Kabbage Loans FAQ: What to do if you can"t Pay When you applied for your Kabbage business loan you had every intention of paying it back as specified. However, due to circumstances. You fell behind by a payment or more. While you wish your income and sales were higher, they are not, so you are unable to catch up with your loan payments to Kabbage.
What should you do to protect yourself, your business, your personal assets and your credit score?
Here are actions to take based on both Kabbage policies and the advice of other Kabbage loan users who had difficulty paying:
DO Contact Kabbage Account Management Professional Team
Keep in touch with your lender Kabbage.com and apprise them of your financial situation and explain why you cannot pay at this time.
Your lender wants to be repaid and will work with you and perhaps set up a payment schedule that works with your budget. It is also to your advantage to work this out at the early financial difficulty stages instead of waiting until it is too late and you are sued in court.
In fact, at Kabbage.com they have a full team dedicated to helping you work out your payment schedule. They are called Account Management Professionals and are dedicated to helping you get your loan and payments back on track.
This team understands that it is your responsibility to repay your loan in full, however, they are also aware that sometimes there are serious financial difficulties that arise to prevent your repayment on schedule. They may offer a host of solutions for those who qualify, which will provide forbearance and financial relief.
It is critical that if you find yourself unable to repay your kabbage loan before you end up in default communicate with them right away and continue to avoid the situation escalation.
You can call their toll-free number at 888-986-8263
Customer service email: support@kabbage.com
Don’t Send Partial Payments without a Payment Schedule
Don’t attempt to resolve the situation yourself by sending in payments less than the full amount to hoping that that will satisfy your loan agreement. Instead, contact the account management team at Kabbage to set up a formal repayment schedule. Otherwise, your temps by sending them partial payments will do nothing to prevent your account being closed and sent to collections.
Don’t Try and Hide by Closing Your Online Accounts
The worst thing you can do is try to hide both from the fact that you’re in serious financial difficulty and from your lender at Kabbage.com. Erroneously some people think that by simply closing down their PayPal, eBay or QuickBooks accounts makes them invisible. Not only is this untrue and dishonest. It is the worst mistake when it comes to loan defaults.
While you may be unaware of it, if you took a Kabbage business loan, you agreed to secure it with your personal collateral. This means that you accepted the loan terms which allow your lender to collect by seizing your personal property, such as bank accounts, real estate, and stock.
Kabbage Loan Default
Defaulting, not repaying your loan within the specified time, is a serious matter and could cause damage to your business and personal credit score plus negatively affect your ability to get business loans in the future.
Loan agreements are legal documents, and as such when you default you can indeed be sued for the principal amount, plus interest and damages, so it is unwise to not deal with the situation directly with your lender.
https://best4businesses.com/kabbage-loan-agreement-explained/
https://best4businesses.com/7-tips-better-small-business-cash-flow-management/
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