Small business loans
Kabbage start to offer finance to UK merchants
We’ve been looking at the Kabbage website and noticed that Kabbage are running a closed beta, offering finance to UK merchants.
Kabbage currently operate in the US, offering short term loans to online sellers and have built up a sterling reputation over the last two years. In September they announced landing $30 million in Series C financing and with their rapid growth in the US estimate that they support some $800 million in annual sales for their small business customers. They also recently had Scott Thompson, ex PayPal CEO join their board.
Kabbage offer a straightforward solution for obtaining working capital with a transaction fee of ranging from 2% to 7% and then a monthly interest rate of 4%. Unlike other companies currently offering three month loans in the UK, Kabbage will extend finance for up to ten months offering some additional flexibility (although you can repay as early as you like).
Unlike traditional banks where you’re a credit score, Kabbage assess your eBay business as well as taking into account your extended online profiles on Twitter and Facebook. In the US they also take into account your Amazon, Yahoo! and Shopify businesses to justify higher loan amounts, that’s likely to come to the UK too.
Currently you won’t be able to apply for a loan direct from the Kabbage home page, but Tamebay have found the sneaky back door beta application form, so if you want Kabbage finance apply here.
Interesting that there are now 3 players in the market. Iwoca, Ezbob and now Kabbage. It would be interesting to do a like for like comparison on the 3 to see which fares the best over varying time periods etc.
I think that people considering taking out such finance are better placed to do that themselves, with their own personal situation and needs as a background, rather than a hypothetical judgement that declares “so and so is best.”
Whilst they offer similar services at first glance, in fact, they are each quite distinct businesses with different offerings.
What IS interesting is that three companies have joined in this sector this year. When last year there were none. That speaks volumes about the state of SME lending from the banks.
Interesting finance solution, I wasn’t aware such a solution was available.
Also can I know more about this business PayPay?:
“Scott Thompson, ex PayPay CEO”
Sure, we wrote about it a few weeks back
I was just bringing attention to the typo. Looks like it is now fixed though 🙂
Nice little article though, it is nice to know Kabbage have such a legend on their side.
What scares the bejeebus out of me when talking about these eBay capital providers is this:
What if you take a loan, buy a load of stock, wait for it to arrive, list said stock and then bamb! eBay hit you with selling limits, or worse, stop you from selling altogether?
Surely your not suggesting that ebay operate Soviet Style(that Josef Stalin would be quite at home with) Secret “Kangaroo Courts” where the Defendant is not informed of the Allegations. Is not allowed to see the “Evidence”. Is not allowed to challenge the “Evidence”. Is not allowed to put their side of the story. Then finds that they are hit by restrictions and ebay CS just ignores their emails except to answer with meaningless standard email telling them to try harder.
I wonder just how many totally innocent ebay traders and their employees are driven onto the dole by ebays thuggish and totally illegal actions every year? Tens, Hundreds, Thousands? Maybe ebay should not just be added to the list of Multi Nationals being investigated for Tax Fraud along with Amazon, Google and Starbucks but for their Stalinist secret “Kangaroo Courts” as well(backdated to when ebay first started to operate in the UK. Hopefully like the Banks with the PPI they will have to payout many millions of pounds in compensation to EVERY single ebay Trader that they have wronged over the years.