Kabbage announces USD270 million credit facility
Kabbage, a company offering loans up to USD100000 to small enterprises since 2012, has taken in more resources to widen its credit facility. This was according to a report from Venture Beat adding that the company can now offer more companies with loans.
Today, Kabbage said that it has inked a deal valued USD270 million worth of credit facility. The move would make it easier for the company to lend funds to other small firms. Kabbage said that the credit facility it has raised is the biggest so far for a small scale financing business in the industry.
In 2012, Kabbage has won Venture Beat’s CloudBeat startup contest. The company said it has already increased its credit facility to USD250 million in the last three years. Last year, the company has also taken in a credit facility deal valued USD75 million.
Kabbage has been using gathered data regarding possible clients to predict the growth of their businesses in the future. The data would then be used to determine how much loan would be approved for the prospected client. According to Venture Beat, clients are required to return 1/6 of the loan on a monthly basis with 1 to 12 percent interest for the first two months and 1 percent for the succeeding months until fully paid.