Kabbage understands online sellers. We review your selling history and your credit history. Get ... More
Kabbage understands online sellers. We review your selling history and your credit history. Get rewarded for your hard work!
Last updated 12 Sep 2011
Published 12 Sep 2011
With the banks moving further away from the more personalized method of considering loan applications and relying on the number crunching robotics of credit scoring, no wonder it’s hard to get some working capital for your business. If your business involves technology in the sales process as well then you probably stand even less chance.
Kabbage.com is leading the way for businesses selling on-line to obtain working capital advances to help them grow. If your business sells through eBay, Amazon or Yahoo then you could be minutes away from a really welcome cash injection.
As with any loan the usual credit checks will be necessary however the real driver behind whether you get the cash or not is the information within your eBay, Amazon or Yahoo account. If you’ve been trading for a year or more then Kabbage can analyze this data and see exactly how much you’re eligible for.
The application process is simple and you will need to provide the relevant seller ID for whichever marketplace you deal in. With access to this information Kabbage will look at specifics like your monthly volumes and also be able to see the activity on your PayPal account and track things like charge backs. Information like how you rank with your customers will also make up part of the underwriting process which, according to the website, can take as little as 30 seconds!
Loans can be for a maximum of six months and customers can have more than one running at a time. Typical loan sizes range from $2,000 to $12,000 but amounts much higher or lower than these are possible. Rates vary from 3% - 7% for 30 days to 10% - 18% for six months.
Kabbage itself is funded with a mixture of bank finance and some serious venture backing including the UPS Strategic Enterprise Fund. With a logistics company on board it’s likely that customer shipping data will provide an additional source of available underwriting information in the future.
It’s refreshing to know that new avenues are opening up for on-line businesses to gain working capital. The days of pleading with the banker who probably doesn’t understand your business anyway could be numbered.
With great use of technology to understand the very technology of on-line selling, Kabbage is a very welcome addition to the business funding arena.