Kabbage: Additional $200 Million Revolving Credit Facility To Further Support Small U.S. Businesses

By Dan Anderson ● July 8, 2019
  • Kabbage, a data and technology company offering automated cash flow solutions for small businesses, has closed a $200 million revolving credit facility

Kabbage — a data and technology company offering automated cash flow solutions for small businesses — has closed a $200 million revolving credit facility to support its rapid growth providing U.S. small businesses access to flexible and online funding.

And this builds upon the momentum of Kabbage’s record-setting $700 million securitization earlier this year. The new four-year $200 million credit facility provides the longest period of committed debt funding for the company.

This credit facility demonstrates the market’s confidence in Kabbage and its automated underwriting technology to responsibly provide small businesses access to capital in mere minutes.

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“This transaction further diversifies Kabbage’s committed sources of funding and prepares us to meet the escalating demand for capital access among small businesses,” said Kabbage’s Head of Capital Markets Deepesh Jain. “2019 has proven to be a tide-shifting year as customers accessed more than $670 million from Kabbage in Q2 2019, well surpassing our previously set record last quarter.”

And the senior tranche of the new dual-class transaction earned an A(sf) rating from a leading nationally recognized statistical rating organization. The debt capital commitment is provided by a subsidiary of a leading life insurance company, managed, and administered by 20 Gates Management and Atalaya Capital Management.

Kabbage is known for providing small businesses with access to lines of credit up to $250,000 by analyzing their real-time business data. Kabbage has over 2 million live data connections with its customers in order to quickly perform due diligence. Kabbage reviews real-time data like online sales, banking information, shipping activity, and dozens of other sources for understanding performance. So far, Kabbage has provided over 185,000 U.S. small businesses access to more than $7 billion in capital.

Some of Kabbage’s investors include the SoftBank Vision Fund, BlueRun Ventures, and Mohr Davidow Ventures. And all Kabbage U.S.-based loans are issued by Celtic Bank — which is a Utah-Chartered Industrial Bank, Member FDIC.