The small business lender is eyeing up bigger fish in the sea.
After previously securing a $200m asset-backed revolving credit facility from Credit Suisse in 2017, Kabbage has announced it will be offering lines of credit of up to $250k in an effort to attract larger businesses.
The expanded product will provide large businesses with greater purchasing power for longer-term investments, and is the largest credit line available from any online lender yet.
A recent survey of 800 small businesses conducted by the platform showed that more than 73 per cent of businesses expect to increase their revenue by more than 20 per cent in 2018. The credit line expansion is expected to support both existing and new larger Kabbage customers with the funding needed to make these investments.
Giving small businesses the peace of mind and security to focus less on their finances and more on their passions is a key tenet at Kabbage,” said COO Bob Sharpe.
“Increasing our lines of credit to $250,000 significantly enhances our ability to solve financial hurdles for larger and more specialized businesses that may otherwise be unachievable, which we’ve seen in the market already.”
According to the survey, over half of respondents intend to invest in mobile technologies, such as apps or text automation, and technologies that reduce manual processes and paperwork in 2018.
As always, there will be no additional fees to hold a higher line of credit with Kabbage, as well as no annual withdrawal requirements, origination costs or hidden fees. Any funding from Kabbage also comes with a Visa-backed card for use at any point-of-sale checkout, and the Kabbage mobile app for on-the-go access.
Kabbage is both a lender and licencing business, making its origination and underwriting technology available to financial institutions around the world. In October last year, the company announced the extension of its partnership with Dutch bank ING, bringing the Kabbage-powered online lending proposition to France and Italy.
The platform’s total debt funding capacity currently stands at $750m, after an additional $250m investment made by SoftBank in August.