FinTech: Amex-Backed Kabbage Offers Flexible Funding For Small Businesses

December 8, 2021 | FinTech, News

Kabbage is the fintech unit of American Express.

Kabbage, which is backed by American Express (NYSE: AXP), announced Wednesday the launch of its Kabbage Funding product aimed at small businesses looking for funding including for working capital. Eligible small businesses may avail of flexible lines of credit in the range of $1,000 and $150,000. (BusinessWire)

Kabbage Funding

In June 2021, Kabbage launched a new suite of products for businesses including its Kabbage Checking product, and thereafter commenced Kabbage Payments that makes it simple for small businesses to accept card payments for quicker receipts.

Kabbage Funding adds to this suite and is a business line of credit offered by American Express that approves customers by analyzing their business data in real-time.

“Most small business owners start a company to pursue a passion, not to spend time managing their cash flow and balancing their books,” said Kabbage Co-founder and Senior Vice President at American Express, Rob Frohwein, in a statement. “Our suite of digital cash flow solutions is designed to give small business owners back time in their day, and Kabbage Funding offers convenient funding whenever they need it.”

Real time appraisal and funding

The product now makes it easy for US small businesses (that have been in business for at least one year) to apply for working capital by connecting their business accounts online for analysis of their business information in real time.

Persistent data connectivity helps Kabbage continuously review a customer’s eligibility and ensure they have the right amount of funding available to them at the right time, based on their latest business performance.

No application, origination, annual or monthly maintenance fees apply.

Flexible borrowing

Businesses may choose between a 6, 12, and 18-month loan term, take out more than one loan at a time, and do this as often as they need up to their approved amount. The result is a funding solution that lets small businesses quickly access the exact amount of funding they need, whenever they need it, 24/7, and only pay for the funds they borrow.

There are no pre-payment penalties if they decide to pay back the loan early.

Related Story: American Express Eyeing SMB Lender Kabbage in $850M Deal

Image Credit: Flickr

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