Best Business Accounts for Etsy: Wise, PayPal, Payoneer, Chase for Business, Bank of America. Learn more about their features and pricing here.
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.|
|Table of Contents|
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.
|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.|
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 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
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
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.
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|
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
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|
A Kabbage checking account is a great option for business owners looking for an account with minimal fees and a good APY.
But if your business also has a scope to go international, then a Wise Business account might just be what you’re looking for.
Pay employees and invoices in up to 80 countries using your WIse Business account, having your money exchanged at the mid-market rate, free of hidden fees.
Take control of your international cash flow and manage over 50+ currencies, all from your multi-currency account.
Access local account details, like Sort Codes, IBANs and Routing Numbers, making the receiving of international payments one step simpler.
On top of that save up to 19x compared to PayPal when sending or receiving international business transfers.
Opening a Wise Business account in the US is simple, without a subscription fee.
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
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
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
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
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 and BlueVine are two loan providers with a range of additional features.
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|
- Kabbage - Business checking pricing
- Kabbage - Features
- Kabbage - Features
- Kabbage - Checking account
- Kabbage - Documents to open a business account
- Kabbage - Funding loans
- Kabbage - Funding
- Kabbage - Apply for funding
- Kabbage - Checking Deposits
- Kabbage - Checking ATM
- Kabbage - Checking debit card
- Kabbage - Legal
- Kabbage - Funding security
- Apple.com - Kabbage
- Google Play - Kabbage
- Trustpilot - Kabbage
- BlueVine - FAQ
- BlueVine - Invoice factoring
- FDIC - Deposit Insurance
- Kabbage - Settlement Proceeds for your Payments
All sources checked 5 May 2022
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
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