[CraaaCraaa Radio]

Kudos to Kabbage for funding over and crossing the threshold of 4 Billion to merchants for the year 2017 and the year is not over yet!!!

Everyone likes some Kabbage?

http://debanked.com/2017/12/kabbage-...ntl-expansion/

[Zach]

Impressive. I'm curious how their portfolio performs.

[MCAVeteran]

impressive how they scaled like that without needing 3rd party originations as their marketing model.

[Jess]

impressive how they scaled like that without needing 3rd party originations as their marketing model.

Can debanked provide clarification

1. Does the $4 billion include loans generated by Banks that use their technology. Vast margin difference. If they licensed their tech to a company that used to to generate $200 million in loans is that $200m included in the $4 billion?

[ADiamond]

impressive how they scaled like that without needing 3rd party originations as their marketing model.

they can literally approve you for financing within 10-15 minutes - it's probably the most straight-forward funding company i've ever seen.

[Karen37a]

Is that 4 billion for 1 year? Or since inception.

I had looked at the numbers in 2016...I am 90% sure they had 2 billion since inception then.

They are backed by a pool of investors including Santander investors/ Softbank, blue run....7-10 others ...thru Celtic bank

Softbank made 3 Billion off of its 100 billion tech fund, in 5 months, which if possible...makes those other numbers look small.

Another company has a trillion dollar war chest....which is why not moving in tandem...as a group, by being Positive and Bullish always.
Harmed us.I know I am not getting near that trillion dollars thru an "elevator pitch"

[CraaaCraaa Radio]

Is that 4 billion for 1 year? Or since inception.

I had looked at the numbers in 2016...I am 90% sure they had 2 billion since inception then.

They are backed by a pool of investors including Santander investors/ Softbank, blue run....7-10 others ...thru Celtic bank

Softbank made 3 Billion off of its 100 billion tech fund, in 5 months, which if possible...makes those other numbers look small.

Another company has a trillion dollar war chest....which is why not moving in tandem...as a group, by being Positive and Bullish always.
Harmed us.I know I am not getting near that trillion dollars thru an "elevator pitch"

Karen its the threshold of crossing over the 4 billion mark

[MidnightAdvance]

impressive how they scaled like that without needing 3rd party originations as their marketing model.

They get their leads from CC giants and the like, Most MCA credit pulls always have kabbage in them. Very impressive.

[jake2276]

they can literally approve you for financing within 10-15 minutes - it's probably the most straight-forward funding company i've ever seen.

This is true, but they also require login to paypal amazon and bank accounts prior to approval.

[CraaaCraaa Radio]

This is true, but they also require login to paypal amazon and bank accounts prior to approval.

In all reality you link up as many accounts that you have to show your revenue stream. The dashboard that Kabbage has is amazing. But you can just link up 1 account and you will be approved based off the 1 account. It is not mandatory to link up paypal or amazon, but it would behoove you to do so to your benefit of a higher approval amount. I have had merchants get funded same day with kabbage, applied in the am and funded by 4pm eastern time in the merchants account

[michaelh]

Kudos to Kabbage for funding over and crossing the threshold of 4 Billion to merchants for the year 2017 and the year is not over yet!!!

Everyone likes some Kabbage?

http://debanked.com/2017/12/kabbage-...ntl-expansion/

How come you changed the actual article to make it look like Kabbage funded all that in one year?

Alternative lender Kabbage is exiting 2017 with a bang, having just crossed the $4 billion threshold for loans deployed across more than 130,000 small businesses so far. The latest milestone represents a 30% spike in both total funding and the number of merchants on its platform since April 2017, which is when they celebrated their previous new threshold. Victoria Treyger, chief revenue officer for Kabbage, took some time to talk with deBanked about the latest milestone, international expansion and mobile strategy.

[CraaaCraaa Radio]

How come you changed the actual article to make it look like Kabbage funded all that in one year?

Alternative lender Kabbage is exiting 2017 with a bang, having just crossed the $4 billion threshold for loans deployed across more than 130,000 small businesses so far. The latest milestone represents a 30% spike in both total funding and the number of merchants on its platform since April 2017, which is when they celebrated their previous new threshold. Victoria Treyger, chief revenue officer for Kabbage, took some time to talk with deBanked about the latest milestone, international expansion and mobile strategy.

Thats called correcting an error Snapper. That is why we have an edit button. I also included the link in the original post as well .

Are you bored?

[michaelh]

Nope but your post makes everyone think they funded 4 billion in 2017 not since the beginning of funding.


What would be more interesting is the Lawsuit against Kabbage and Celtic
https://www.natlawreview.com/article...d-partner-bank


"True Lender" Litigation Heats Up: Small Business Sues Marketplace Lender And Partner Bank, Alleging Conspiracy To Evade Usury Laws
Tuesday, October 31, 2017

Over the last several years, a number of U.S. state and federal government enforcement actions have challenged the viability of the bank partnership model that many marketplace lenders have used to fund consumer and small business loans. Specifically, regulators have argued that, in partnerships where the non-bank entity controls much of the funding process or the bank has little-to-no risk of loss, the non-bank entity is the “true lender.”

Under such circumstances, state regulators have sought and obtained steep penalties for violations of state lending laws, particularly usury limits. Similarly, the Consumer Financial Protection Bureau has convinced at least one court to hold that collecting on usurious loans originated under the bank partnership model is a violation of the federal Consumer Financial Protection Act (and recently tried the case seeking substantial penalties). (See CFPB v. CashCall, No. 15-cv-7522-JFW (C.D. Cal. Aug. 31, 2016)

Private litigants are now following suit. On October 12, 2017, a small business and its owner filed suit against Kabbage, Inc. and Celtic Bank in Massachusetts federal court (No. 17-cv-11976, D. Mass.), alleging that the defendants’ funding model was designed to evade Massachusetts’ usury law. Kabbage provides small business loans through its partnership with Celtic, an industrial bank chartered by the State of Utah. Plaintiffs obtained a number of loans and now allege that Celtic allowed Kabbage to “rent” its bank charter to originate usurious loans and that Kabbage is the “true lender” (in part because it allegedly bore the risk of loss). Plaintiffs assert claims under Massachusetts’ usury and consumer protection statutes, as well as under the federal RICO statute and the Lanham Act. Notably, plaintiffs seek to void the loan agreements, including the arbitration and choice-of-law provisions therein. Defendants have not yet had the opportunity to respond to the complaint.

The Kabbage case exemplifies the litigation risk inherent in using bank partnerships to originate high-interest loans, a practice that has become more common as fintech and traditional banking entities collaborate. We will continue to monitor developments in this case and other “true lender” litigation.
Copyright 2017 K & L Gates

[CraaaCraaa Radio]

Nope but your post makes everyone think they funded 4 billion in 2017 not since the beginning of funding

Ok Snapper I understand, there is no possible way Kabbage would be able to put out 4 Billion in one fiscal year.
This is all public information Snapps.
How long you been in the industry?


If you read my post than clicked on the debanked link i included, I think your question would have been answered

[CraaaCraaa Radio]

Nope but your post makes everyone think they funded 4 billion in 2017 not since the beginning of funding.


What would be more interesting is the Lawsuit against Kabbage and Celtic
https://www.natlawreview.com/article...d-partner-bank


"True Lender" Litigation Heats Up: Small Business Sues Marketplace Lender And Partner Bank, Alleging Conspiracy To Evade Usury Laws
Tuesday, October 31, 2017

Over the last several years, a number of U.S. state and federal government enforcement actions have challenged the viability of the bank partnership model that many marketplace lenders have used to fund consumer and small business loans. Specifically, regulators have argued that, in partnerships where the non-bank entity controls much of the funding process or the bank has little-to-no risk of loss, the non-bank entity is the “true lender.”

Under such circumstances, state regulators have sought and obtained steep penalties for violations of state lending laws, particularly usury limits. Similarly, the Consumer Financial Protection Bureau has convinced at least one court to hold that collecting on usurious loans originated under the bank partnership model is a violation of the federal Consumer Financial Protection Act (and recently tried the case seeking substantial penalties). (See CFPB v. CashCall, No. 15-cv-7522-JFW (C.D. Cal. Aug. 31, 2016)

Private litigants are now following suit. On October 12, 2017, a small business and its owner filed suit against Kabbage, Inc. and Celtic Bank in Massachusetts federal court (No. 17-cv-11976, D. Mass.), alleging that the defendants’ funding model was designed to evade Massachusetts’ usury law. Kabbage provides small business loans through its partnership with Celtic, an industrial bank chartered by the State of Utah. Plaintiffs obtained a number of loans and now allege that Celtic allowed Kabbage to “rent” its bank charter to originate usurious loans and that Kabbage is the “true lender” (in part because it allegedly bore the risk of loss). Plaintiffs assert claims under Massachusetts’ usury and consumer protection statutes, as well as under the federal RICO statute and the Lanham Act. Notably, plaintiffs seek to void the loan agreements, including the arbitration and choice-of-law provisions therein. Defendants have not yet had the opportunity to respond to the complaint.

The Kabbage case exemplifies the litigation risk inherent in using bank partnerships to originate high-interest loans, a practice that has become more common as fintech and traditional banking entities collaborate. We will continue to monitor developments in this case and other “true lender” litigation.
Copyright 2017 K & L Gates

[Jess]

Nope but your post makes everyone think they funded 4 billion in 2017 not since the beginning of funding.


What would be more interesting is the Lawsuit against Kabbage and Celtic
https://www.natlawreview.com/article...d-partner-bank


"True Lender" Litigation Heats Up: Small Business Sues Marketplace Lender And Partner Bank, Alleging Conspiracy To Evade Usury Laws
Tuesday, October 31, 2017

Over the last several years, a number of U.S. state and federal government enforcement actions have challenged the viability of the bank partnership model that many marketplace lenders have used to fund consumer and small business loans. Specifically, regulators have argued that, in partnerships where the non-bank entity controls much of the funding process or the bank has little-to-no risk of loss, the non-bank entity is the “true lender.”

Under such circumstances, state regulators have sought and obtained steep penalties for violations of state lending laws, particularly usury limits. Similarly, the Consumer Financial Protection Bureau has convinced at least one court to hold that collecting on usurious loans originated under the bank partnership model is a violation of the federal Consumer Financial Protection Act (and recently tried the case seeking substantial penalties). (See CFPB v. CashCall, No. 15-cv-7522-JFW (C.D. Cal. Aug. 31, 2016)

Private litigants are now following suit. On October 12, 2017, a small business and its owner filed suit against Kabbage, Inc. and Celtic Bank in Massachusetts federal court (No. 17-cv-11976, D. Mass.), alleging that the defendants’ funding model was designed to evade Massachusetts’ usury law. Kabbage provides small business loans through its partnership with Celtic, an industrial bank chartered by the State of Utah. Plaintiffs obtained a number of loans and now allege that Celtic allowed Kabbage to “rent” its bank charter to originate usurious loans and that Kabbage is the “true lender” (in part because it allegedly bore the risk of loss). Plaintiffs assert claims under Massachusetts’ usury and consumer protection statutes, as well as under the federal RICO statute and the Lanham Act. Notably, plaintiffs seek to void the loan agreements, including the arbitration and choice-of-law provisions therein. Defendants have not yet had the opportunity to respond to the complaint.

The Kabbage case exemplifies the litigation risk inherent in using bank partnerships to originate high-interest loans, a practice that has become more common as fintech and traditional banking entities collaborate. We will continue to monitor developments in this case and other “true lender” litigation.
Copyright 2017 K & L Gates

Yeah-it's the RICO charge that interests me-who knows if the CFPB has any teeth going forward. Victory Park Capital is being charge with RICO via their role at Think Finance as well.

[Karen37a]

# 1 they are doing something "like" 3rd party integrations


And as far as the Rico Charges ....almost EVERYONE will get charged with Rico when you lose someone money and you go thru regulated sources.

They use it as a weapon to leverage you to get their money back

( new subject: if people ever knew that there is a source that has a bitcoin type product that is "saying" that its 1 coin= 1 dollar or backed by a dollar....then they are taking that other coin and buying bit coins with it.... (( having an unlimited printing supply of this "other coin"))...like printing an unlimited money supply then turning it to bitcoin then cashing in...original are not mined....surging the price of bitcoin they would be shocked)

This company cant be audited...and if it could I would reverse arbitrage it with my fake investing background.

Another one of my famous quotes.

" And then the Lie becomes the truth"

And the one we are typing about is private ....so we cant get ahold of numbers

People are going to look back on Bernie Madoff in the wayyy future and think "that was like someone stealing someone's lunch money at school"
At least they have someone else to regulate not us

[MCAVeteran]

several companies are or have been sued for usury and rent a bank charter scheme allegations. some are ongoing. most of these are consumer loans but its crossed over to business loans as well. victory park was recently included in a suit against think finance which spun off to become elevate for using tribal land to make loans.

[Karen37a]

several companies are or have been sued for usury and rent a bank charter scheme allegations. some are ongoing. most of these are consumer loans but its crossed over to business loans as well. victory park was recently included in a suit against think finance which spun off to become elevate for using tribal land to make loans.

This is why some of us moved towards Hedge Funds vs Bank

And also whey some took pause in an imploding market....and pulled back plans to be a Direct Funder or syndicate temporarily until the dust settled

We saw it coming. Even typed about it and was yelled at