Currently I have both Paypal working capital and Kabbage. Paypal working captial is by far AMAZING! We had to find a solution and needed quick cash to take the jump of expanding our business from our home into a large warehouse with heavy equipment. We needed to first invest in the equipment; which we were able to but the thing that snagged us was we needed two months of security deposit in order to move into this warehouse.

We have been using paypal working capital for over a year. Which has been fantastic. We took out our 3rd paypal working capital around May for $8500 and the flat one time fee is $703 with a total repayment of $9,203. For paypal repayment is based on %15 taken off the top of each sale that goes through paypal. We have been able to pay off each paypal working capital within a timeframe of 5-6 months. This has been great for us because we used the money soley on beefing up our inventory which had a great ROI (return in investment).

For the time crunch we were in for moving into the warehouse... our only last resort for quick cash was Kabbage; which the process to get approved was 3 weeks for us. They required so much additional information. We finally got approved for $26,000 and just took out what we needed for the two months of security deposit for our warehouse move in. This was extremely risky because 1) there is no ROI and 2) since there was no ROI for what we needed for the funds... this resulted in having to come of with a large sum of money to pay back the first month; which was $1,200 first payment.

Not only that. The fee to take $5000 was insane!

Here is a comparison b/w paypal and kabbage working capital for us:

PAYPAL:

Loan - $8,500
One time fee - $703

Total repayment amount - $9,203

Repayment time frame - no set time. Repayment is based on extracting %10 - %20 of sales driven through paypal (which you can set the % amount taken from each sale)

So that means if you have a bad month of sales... then no worries. You will not be penalized. If you have a great month of sales... awesome the repayment of the working capital will be faster.

KABBAGE:

Loan - $8,500
One time fee - $1,785

Total repayment amount - $10,285

Repayment time frame:

1 month - $2,139.17

2 month - $2,139.17

3rd month - $1,501.67

4th month - $1,501.67

5th month - $1,501.67

6th month - $1,501.66

So, that means... if you have a bad sales month... you are screwed!

Overall... I would not recommend kabbage unless you are in desperate need and expect to have an ROI! Because honestly... it COST AN ARM AND LEG!