Founded in 2009, headquartered in Atlanta, Georgia, with a marketing office in San Francisco, California, Kabbage is now the best choice for online small business loans. Read our review below to find out why.
Disruptive Online Finance Platform
In short, Kabbage provides working capital in the form of a cash advance to online merchants who list products for sale through online marketplaces, including eBay, Amazon, Etsy, Shopify, and the Yahoo! Store, etc.
Their success is based on their financial technology platform that is revolutionizing the way small businesses get capital to grow. Kabbage’s first U.S. patent (No. 7,983,951), ”Apparatus to Provide Liquid Funds in the Online Auction and Marketplace Environment”, was awarded on July 19, 2011, and the second one (No. 8,073,744), “Method to Provide Liquid Funds in the Online Auction and Market Place”, was issued in December 6, the same year by the United States Patent and Trademark Office (USPTO).
With the help of their patents, Kabbage analyzes a variety of metrics including the merchant’s selling history, customer ratings, income and credit history, UPS shipping data, and Social Media to give them a Kabbage Skore, then they can get an advance from Kabbage ranges between $500 and $50,000.
Once the seller is approved, funds are deposited directly into the seller’s Paypal account in less than 7 minutes, or seller’s business checking account (via ACH) in 3-5 business days.
The following is an official video, which helps you better understand their business and unique features.
Outstanding Management Team
Kabbage was established by current CEO Rob Frohwein, Chairman Marc Gorlin, and COO Kathryn Petralia, and is venture funded and backed by Mohr Davidow Ventures and BlueRun Ventures, with additional investors including: David Bonderman, founder of TPG Capital, Warren Stephens , CEO of Stephens Inc., the UPS Strategic Enterprise Fund, and TriplePoint Ventures.
We list some of their press releases below, which may help you understand their company and development:
- Kabbage Wins VentureBeat Award for Most Disruptive Cloud Technology Company
- Former President of PayPal Scott Thompson joins Kabbage Board of Directors
- Kabbage Raises $30 Million in Series C Funding
- Monsoon Commerce Partners with Kabbage to Offer Customers $20 Million in Working Capital
- Kabbage Named Red Herring Americas Top 100 Finalist
- Kabbage CEO, Rob Frohwein, has been named a Top 10 Innovator by Bank Technology News
- Victoria Treyger joins Kabbage as Chief Marketing Officer; Kabbage to open San Francisco office
- Kabbage Partnership Offers Working Capital to Doba Customers
- Kabbage and UPS Partnership Fuels Small Business Growth
- Sam Wheeler joins Kabbage as Vice President of Business Development
- Successful Holiday 2011 Online Sales Season Not Limited To Retail Giants, Reports Kabbage
- Kabbage Closes On $12 Million Venture Debt Facility From Western Technology Investment
- Kabbage Secures Second U.S. Patent For Its Online Merchant Finance Platform
- Kabbage Joins the Growing X commerce Global Ecosystem
- Kabbage Releases Social Klimbing
- Kabbage Issued First Patent
- Kabbage Secures $17 Million Series B Funding
- Kabbage Finalist for Microsoft BizSpark Accelerator SXSW
- Kabbage Secures $6.65 Million Series A Funding
How Much Does it Cost?
Now that you see it’s good for online retailers who need cash to grow their business, but what are Kabbage.com fees? It’s a simple 6 month advance, like the graph shows below.
Advances can be repaid within six months without a prepayment penalty. Your cost will be typically 2%-7% based on your store’s monthly revenue and Kabbage Skore, while the maximum is between 10% and 18% of the original balance. Sign up is FREE. You have no obligation to take money. Costs are incurred only when you take money.
Is Kabbage.com Safe?
Anybody considers this issue seriously for online business. With Kabbage, they utilize the highest level encryption and the information they request to determine your advance amount such as social security number, name, address, etc. is protected 24/7. Their site is certified by TRUSTe and VeriSign.
For login credentials, they never see, store, or have access to your passwords to your marketplaces or payment processors. They simply redirect you to their sites to login and confirm ownership of your accounts. So rest assured with them.
Now Kabbage has more 40,000 customers and 80% are repeat users. If you run an online store and need money to purchase inventory, advertise, hire help, upgrade your equipment, take a business class or attend a show, you should give them a try, because they can really give you a hand when you need it.