Small business online lender Kabbage closed a $200 million revolving credit facility to support its rapid growth providing US small businesses access to flexible, online funding.
Building upon the momentum of Kabbage’s record-setting $700 million securitization earlier this year, the new four-year credit facility provides the longest period of committed debt funding for the company.
This shows the market’s confidence in Kabbage and its automated underwriting technology to responsibly provide small businesses access to capital in minutes.
“This transaction further diversifies Kabbage’s committed sources of funding and prepares us to meet the escalating demand for capital access among small businesses. 2019 has proven to be a tide-shifting year as customers accessed more than $670 million from Kabbage in Q2 2019, well surpassing our previously set record last quarter.”
Kabbage Head of Capital Markets, Deepesh Jain
Kabbage provides small businesses access to lines of credit up to $250,000 by analyzing their real-time business data.
With over 2 million live data connections with its customers, the company provides small businesses access to capital in minutes. To-date, Kabbage has provided over 185,000 US small businesses access to over $7 billion in capital.
Online lending growth
Online lending platforms are becoming more popular for small businesses as they seek short-term funds to cover growth periods.
These platforms use alternate methods to gather financial data and business intelligence to make lending decisions.
This makes it easier for small business owners to qualify for capital to fuel growth when traditional banks often require hard assets such as real estate as collateral, albeit at higher interest rates.
The continuing growth of Kabbage shows many small business owners seek short-term funding because of the easy access to money.
When used responsibly, the funding can be a lifesaver for SMBs going into a busy season as it allows the business to stock up on inventory.