• Subscribe
  • Contact Us
  • About LendIt Fintech News
  • Home
  • Menu Item
  • Menu Item
  • Menu Item
  • Menu Item

Lend Academy

LendIt Fintech News: Daily Coverage of Fintech & Online Lending


  • Editorial
  • Daily News
  • Podcast
  • Investor Forum
  • Events

Kabbage Offering Extremely Short Duration Loans from Three to Forty-Five Days

The new loan program aims to help Kabbage Payments customers better manage cash flow.

February 5, 2020 By Ryan Lichtenwald 1 Comment

Views: 366

Kabbage is one of the leaders in small business lending and recently announced custom loans for their Kabbage Payments customers. By way of background Kabbage Payments allows for businesses to invoice customers, accept card payments and manage customer and item information

When we think of short term loans in small business lending we often think 6, 12 or 18 month terms, but the new loan program will offer loans as short as 3 days and up to 45 days. It aims to solve for the cash flow challenges many small businesses face.

Borrowers will have the ability pay the loan back when the loan matures or as an alternative to allocate a percentage of Kabbage Payments revenue towards the balance over the term. If opting for the latter the borrower will pay any remaining balance at the end of the term. These custom loans have a one time fee starting as low as 0.1%.

CEO Rob Frohwein provided this statement in the press release:

We’re changing the dynamics of cash flow for small businesses by integrating solutions that help them quickly settle payments and access flexible funding to better manage their businesses.

It is amazing today the number of options that small businesses have for financing. It would have been hard to imagine a decade ago that a small business could get a loan for such a short duration and that it would be financially feasible for a small business lender to provide these loans. With this new product the main alternative for a small business lender is a credit card.

Filed Under: Fintech Tagged With: Kabbage Payments, lending, Loan, short term, small business

Views: 366

Trackbacks

  1. Kabbage Launches Kabbage Insights to Further Help Small Businesses with Cash Flow - Lend Academy says:
    March 4, 2020 at 12:10 pm

    […] continues to look into how they can serve small businesses in new ways. We recently shared Kabbage’s announcement of extremely short loans from three to forty-five days.  This offering was part of the launch of Kabbage Payments, which further integrates Kabbage’s […]

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Investor Intelligence

Peter Renton's Returns

Investor Forum

Lending Club Review

Prosper Review

Investor Resources

Most Popular Editorials

The Pure Marketplace Lending Model is Dead, the Hybrid Takes its Place

The 2018 Lending Club and Prosper Tax Guide

My Returns at Lending Club and Prosper

Map of Available States for Lending Club and Prosper Investors

Banks and Marketplace Lending Platforms: Ideal Partners?

Subscribe to the Podcast

Subscribe to the Lend Academy Podcast on iTunes
Subscribe to the Lend Academy Podcast
List of Podcast Episodes

Archives

Follow @LendAcademy Follow @LendIt

ABOUT LENDIT FINTECH NEWS

LendIt Fintech News, Powered by Lend Academy, has been bringing you all the news and information about fintech and online lending since 2010 when it was founded by Peter Renton. We not only have the industry’s most active news site, but also the largest investor forum and the first and most popular podcast.

We are a team of fintech enthusiasts who have been covering the industry for many years. With a deep knowledge of online lending, digital banking, blockchain, artificial intelligence and more our team covers the daily news and writes in-depth editorials.

Recent Editorials

  • Top 10 Fintech News Stories for the Week Ending January 16, 2021
  • Podcast 281: Sean De Clercq of Kickfurther
  • Upgrade Launches a Rewards Checking Account
  • Affirm’s IPO Takes Off Like a Rocket Ship
  • Fintech Lenders and Banks Are Ready for PPP Round Two

Copyright © 2021 · Metro Pro Theme on Genesis Framework · WordPress · Log in