Can a small business utilize both Business Loan and smaller MCA loan (Kabbage)
at the same time legally? It is my understanding that they are two different types of financial product and do not conflict?
First off, Kabbage isn’t an MCA. An MCA really is a lender that uses your daily credit/debit card receivables to get financed. Kabbage offers a business line of credit based off of your personal credit report and your business history.
You can get more than 1 loan or type of financing at a time. Some even go well together like a term loan with equipment financing. The problem is that most lenders all want first rights to your business assets in the event you default. Both lenders can’t have this so you’ll find it difficult to qualify for two types of financing that are similar. The second one will often ask you to refinance your current loan amount. Good luck!