[isaacdstern]

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

[MCNetwork]

I've seen some on-line merchants who have Kabbage loans but I haven't seen any brick and mortar stores use them...yet!

[isaacdstern]

I wonder if we are competing for the same business

[MCNetwork]

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!

[isaacdstern]

You are probably right....I am sure they cant do high risk deals and approve them in 7 minutes

[MCNetwork]

Actually, Kabbage can have you FUNDED in 7 minutes! They can probably approve an application in one minute!

[Sean Cash]

Kabbage is here at Lendit in san fran. I'll have to find them and ask.

[Capital Stack]

Nice!!!

DailyFunder mag is in the grab bags for all attendee's...

Kabbage is here at Lendit in san fran. I'll have to find them and ask.

[AndyYSCISOdept]

I wonder if we are competing for the same business

I don't really understand the Kabbage model?

[CASHCASH]

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!

[Sean Cash]

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!

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.

[Capital Stack]

Great stuff Sean. Upload some photo's of the show. Cant believe I missed this one, awesome conference.

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.

[JayBallentine]

I was stunned to learn that 40% of the businesses they fund are brick and mortar based.

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.

40% of their businesses are brick and mortar businesses who take an average of $500????

[MCAVeteran]

Did Kabbage say why they shifted from an mca to a line of credit classification? Just curious if interviews touched on the whys.

[Sean Cash]

Did Kabbage say why they shifted from an mca to a line of credit classification? Just curious if interviews touched on the whys.

They didn't tell me why unfortunately.