Results 1 to 15 of 15
-
05-05-2014, 12:11 PM #1
Is Kabbage competing with traditional MCA companies?
http://techcrunch.com/2014/05/05/kabbage-50m/
They just raised another 50MM bringing the total raise to over $450MM...is anyone losing deals to them?? Or are they not really competing in the same game?
http://www.crunchbase.com/organization/kabbage
-
05-05-2014, 12:19 PM #2
- Join Date
- Sep 2012
- Location
- New York, NY
- Posts
- 1,780
I've seen some on-line merchants who have Kabbage loans but I haven't seen any brick and mortar stores use them...yet!
-
05-05-2014, 12:20 PM #3
I wonder if we are competing for the same business
-
05-05-2014, 12:30 PM #4
- Join Date
- Sep 2012
- Location
- New York, NY
- Posts
- 1,780
I believe Kabbage is competing directly for the same business as MCA companies. I'm not sure what the criteria for approval is though. I would imagine their criteria is much more stringent since they give online approvals in 7 minutes!
-
05-05-2014, 12:32 PM #5
You are probably right....I am sure they cant do high risk deals and approve them in 7 minutes
-
05-05-2014, 01:03 PM #6
- Join Date
- Sep 2012
- Location
- New York, NY
- Posts
- 1,780
Actually, Kabbage can have you FUNDED in 7 minutes! They can probably approve an application in one minute!
-
05-05-2014, 01:16 PM #7
Kabbage is here at Lendit in san fran. I'll have to find them and ask.
-
05-05-2014, 03:39 PM #8
-
05-06-2014, 09:50 AM #9
- Join Date
- Oct 2013
- Location
- New York, NY
- Posts
- 1,203
-
05-06-2014, 01:42 PM #10
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 #11
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 #12
-
05-13-2014, 01:37 PM #13
- Join Date
- Jan 2013
- Location
- New York City
- Posts
- 409
-
05-13-2014, 01:46 PM #14
Did Kabbage say why they shifted from an mca to a line of credit classification? Just curious if interviews touched on the whys.
-
05-13-2014, 02:37 PM #15
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