Kabbage, a company that offers loans to small businesses, now has even more funds 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 this is 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 in 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 that ultimately determines the size of the loan. Customers have to repay the loans within six months (1/6 of the loan every month). Kabbage charges 1 percent to 12 percent of the loan for the first two months and 1 percent for each remaining month.
The Atlanta, Georgia-based company has previously received more than $53 million in venture funding from Thomvest Ventures, Mohr Davidow Ventures, BlueRun Ventures, and others.