AmEx’s Kabbage Debuts Small Business Lines of Credit

The online lender Kabbage has launched a service offering small businesses lines of credit, backed by its owner, American Express. 

Unveiled Wednesday (Dec. 8), Kabbage Funding offers credit lines of $1,000 to $150,000, designed to help small businesses manage their cash flow. 

“Most small business owners start a company to pursue a passion, not to spend time managing their cash flow and balancing their books,” Kabbage co-founder Rob Frohwein said in a Wednesday (Dec. 8) news release. “Our suite of digital cash flow solutions is designed to give small business owners back time in their day, and Kabbage Funding offers convenient funding whenever they need it.” 

Read more: American Express Acquisition Kabbage Rolls Out Checking For Small Businesses 

Kabbage Funding follows the companies previous offers, including Kabbage Checking, which was launched in June. 

In the summer of 2020, Kabbage launched its first checking accounts, designed to help small businesses access banking services such as electronic wallets and bill pay. 

The company says all of its tools, when connected, are designed to help small businesses borrow funds, make deposits and pay vendors from one provider. 

According to Kabbage, the program is open to U.S. small businesses who have been in operation for at least a year. Once approved, businesses do not need to reapply to access lines of credit, or seek approvals to withdraw funds. Customers can choose loan terms of six, 12 or 18 months, and can take out more than one loan at a time. 

Read more: House Committee Asks Kabbage, BlueVine For Pandemic Loan Security, Revenue Data 

In May, Kabbage was among the lenders called on by the House Select Subcommittee on the Coronavirus to document their fraud control and compliance systems, along with the revenues they earned from PPP loans.  

This request was not an immediate indication of wrongdoing. The probe is ongoing. Kabbage was one of the largest lenders in the program, giving out $7 billion in 2020. Lenders have said they felt pressured to make loans quickly while still adhering to ever-changing regulations.