The number one issue of people who want to sustain their business is working capital. Loan sharks are not a solution, nor are banks. The complexities of running a business are wide and varied.
And all loans are based on your credibility; this is when Kabbage can be helpful. It’s the instant loan provider that can help you get money as often as every day! So how does it work?
Most businesses fail within the first 2 years, and sometimes if the product or service is very good, and there seems to be a great future ahead for the business, the low return on investment and cash flow makes it difficult for business owners to sustain it just long enough, and applying for a loan in such a situation not only possess to be cumbersome but is all dependent on your credits, something that is weak anyway. This is what Kabbage focuses on; providing cash flow based on a variety of business data, not just credit score.
You have to simply sign up for free on their website, link your account to your business account. After you’ve signed up, Kabbage approves your business as eligible for a loan and also informs you of the loan limit. The range can be anywhere from USD 2000 to 100,000, depending on the business, and its scope.
You have to select the amount you want from the range, money can be taken as often as every 24 hours. As soon as you apply the money is transferred into your PayPal or Business checking account. Funds can be also taken from their app which is available for both Android and iOS, making it an even more practical venture.
The question is when there’s no fee, what is the payment plan? Kabbage provides a minimum 6-month plan, wherein the first two months you may have to pay 1-12% of the amount withdrawn and 1% for the remaining 4 months. The last four months’ payment can be made together in the 3rd month too.
The money that is borrowed can be used by the business person however they like; for example, procurement of inventory, hiring staff, marketing, etc. You have to be very wise when doing this, as on this basis will you be eligible for a bigger loan the next time or even be removed from the Kabbage plan.
There are some tricky bits here, basically, if their business fails to thrive, they have no other way to pay up, apart from digging into more loans elsewhere. You have to really believe in your business, and make sure you are doing well, while all start off with the intention to succeed, not all make it.
And so in the big picture, the customer of Kabbage is already a vulnerable candidate. Another interesting aspect of this service is that; money can be drawn several times a month depending on the limit you are provided with, and chances are that you may not remember how much of the limit you have covered.
It’s like having a bag of chips and just eating because it’s in front of you, you don’t realize how much of it is over till you peep into it. Similarly, you may not realize that while your intention was to only use 5000 of your 10000 limits, you ended up taking 8000, and now have to pay a big percentage on that 8000.
You would have to be very organized and calculative, as your eligibility for the next loan depends on how well your business has done, as they don’t focus on credit score, the functioning of the business, the flow of cash all has to be stable.
Kabbage is a unique service for passionate people with innovative ideas, who are organized and understand money responsibility well. Practical features make this Kabbage a very user-friendly and dynamic service, presently it is available for users in the USA and UK only.
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