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Golden Pacific Bancorp and financial technology firm Better Finance have teamed up to create an online lending program that is designed to sharply reduce the time it takes to approve and process an SBA loan.
March 28 -
Small-business finance firm Kabbage turns to social media metrics to size up funding applicants.
June 1 -
Firms that offer speedy, but pricey, loans to small companies say business is booming because bank lending to the sector remains tepid.
December 17 -
Kabbage's home-grown technology automates the lending process and gleans insights from social media and shipping data.
May 1
Online small business lender Kabbage has received $270 million in financing from institutional investors.
The deal is "one of the largest credit facilities ever raised in the small business financing sector," according to Kabbage's Wednesday press release. It was structured, placed and administrated by investment banking and capital markets business Guggenheim Securities.
Atlanta-based Kabbage, which launched in May 2011, plans to use the revolving, three-year credit facility as a low-cost source of funding. The financing will also allow Kabbage to "expand its product structure and scale more rapidly to reach more small businesses," according to the release. The company received a $75 million credit facility in April 2013 and has made over $250 in small business loans in the past three years.
"This inaugural debt financing for Kabbage represents the first securitization of [merchant cash advances]and related products to be distributed to capital markets investors," Matthew Perkins, senior managing director at Guggenheim Securities, said in the release. "There is growing investor demand for asset-backed investment opportunities from market leading, technology and data-driven, small business loan originators."
Kabbage founder and chief executive
