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If you own a storm restoration company you know what it’s like to be stuck in cash flow limbo. Utilities often make you wait 90 to 120 days to get paid. And this is after you’ve exhausted all your working capital to get your crews to a distant location and keep them working there for a week or more.

If you are to stay in business and be ready to respond to the next natural disaster, you need money and you need it now. Kabbage offers lines of credit to companies experiencing cash flow and other issues.

But are they the best choice for a storm restoration company? Or would you be better off using Payost Invoice Financing instead? Let’s find out.

What is Kabbage?

Kabbage has been around since 2009. They provide lines of credit that are designed to enable eligible companies to get through tough spots in the business road. Kabbage prides itself on offering fast approval and fast access to the funds you need.

But that convenience comes at a price. Typically you’re going to be charged a 10% interest rate per month for the duration of your repayment period. Interest like that really adds up fast so you need to ask yourself ahead of time if this is the best choice for your business.

Source: https://www.kabbage.com/

How Does Kabbage Work?

Kabbage works by providing a short term line of credit worth up to $250,000. To their credit, Kabbage is one of the few short-term funding companies that allow you to make monthly, rather than daily or weekly, payments on the money you borrow.

However, monthly payments on all but the 18-month line of credit are typically front loaded with enormous amounts of interest. So you need to be absolutely sure you’ll be able to handle them before signing on the dotted line.

If you’re concerned about getting in over your head with this type of short-term loan, consider Payost Invoice Financing instead. With Payost, approval is just as fast as Kabbage and there are no credit checks and no monthly payments because we don’t issue business loans. We pay off your invoices.


Source: https://www.kabbage.com/

Our Quick Kabbage Review

Any review of Kabbage begins and ends with their lines of credit. So let’s take a quick look at how Kabbage works.

What Kabbage Provides

Kabbage provides short-term lines of credit in the $1,000 to $250,000 range. These loans are available in 6, 12 or 18-month repayment terms. The Kabbage interest rate for these loan products can be anywhere from 1.25% to 10% depending on your credit score and where you are in the repayment process.

In order to qualify for different lines of credit you will need to meet the following Kabbage loan requirements:

  • For less than $100,000, your company must have annual revenue of $50,000. You must have a personal credit score of 550 or greater and you must be in business for a minimum of 1 year.
  • For a credit line of more than $100,000, your company must have an annual revenue of more than $1 million. You must also have a personal credit score of 680 or greater and you must be in business for at least 3 years.

Keep in mind that Kabbage does not extend lines of credit to non-profits, companies with large outstanding debts or companies in the marijuana, gambling, firearms, lending or financial services industries.

Source: https://www.kabbage.com/

Other Factors to Consider

Before you commit yourself and/or your company to repaying a Kabbage line of credit, there are a few more things you will need to keep in mind:

  • If your average company bank balance is not at least $2,500, Kabbage will not extend a line of credit.
  • If a business owner has declared personal bankruptcy prior, at least 1 year must have passed since discharge.
  • Kabbage isn’t interested in the company credit score, only the owner’s credit score.
  • Kabbage collects monthly payments via automatic deductions.
  • Funding a Kabbage loan will take anywhere from 1 day to 7 business days.

During the application process Kabbage will do a hard credit pull on the applicant. A hard credit pull is a formal inquiry where they check your credit score to determine your creditworthiness. This type of hard pull will likely result in a slight decrease in your credit score. That’s one more reason you should think long and hard before choosing Kabbage.

Source: https://www.kabbage.com/

Kabbage vs PayOst Comparison

As we’ve just seen, Kabbage is in the business of providing short-term lines of credit for companies that meet their requirements. Let’s review the pros and cons of Kabbage.


  • Fast approval.
  • Up to $250,000 line of credit available.
  • Monthly repayment option.


  • Loan payments are front-loaded with interest.
  • Business owners need to have good personal credit.
  • They do a hard pull that could damage your credit score.

Payost on the other hand isn’t in the loan business. What we do is pay off outstanding invoices you have with utilities or other AAA credit rated companies. Our model is ultra-simple and based on the credit of the invoice holder (the utility) and not the invoice issuer (you). Let’s look at the pros and cons of Payost.


  • Simple application process.
  • No credit pull to damage your credit rating.
  • Fast approval and payment of your invoices.
  • No monthly payments.


  • Not available if you don’t have qualifying invoices.

Keep in mind that because Payost doesn’t purchase your invoices like an invoice factoring company does. The utility company is never aware that you came to Payost for invoice financing assistance. This helps your company retain its outstanding reputation.

In addition, unlike a bank that will demand collateral before issuing a bridge loan, Payost requires no collateral. In fact, we need nothing except a copy of your outstanding invoices being held by the utility. That’s it.

Bottom Line: Should You Try Payost?

While Kabbage has no doubt helped numerous companies navigate through difficult business waters, their assistance is based on what we consider to be an outdated and even punitive model that puts the onus on you, the borrower.

The Payost Invoice Financing model, by contrast, is dependent on the creditworthiness of the utility you performed work for. If they’re creditworthy, we finance your outstanding invoices the fast and easy way. Here’s all there is to it:

  • You do work for a AAA credit rated utility.
  • Your work is signed off by the utility.
  • Visit the Payost website and apply for invoice financing. It only takes about 3 minutes.
  • We verify your invoices and provide you an online dashboard to upload them.
  • We pay your invoices, typically within 24 hours.
  • You get the money you need to pay subcontractors, conduct equipment maintenance and prepare for the next job.
  • When the utility pays your invoice, you reimburse Payost plus a modest fee for our service.

If you’re tired of waiting for utilities to get around to paying your outstanding invoices. Or if you want to avoid having to commit to huge monthly payments for a business line of credit, the choice is obvious.

Moreover, if you want to avoid your credit rating and reputation taking a hit just because you needed some working capital, then Payost is the solution you’re looking for. Go to our “Apply Now” page and get started toward a sustainable, debt-free future!

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