Kabbage closes on $270M credit facility
Kabbage has closed a $270 million credit facility from Guggenheim Securities. Based in Atlanta, Georgia, Kabbage will be using the funds to build its financing business in the U.S. and beyond.
Kabbage opened for business nearly 3 years ago and advanced more than $250 million to small businesses. Around a year ago, Kabbage raised $75 million as part of a credit round. Kabbage has raised $53.7 million in VC funding in three rounds of funding.
This is the largest credit facility Kabbage has raised since starting in 2011.
Kabbage now makes around 6,000 merchant cash advances per month that ranges from $500 to $100,000. The interest rates range from 1.5% to 10% depending on the creditworthiness.
Kabbage determines a client’s creditworthiness with an online tool that evaluates sales, shipping, and data generated by dozens of business operations.
Kabbage helps funds a segment that generally has difficult getting loans from larger institutions because it is not large enough or lacks a credit history.
Kabbage has around 85 employees that are mostly in Atlanta and there is a small group in San Francisco.