Small business lender Kabbage had laid the foundations for another securitisation. The company has secured a $200m asset-backed revolving credit facility from Credit Suisse.
The senior tranches of the transaction have been rated A and BBB by DBRS, and are collateralised entirely with loans originated through Kabbage’s underwriting technology. The revolving facility will be issued by Kabbage Asset Funding 2017-A LLC. The company issued what it describes as the online small business lending’s sectors largest securitisation to date earlier this year – a $525m transaction.
Kabbage’s total debt funding capacity now stands at $750m. The new facility paves the way for its expansion into higher lines of credit with longer terms, which it says will allow it to serve more businesses – and bigger ones.
“The new, DBRS-rated facility, provided by Credit Suisse, speaks to Kabbage’s maturity in the financial markets and gives us diverse funding options to serve our small business customers,” said Kabbage Head of Capital Markets, Deepesh Jain. “To earn an investment-grade rating requires a rigorous evaluation of not only our lending models, automated risk analysis, and successful history of reducing bad debt to an industry-low, but also our operational processes – from exceptional customer service to unmatched technology development.”
Kabbage is both a lender and licencing business, making its origination and underwriting technology available to financial institutions around the world. Most recently, the company announced the extension of its partnership with Dutch bank ING, bringing the Kabbage-powered online lending proposition to France and Italy.
Kabbage is also backed by Japanese technology giant SoftBank, which invested $250m in the company in August.