-UPDATE
Forgot to put that i qualified for the lowest fees/interest. Basically 3% for 6 months, 6% for for 9 months, 9% for 12 months. This makes it very decent vs current prime rate based borrowing.

I’ll update the post once I get a DP on if the $250 gets paid.

General info-
Single amex personal and single amex biz.
Personal is apprx 4.5 years old/ Biz is 1.5 years old
Limit on personal is approx. 23.5 and biz is very close to that.
Had a 0 balance on my amex personal and 0 balance on my biz card
They pulled experian personal with a cali address
No idea if they pulled bus credit
0 inquiry when pulled
Sole P not using an EIN
Score in the 720-730 range
5 year plus old business- 1.5 years of biz credit
18% overall credit card usage/ 14 accounts (personal)
25% overall credit card useage/ 4 accounts (business)
1 outstanding loans/revolving credit (no auto or home)
Personal Income in solid 6 digit area
Credit age 14 years

Inspired by your post, I tried to apply one day, but couldn't log in because of the site's confusion with some ancient Kabbage login I had in the past.

Eventually applied again, this time was able to get past the login situation, had to upload some documents, and got an HP on EX.

A day or two later it appeared that their "linking" of my business account isn't working right, and

I got a message which suggests that they're not seeing the correct revenue. Their user interface gives me no way of replying to the message, uploading documents, or otherwise communicating with them, other than by phone.

Rather than call them, I'm going to just let it play out. If this site is as inept as it appears, I'm better off not getting involved.

Re: amex (kabbage) line of credit

SouthJamaica — Mon, 14 Aug 2023 13:03:38 GMT

Update:

I was approved for a very low, $2k, limit.

The fee for a 6 month loan, repayable in 6 monthly instalments, is 18%, tantamount to 36% APR, with most of the interest paid during the 1st 2 months. I'm guessing they use the "fee" model rather than "interest" model in order to evade the usury laws.

I.e., this is a useless addition to my business credit. I will never use it.

The good news is that (a) I'm picking up $250 for having wasted my time, and (b) I don't have to tell my bookkeepers about it since I'm not going to use it

I would not recommend this product.

@jdsinm reports getting a fee of "3% for 6 months, 6% for for 9 months, 9% for 12 months" which is a very different deal. But still it's steep if you think about it. Let's say you take out a 12 month loan on this LOC. When you're repaying the loan in equal monthly instalments, the average balance over the 12 month period is half the loan amount. So if you paid a fee of 9% of the full loan amount, you're paying an 18% APR on the loan.

Re: amex (kabbage) line of credit

SouthJamaica — Mon, 14 Aug 2023 18:14:36 GMT

@jdsinm wrote:
Hello,

This if for what they call their business line of credit (which appears to be what kabbage used to offer/i have not ever had the kabbage loc). Applied 6/21 for this off a mailer. There was no “preapproved” amex language like there is on the mailers for credit cards. There was a $250 bonus if approved offer and with amex soft inquiry history, I thought why not as it would be good to have it in reserve biz credit.
It autofills almost everything if you’re an existing cardholder. You have to link your applicable checking accounts you want as to factor into the approval. They use a third party company that has you put in your user id/password to link. I will say the interface for the linking doesn’t seem to be able to distinguish if a checking account is a biz account or not and relies on you telling it that.
I reported 90K business income and linked two biz (legit biz accounts) checking accounts that showed better then that flow through the accounts.
Went into a review/we will let you know it may take up to 30 days.

Got an email from an amex/kabbage rep (email still had kabbage signature) saying they needed to talk to me. Phone tag for a few weeks with the holiday and finally talked to them today. They said the accounts needed to be “relinked” via the website for whatever reason. Once that happened the system would be able to process the app automatically, etc.

I went online found the two accounts showing up on the main web page looked accurate, but clicked through the “relink” button and preceded again. Approx. less then 60 second after doing that, I got a new message in the online systemand email that said I was approved.
Amount 25100 (don’t ask me about the 100).

Something to note, about 10 minutes later, I got a “inquiry” email from my various services that my Experian had been pulled for this. I read all the fine print on the mailer/letter and it doesn’t say this was a possibility and it didn’t say that as a possibility on any of the screens when applying (I screenshot them all, so I went back and read them again). I did some research on the forum and see some people have indeed gotten a hard inquiry for this too. I am not going to bother trying to fight he inquiry, because the result was worth it imo.

EDIT-UPDATE
Forgot to put that i qualified for the lowest fees/interest. Basically 3% for 6 months, 6% for for 9 months, 9% for 12 months. This makes it very decent vs current prime rate based borrowing.

I’ll update the post once I get a DP on if the $250 gets paid.

General info-
Single amex personal and single amex biz.
Personal is apprx 4.5 years old/ Biz is 1.5 years old
Limit on personal is approx. 23.5 and biz is very close to that.
Had a 0 balance on my amex personal and 0 balance on my biz card
They pulled experian personal with a cali address
No idea if they pulled bus credit
0 inquiry when pulled
Sole P not using an EIN
Score in the 720-730 range
5 year plus old business- 1.5 years of biz credit
18% overall credit card usage/ 14 accounts (personal)
25% overall credit card useage/ 4 accounts (business)
1 outstanding loans/revolving credit (no auto or home)
Personal Income in solid 6 digit area
Credit age 14 years

The fees you were quoted aren't the lowest. According to the site, the 12 month loans start at 6%, not 9%.

Re: amex (kabbage) line of credit

SouthJamaica — Mon, 14 Aug 2023 18:19:15 GMT

@SouthJamaica wrote:
Update:

I was approved for a very low, $2k, limit.
The fee for a 6 month loan, repayable in 6 monthly instalments, is 18%, tantamount to 36% APR, with most of the interest paid during the 1st 2 months. I'm guessing they use the "fee" model rather than "interest" model in order to evade the usury laws.
I.e., this is a useless addition to my business credit. I will never use it.
The good news is that (a) I'm picking up $250 for having wasted my time, and (b) I don't have to tell my bookkeepers about it since I'm not going to use it
I would not recommend this product.

@jdsinm reports getting a fee of "3% for 6 months, 6% for for 9 months, 9% for 12 months" which is a very different deal. But still it's steep if you think about it. Let's say you take out a 12 month loan on this LOC. When you're repaying the loan in equal monthly instalments, the average balance over the 12 month period is half the loan amount. So if you paid a fee of 9% of the full loan amount, you're paying an 18% APR on the loan.

Correction to above. The fee for the 6 month loan wasn't 18%, it was 9% of the original loan amount, which translated to 18% of the average balance. Annualize that and you get 36%.