March 26, 2015
By Bob Coleman
Editor, Online Small Business Lending Report
I start with Kabbage — the online alternative lender that is on track to loan $1 billion to US and UK Main Street this year.
Kabbage’s small business loans are short term working capital loans paid back in six months — usually less than $50,000. The APR is around 18%. Loans are based on data from a variety of sources and not financial statements — QuickBooks, Xero, ebay, PayPal, business checking account, etc.
The company has raised more than $460 million in debt and equity.
And now Kabbage is entering the Australian market as Kikka in May. The venture was funded last year when Kabbage raised $50 million Series D round led by Japanese investor SoftBank Capital.
Lendio Raises $20.5 Million for its Small Business Loan Platform.
The private, Utah company raises $20.5 million round of funding led by Napier Park’s Financial Partners Group, along with Blumberg Capital, North Hill Ventures, Pivot Investment Partners and prior investors Tribeca Venture Partners, Runa Capital and Highway 12 Ventures.
Lendio says it will use the funding to accelerate online innovation to make it easier for business owners to find financing, deepen relationships with lenders, expand the partnership program and grow its team of trusted loan advisors.
‘Lendio has become the go-to hub for small business owners to obtain the financing they need to grow and thrive. Our focus is to provide three essential benefits to the business owner — offer a wide variety of loan options, speed up the process and reduce the time and effort it requires to get funded and provide a white-glove trusted experience,” says Brock Blake, Lendio’s founder and CEO. “Because we have served hundreds of thousands of business owners, we’ve been able to scale our business and improve the lending experience through an easy-to-use online matching platform, advanced machine learning and lender integrations.’
‘Lendio has created a marketplace with tremendous growth potential and has proven invaluable to both the lenders and the many businesses it serves,” says Investor nad new Board Memeber Chris Gottschalk. “The Blumberg Capital team believes in Lendio’s vision and its ability to become the premier trusted brand for small business lending.”