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Thread: Kabbage and Paypal

  1. #1
    Join Date
    Mar 2014
    Posts
    171

    Default Kabbage and Paypal

    If you're an eBay seller and you log into your seller dashboard, you'll likely see ads for a company called Kabbage that gives cash advances to sellers that accept Paypal. You borrow capital from them to buy inventory for your ebay or Amazon store and then pay them back in 6 monthly installments.

    For a successful seller that just needs cash to buy a lot of merchandise, sell it quickly and give Kabbage back the advance in a few weeks, this is a useful service ,though the fees are steep.

    But what if your eBay selling starts to decline and you don't have as many sales anymore? Then you're screwed.

    My eBay sales were decent in November and December, so I managed to make my first 2 payments on time. Then my sales dropped drastically after the holidays and now I'm having a hard time paying the advance on time, and they won't give me another 4 day extension. Did I mention that they use automatic payments and they decide whether to turn the autopayment off?

    Kabbage does not care if you tell them that you have $10 in your Paypal account, they will ignore your request for an extension of a few extra days and they will overdraw your bank account and put your Paypal account into a negative balance. If there's no money, they'll write themselves an echeck.

    After they have destroyed your accounts, they will start asking you for a check. A check from the checking account that they overdrew.

    I keep contacting them and trying to work with them to pay off my obligation and they keep repeating the same form email.

    I'm a single mother with a kid and a dog to support on my income alone, and Kabbage does not give a damn if they wreck all my accounts and we end up homeless.

    Unless you know that what you are selling is a goldmine and a highly desirable item that will sell immediately, don't borrow money from Kabbage to buy inventory.
    I regret that I ever heard of them and I just want to pay them back so they can stop raping my bank account.

  2. #2

    Default

    Thanks for letting us know, it is crazy what people have come to these days. I'm sure deep down in the terms and services they have covered their asses and this is fine. I can't really suggest anything you can do other than close your Paypal account and possibly Bank Account.

  3. #3
    Join Date
    Jan 2014
    Posts
    326

    Default

    I also thank you for that knowledge it's crazy to hear that story. Expecally because of how heartless that sounds. Waiting a few extra days wouldn't kill them. But hell I feel that it should be obvious they are working with paypal and ebay -.-

  4. #4
    Join Date
    Jan 2014
    Posts
    313

    Default

    Thanks for the info! Unfortunately thats just the way they function and make money off honest people! I hope they go bankrupt!

  5. #5
    Join Date
    Feb 2014
    Posts
    163

    Default

    Quote Originally Posted by ACSAPA View Post
    If you're an eBay seller and you log into your seller dashboard, you'll likely see ads for a company called Kabbage that gives cash advances to sellers that accept Paypal. You borrow capital from them to buy inventory for your ebay or Amazon store and then pay them back in 6 monthly installments.

    For a successful seller that just needs cash to buy a lot of merchandise, sell it quickly and give Kabbage back the advance in a few weeks, this is a useful service ,though the fees are steep.

    But what if your eBay selling starts to decline and you don't have as many sales anymore? Then you're screwed.

    My eBay sales were decent in November and December, so I managed to make my first 2 payments on time. Then my sales dropped drastically after the holidays and now I'm having a hard time paying the advance on time, and they won't give me another 4 day extension. Did I mention that they use automatic payments and they decide whether to turn the autopayment off?

    Kabbage does not care if you tell them that you have $10 in your Paypal account, they will ignore your request for an extension of a few extra days and they will overdraw your bank account and put your Paypal account into a negative balance. If there's no money, they'll write themselves an echeck.

    After they have destroyed your accounts, they will start asking you for a check. A check from the checking account that they overdrew.

    I keep contacting them and trying to work with them to pay off my obligation and they keep repeating the same form email.

    I'm a single mother with a kid and a dog to support on my income alone, and Kabbage does not give a damn if they wreck all my accounts and we end up homeless.

    Unless you know that what you are selling is a goldmine and a highly desirable item that will sell immediately, don't borrow money from Kabbage to buy inventory.
    I regret that I ever heard of them and I just want to pay them back so they can stop raping my bank account.

    That website looks pretty decent actually I may have to take a look at them and see how it runs.

  6. #6
    Join Date
    Feb 2014
    Posts
    22

    Default

    Hmmm, I have never heard of the company. From your review, I sure don't like the sound of them!

  7. #7
    Join Date
    Feb 2014
    Posts
    13

    Default

    wow that's crazy. I have never heard of that company before. I'm actually using ebay to sell something right now, so thanks for the heads up.

  8. #8
    Join Date
    Mar 2014
    Posts
    171

    Default

    Quote Originally Posted by Tersuss View Post
    That website looks pretty decent actually I may have to take a look at them and see how it runs.
    It's a decent website, if you are having great sales and just need a cash advance to buy more inventory. But if you have a couple of bad months where your items don't sell well, you will see the ugly side of them as they start overdrawing your bank account and taking money automatically out of your Paypal account.

    They charge a lot of interest and fees too.

    If you are successful and your eBay sales are great, you should get along with them fine. It's when your sales start to drop that you realize how scary they are. People have compared them to the devil.

  9. #9
    Join Date
    Jan 2014
    Posts
    22

    Default

    You always have to keep in mind that your business may not go as planned, and be prepared for failure. Never invest in something that will make you lose out if your business fails, or else it can ruin you. The loan sharks don't care that your business didn't go as planned, you took their money and they expect you to pay them back more than they gave you. That's their business. It's a somewhat unethical one, but a completely legal one.

  10. #10
    Join Date
    Mar 2014
    Posts
    126

    Default

    Thanks for sharing this horror story with us. I hope you clear your debts soon. What were you selling through e-bay? I have never heard of this Kabbage before. It looks like they have shitty business policy. Who in their right mind will draw a check on an account that they themselves overdrew. It looks like they deliberately want to break OP.

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