EXCLUSIVE—Online lender Kabbage has enlarged its small business line of credit, now offering clients lines up to $250,000, the company announced today.
Kabbage anticipates that businesses will use the funds for technology investment, the company stated in today’s release. Victoria Treyger, chief revenue officer for Kabbage, told Bank Innovation in an email:
Customers use Kabbage funding to grow their business, including marketing initiatives, hiring, purchasing equipment, location expansion, cash-flow management and strategic investments.
From the survey data in the release, we see more small businesses will invest in technologies in 2018 to stay competitive, reduce manual processes, protect their business data and improve their customer experience. Lines of credit from Kabbage now range from $2,000 to $250,000.
Companies will also look to invest in more mobile technologies and cybersecurity, according to Kabbage. To apply, businesses don’t need pre-approval from Kabbage, which evaluates applications based on the company’s business performance via “advanced analytics and data processing,” Treyger said.
The company’s expanded line of credit has no annual fees, Treyger told Bank Innovation, and businesses will only pay for the funds they take, so a customer with the full $250,000 line of credit that may only need $100,000 “will only pay for the funds they take, and not for access to the entire line of credit,” she said via email.
Businesses searching for the credit line can apply in a variety of ways — including through the company’s iOS and Android apps — and can also request a physical “Kabbage Card” for the line, Treyger said, adding:
With the Kabbage Card, customers can cover business costs at any point-of-sale checkout—whether online or in store—without having to wait for funds to transfer. That means, Kabbage gives businesses both cash and credit options to cover ALL their business needs from buying supplies at office-supply stores, to paying vendors directly.
The Kabbage card, carrying Visa branding, is issued by Republic Bank & Trust Company. Kabbage has received funding from Softbank and has a bank partnership with ING, as well as several other financial institutions.
To learn more about the latest developments in online lending and small businesses, join us on March 5-6, 2018 at the Parc 55 in San Francisco for Bank Innovation 2018. Click here to request an invitation.3 - Readers Like This Post