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Kabbage Cash Advance for Airbnb


No terms, flat 3% free, pay as your earn, what’s the catch?

Has anyone used this financial product?


Here is my thread on my brief experience with it. I applied online and when it came time to link bank info it had trouble. Then someone emailed me. They said they would call and never did. So I didn’t find out as much as I wanted. I don’t actually need the money but if someone did it seems like worth looking into. I’d imagine the strings attached to what you do with the money might be offputting.


What do you mean flat 3%? flat 3% of what - for what?

Have you read their reviews -airbnb loans equate between 24 - 99% APR.

You’d be better off remortgaging your house.


I don’t think this is an Airbnb loan, it’s a different program by a company called Kabbage. It’s probably not available to overseas hosts. I initially got an invitation. Now there is a link on my dashboard.


I responded in-line:



it seems Kabbage have a number of products related to Airbnb hosts.

The one I saw on their website was called Kabbage host capital which wasn’t pay as you earn but 6 or 12 regular payments and an interest rate of the equivalent of APR of 24-99% which is high.

@Josiah said he saw one called kabbage cash advance - still not clear from him what the interest rate is on it

not sure what his reference to HEL or HELOC means?


I can’t be any more clearer on that interest rate. Kabbage seems to only charge a flat or fixed, interest fee of 3%. So if you borrow $3,000, they charge you 3% or $90. It’s basic arithmetic. I guess I just wanted to now if anyone knows if that’s it. That’s what I’m asking this silly forum.

Now that I see the loan calculator on their website, I suspect their fee is a fixed 3% monthly on the principal balance. But a host advance is different, apparently. I “agree to sell… a portion of [my] future Airbnb booking revenue at a discounted price. The discount – the difference between [my] advance amount and the total amount [I] transfer to Kabbage, Inc. from [my] Airbnb payouts – is the fixed cost of [my] host advance. There is no interest or finite term.”

Is it as straight as this, $100 payout: Kabbage keeps 49%, and I get 51%, or $49 and $51, respectively? Or are there some costs not made clear in their advertising?

I’m not seeing loan rates of 24-99%, but I do see costs ranging from 11-25% of the amount borrowed.

As for HEL and HELOC, I guess they’re banking terms some people might not get. A HEL, or home equity loan, is a loan a homeowner borrows against the existing equity in her home. A HELOC, or home equity line of credit, is similar, but a revolving line of credit the hometown can draw from at anytime, usually for a set term limit (i.e., 15 or 30 years). Usually banks only entertain these types of loan products if the min. amount being borrowed is $15,000 to $35,000. Anything less wouldn’t really be worth the time or money. I’m sure one of you will argue that, but that’s how I understand them to be.


If you find this forum so ‘silly’ why come here and ask?

I am sure you can find another forum that better suits your personality.

It’s a shame you are so rude about a forum that has given you help and support in the past when you encountered problems whilst hosting.


Maybe because he was getting silly answers, some of them NOT related to the question.


I’ll see what happens. Live and learn.


Ftlog, what silly answers are you referring to? You can’t talk about an interest rate without a time period. Usually, interest rates are quoted per year, where annualization is typically done in the most confusing way possible, in order to hide the real cost of borrowing. So if you pay 3%, it is important to look at the time frame over which you pay 3%. Say you pay 3% per month, this could be quoted as an APR of 36% (3% x 12), while the true cost of borrowing is more like 43% [which is (1+0.03)^12-1] per year. And before I am being called silly, ‘^’ means ‘to the power of’. Just because you don’t understand an answer doesn’t make it silly. The difference, btw, is due to compound interest, that is interest on interest. So before you take on any loan, maybe try to learn the basics of compounding. If you pay a 3% fixed cost/discount (or whatever other terminology they might feed you) for a 1-week loan, your true cost of borrowing would be more like (1+0.03)^52 - 1 = 365% per year.

You can always calculate a corresponding annual interest rate - even if you might have to make some assumptions on the term of the loan, i.e. how long it will take you to pay it back.

HEL, or HELOC are North American (US?) terms and are basically a second (or third) mortgage on your home. They tend to have lower rates than ‘pay-day’ loans but you can lose your house if you don’t pay them back on time. Since this is international forum, using less specific terminology might help. Although I might just have contradicted myself by using the term pay-day loan… Guess this forum is silly, after all.


You are very kind. When I see someone dismiss the value of the forum, particularly if they usually take rather than give, I just make a mental note to stop answering their posts.


Just to clarify:

It was @Josiah and @NordlingHouse who called the responses to Josiah’s post ‘silly’.

@Kingi actually queried why the responses were being called silly and agreed with the earlier responses which mentioned both interest rates and time periods for repayments as being key.

I agree with you I tend to stop answering posts from those who dismiss value from the forum or who ask questions and then are rude to those who respond because they don’t like the answers.


You mess with basic financial principles, you mess with me :wink:!


We looked into Kabbage (Host Capital), and went through the initial process. However, on a $3k loan, we would be paying back $3450 over 6 months through our AirBnB earnings. If you do the math, that is 15% over 6 months or a 30% APR. If the money is desperately needed, it might be a route to go through; for us, it was cheaper to charge it and pay it back over the same time frame, also from earnings. For the future, we set aside a percentage of our monthly earnings for repairs and upgrades, so we can handle minor and semi-major issues out of the earnings.


I’ve uset Kabbage cash advance and they had a 3% flat fee for up $2500, tried it and all went smoothly. They took 49% of all revenue until repaid. No interest or anything complicated. Wish they offered larger sums, not many projects one can tackle with only $2500


Thus far that’s exactly the terms we seem to have. We were fortunate (I guess) to be able to borrow more than $2500, and we used it to pay down some credit card debt. A one-time 3% fee is far less expensive than monthly 12.99%+ CC interest. It almost seemed a little too good to be true. Two months into it and it’s already 10% paid off, which more than I can say for my CC debt :frowning:


How is there such vastly different results? 30% vs 3%? At 3% I’d be interested.


I would be interested as well, because that was not our terms. What is the total amount Kabbage is collecting - just the loan plus 3%, or are the final terms more than what was loaned? At the end of our loan, we would have paid $450 more than we borrowed. So I would be interested in the final amount paid back. If just what was borrowed, that would be a good deal.


What a scam, Air should not dirty itself with this sorta thing.


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