Ok, this one is a tad bit complicated, so hang in there with us. Stripe and Kabbage are getting in bed together. Here’s why that’s interesting:
Kabbage provides loans to small businesses. They call it “working capital,” and the application process favors businesses that already have revenue streams in place.
Stripe allows developers and e-commerce startups to accept credit card payments. It aims to be the simplest payment solution out there.
Put it all together and whaddaya get? Small businesses that already have income coming in and are ready and able to take and repay a loan. Kaching!
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“The Kabbage integration with Stripe enables businesses that process payments online to apply for financing,” said Kabbage co-founder Marc Gorlin in an email to VentureBeat.
“Businesses that haven’t processed payments before, without incoming revenue, won’t be able to apply for financing.”
Between Kabbage underwriting and Stripe payment processing, the two companies hope to offer a “soup to nuts” financial product to get any kind of e-commerce business off the ground and expanding into new territories.
Atlanta-based Kabbage also works with partners like Intuit’s accounting software, QuickBooks, to streamline the application and underwriting process.
“Kabbage is using Stripe data in a truly creative way, looking at a seller’s business history and making an instant financing decision,” said Stripe cofounder John Collison in a statement on the news.
“There’s no manual work required by the seller: simply connect Kabbage to a Stripe account in seconds and receive the financing necessary to grow a business. It’s quite magical.”
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