Kabbage expands line of credit
US alternative lending start-up Kabbage is broadening its focus by expanding its line of credit to $250,000 to offer more purchasing power to larger businesses for longer term loans, reports Julie Muhn at Finovate (FinTech Futures’ sister company).
This credit increase will not only serve existing Kabbage clients looking to borrow more, but will also add to the company’s customer base to include larger businesses. In a recent survey of 800 small businesses, Kabbage found that more than 73% of businesses expect to increase their revenue by more than 20% this year. Among the top investments businesses plan to make are:
- Mobile technologies, such as apps, advertising or text automation for customer relationship management
- Technologies to reduce manual process and paperwork
- Social advertising
- Cybersecurity tools and software to protect company and customer data
Once they’re approved, businesses can draw on the $250,000 line of credit at any time, without having to reapply for each loan they take. Kabbage is not charging additional fees for the larger amount, has no annual withdrawal requirements, and no origination costs. Businesses can access the funds online, via the Kabbage mobile app, or on the Kabbage Card. This card allows users to withdrawal from their line of credit at any point-of-sale where Visa is accepted.
Last month, the company released 2017 growth figures, stating it has extended $4+ billion to more than 130,000 small businesses since it was founded in 2009. In November of 2017, Kabbage made headlines when it brought in a $200 million credit facility.