Kabbage loans

[MDAVEY8478]

What is the name of your state (only U.S. law)? California

Good Morning

Just curious if anyone has dealt with Kabbage as far as default or payment plans. I owe 78k to them and have been borrowing and paying back very timely. However we lost some of our larger customers and we will not be able to afford 14k (yes 14k) per month in payment to them. I've heard they are very aggressive with collections. I can afford to send them 3k per month until it's paid however with all I've read online looks like they don't negotiate for less and add 100 dollars per day in late fees ongoing so that would never get paid off. Any suggestions would be awesome.

Thanks

 

[adjusterjack]

I'm sure that there are lots of people in the same boat, people who cheerfully borrowed money believing that only sunny days were ahead, like all the people who kept refinancing their homes last decade and got slammed when the real estate market crashed.

You have the option of default, wait until you are sued and argue that the $100 per day late charge is unenforceable. You will, of course, pay a lawyer a lot more than $100 per day to handle it for you.

You might want to consider bankruptcy as an alternative.

 

[quincy]

What is the name of your state (only U.S. law)? California

Good Morning

Just curious if anyone has dealt with Kabbage as far as default or payment plans. I owe 78k to them and have been borrowing and paying back very timely. However we lost some of our larger customers and we will not be able to afford 14k (yes 14k) per month in payment to them. I've heard they are very aggressive with collections. I can afford to send them 3k per month until it's paid however with all I've read online looks like they don't negotiate for less and add 100 dollars per day in late fees ongoing so that would never get paid off. Any suggestions would be awesome.

Thanks

Thank you for starting your own thread, MDAVEY. Here is a link to the older thread, for reference purposes: https://forum.freeadvice.com/debt-collections-84/dealing-kabbage-621767.html

Kabbage loans can be a great way for small businesses that have been turned down for loans elsewhere to get fast cash for their businesses. A major problem with these lines of credit is that they have high annual percentage rates and many small businesses over-borrow. Many small businesses find that it is difficult to repay what they owe because their businesses just do not make enough to support the resulting monthly payments on the loans.

That said, Kabbage is upfront about qualifying for these loans, and Kabbage is upfront about their lines of credit loans and the interest rates and the terms of these loans. When a business defaults, Kabbage does not have to negotiate lower payments.

You could consult with an attorney if you think bankruptcy might be an option.

 

[MDAVEY8478]

Thanks, however I have no want to discharge the debt I just need a little more time to pay it. 24 months vs 12. I was just curious if anyone had heard or seen a workout plan with them. All I've found is they don't work it out they just sue which in turn I guess would force the CHP 7.

 

[quincy]

Thanks, however I have no want to discharge the debt I just need a little more time to pay it. 24 months vs 12. I was just curious if anyone had heard or seen a workout plan with them. All I've found is they don't work it out they just sue which in turn I guess would force the CHP 7.

I have heard that Kabbage has in the past worked out payment arrangements with those who have a long and reliable payment history with Kabbage and are just experiencing temporary financial problems with their business. They might not be so willing to assist a newer borrower but you can try to negotiate lower monthly payments. It won't hurt to see what they say.

Good luck.

 

[MDAVEY8478]

Yep that's what I will do. I've been with them for almost 2 years and have used and paid back 100's of thousands so hopefully they will work with me.

Thanks for the help

 

[quincy]

Yep that's what I will do. I've been with them for almost 2 years and have used and paid back 100's of thousands so hopefully they will work with me.

Thanks for the help

You're welcome, MDAVEY. Good luck.