Kabbage, the small business finance company that launched in the UK this year, but have traded in the US for two years, have just closed a $75 million credit facility, their largest financing transaction to date.
The debt facility will fund advances for the company’s rapidly growing customer base and allow it to expand its reach to new customer segments and markets. Kabbage have already extended more than 60,000 loans and expect to advance over 100,000 in 2013 alone. Kabbage advances by volume have grown 298% on a year over year basis, while overall
loan volume to small businesses declined during the same time period according to the US Small Business Administration. That’s pretty much the same picture as in the UK.
Kabbage uses information from PayPal, eBay, Amazon, social networking sites, shopping carts, shipping, and accounting programs to understand a retailers business and assess risk. They say that they aim to redefine what it means to deliver funding to businesses making it even more simple, fast and user-friendly in the future.