B2B Payments

Kabbage To White-Label Its Lending Service

Small-business lender, Kabbage, will soon be white-labeling its service to a large financial services company. The online lender recently secured a $270 million credit line from Guggenheim Securities, the investment arm of Guggenheim Partners. 

Kabbage and other online lenders target the lengthy list of merchants that are looking for relatively small loans. Kabbage, CEO, Rob Frohwein, explains this methodology, “mainstream lenders cannot economically acquire these customers. I think that banks like the space, but they have a lot of regulatory and risk debit right now that makes it hard for them to either re-enter or meaningful enter these markets," reports TechCrunch,

Bank lending to small businesses increased in March for both credit unions and community banks, while loans from big banks decreased slightly. Rates from alternative or online lenders also fell month over month in March. For Kabbage, this is hopefully a sign of things to come and the customer base will expand past the 25,000 existing customers. Frohwein estimates that 15-20 million online business are currently in need of capital and the company is “excited about the fact that we’re able to identify good customers on the front end and manage them on the back end”.

“What’s Hot” is aggregated content. PYMNTS.com claims no responsibility for the accuracy of the content published by the original source.

——————————

NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

Click to comment

TRENDING RIGHT NOW