Results 1 to 15 of 15
Hybrid View
-
05-06-2014, 01:42 PM #1
Out of curiosity, I called them and just asked what they look for. It looks like as long as they are doing at least 1500 a month in sales, they can get them approved; albeit that won't be for a very substantial amount of money but they still claim they can get it done. Also, they don't need to see bank statements if the merchant doesn't have any, as long as they are using something like Paypal. They don't need to have an online store though, they get brick and mortars done as well.
In theory, there could be a bit of overlap in who Kabbage is funding vs. who everyone else is funding, but it seems like a good amount of what they live on are the deals that other people aren't funding simply because of too low of sales volume or lack of a business bank account. Doesn't mean this won't change in the future though!
-
05-06-2014, 02:11 PM #2
Good input. I'd like to add to that since I literally just had the pleasure of speaking to both Rob Frohwein and Kathryn Petralia. I was stunned to learn that 40% of the businesses they fund are brick and mortar based. A year or two ago, that segment was only 5% of what they funded. They've also shifted away from offering a merchant cash advance product and they now offer lines of credit. That means they're not factor rate based anymore.
FICO is a very small part of their analysis so it would not be out of the ordinary to fund merchants with 500 credit scores.
Petralia is 1 of 3 featured executives in the third issue of DailyFunder in a story about human underwriting vs. automated underwriting. The other two are Rohit Arora and Noah Breslow. I think everyone will find the Q&A format of that story very interesting. It went out in the mail today to all our subscribers.
-
05-06-2014, 05:14 PM #3
-
05-13-2014, 01:37 PM #4
Reputation points: 306
- Join Date
- Jan 2013
- Location
- New York City
- Posts
- 409
Similar Threads
-
Lead generation companies
By kborshell in forum Merchant Cash AdvanceReplies: 32Last Post: 05-30-2024, 11:40 PM -
Best A/R - Factoring Companies?
By BusinessLendingMadeSimple in forum All Other LendingReplies: 12Last Post: 11-29-2016, 12:44 PM -
How do you get linked up with these lending companies?
By Monty in forum Merchant Cash AdvanceReplies: 11Last Post: 12-10-2014, 08:03 PM -
Anyone lending to companies that are currently making payments on a BK?
By FCBF in forum Business LoansReplies: 11Last Post: 10-20-2014, 01:12 PM