Kabbage, a company that offers loans to small businesses, now has even more funds of its own to work with.
The company announced today that it has closed a $270 million credit facility, which should make it cheaper and easier for Kabbage to loan out money to other small businesses. The company claims its one of the largest credit facilities raised in the small business financing space.
Kabbage, which won our CloudBeat startup competition in 2012, offers up to $100,000 loans to small businesses with an easy sign-up process and follow-up support. The company says it has advanced more than $250 million to small businesses over the past three years. Kabbage also raised a $75 million credit facility last year.
Using data it gathers about potential customers, Kabbage can predict the future growth of businesses, information which ultimately determines the size of the loan. Customers have to repay the loans within six months(1/6 of the loan every months). Kabbage charges 1 percent to 12 percent of the loan for the first two months, and 1 percent for each remaining month.
Atlanta, Georgia-based Kabbage has received more than $53 million in venture funding from Thmvest Ventures, Mohr Davidow Ventures, BlueRun Ventures, and others.
Startups and small companies, listen up: Kabbage has $270M more to lend you
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