Kabbage: An Automated Online Lending Platform for Small Businesses

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Kabbage: An Automated Online Lending Platform for Small Businesses

CIO VendorRob Frohwein, CEO
Working capital is indispensible for businesses to survive, whether in a startup phase, while experiencing a slow business cycle or in requirement to ensure positive cash f low. It helps meet immediate financial needs, like bridging gaps in cash f low, dealing with unexpected extra funding requirements and exploiting new business opportunities. Banks offer short-term loans as working capital but on the lines of credit, with a condition of paying interest only with principal payoff at a specified time in the future. Coming to the rescue is Atlanta Headquartered Kabbage Inc. that provides small businesses with the funding they need to grow, with just few clicks.

Kabbage is fast and simple way for small businesses to avail a maximum loan up to $100,000. “Customers can sign up for free in Kabbage and their information is undoubtedly kept safe and secure,” says Rob Frohwein, CEO of Kabbage. While banks require multipage documents, tax records and collateral to provide loans, Kabbage funds customers in no time by just linking their existing business accounts. The company not only looks into customer’s credit score but also their real time business data through its Data Context Engine. It connects to the data sources these businesses use every day such as e-retailers shipping, accounting, social media and others. After Kabbage processes data, customers will know how much they are qualified in bagging the loan. The customer at anytime can return to the dashboard, and link more business services to potentially qualify for an even larger funds. Kabbage not only reviews an applicant's qualification at the point of application, but also monitors each customer's financial health 24/7 mitigating risk and constantly delivering the right funding at the right time.

Kabbage, till now has funded over $1 billion to businesses helping them grow

Checking funds is also easy as the customer need to decide how much they need and Kabbage will deposit into their business checking or PayPal account. With Kabbage mobile app customers can easily use the funds directly from their phone. They can also access their capital and can draw against their line as often as once a day and need to pay only what they take.

Kabbage funds can be used to buy inventory, invest in equipments, higher staff or boosting marketing or anything else that business needs. Kabbage offers six and twelve month terms with simple monthly payments that a customer can pay early and safe to grow their business with ongoing access to their Kabbage funds. “The businesses have extra capital ready every time for anything they need to grow,” extols Frohwein.

“Kabbage, till now has funded over $1 billion to businesses helping them grow,” remarks Frohwein. In one instance a car service station, Real Auto Dynamics that specializes in aftermarket high performance upgrades, turbo work, engine boards got hit by Hurricane Sandy in 2012 and lost everything overnight. The service station tried applying for a small business loan through many banks, but ended up getting denied. Kabbage not only provided them with funds but also helped in gaining leverage against their competitors to keep up with the demands in the business.

Kabbage is currently focusing on providing funds to the Small and Medium-sized Business (SMB) sector. On the road ahead the company looks forward to continue helping lenders to reduce risk while making the lives of every customer dramatically easier by utilizing the power of data.