How Kabbage Leveraged Envestnet | Yodlee to Launch SMB Lending in Spain
In October 2015, Kabbage announced a partnership with global banking giant, ING, to begin delivering capital instantly to small businesses throughout Spain. ING is the first global bank to use the Kabbage Platform, and the Envestnet® | Yodlee® professional services team worked closely with Kabbage to support the launch of its automated loan application and approval process to provide capital in Spain.
How does Kabbage provide lending solutions to banks and nonbanks seeking to provide customers with a better user experience?
With banks and traditional financial institutions, a small business loan application lives or dies by the owner’s credit score. Unfortunately, an entrepreneur’s score can take some big hits during the early days of starting a new business. Even if a business is successful, the business owner might have relied on personal savings and credit to get to that point. Traditional financial institutions don’t see that success; they only look at the owner’s credit score.
Kabbage helps small businesses become even more successful. Instead of relying exclusively on credit scores, the Kabbage Platform unlocks customers’ financial data and to get a deeper understanding of an applicant’s financial health. Through a simple online application, Kabbage looks at an array of business data to underwrite small business loans.
And it’s fast, too. Once a small business owner lands on the Kabbage website and starts filling out an application, a loan decision can be determined in as little as seven minutes. Seven minutes! Sometimes you can’t even talk to a bank teller in seven minutes.
One of the secrets of Kabbage’s speed is its use of Envestnet | Yodlee Aggregation API to access financial data and quickly make loan decisions. With Kabbage, you can apply for a six- or twelve-month loan, get approved and have access to your funding on the spot.
Another problem small businesses face with traditional lenders is the size of the loan. Some small businesses are just too small, and entrepreneurs have a difficult time getting banks interested if they need to borrow less than $250,000. Kabbage offers revolving lines of credit up to $100,000.
Borrowers have access to their funds 24/7 through the Kabbage website or mobile app, available for iOS and Android devices. Customers can use any size increment up to their max line amount whenever they need it. Kabbage customers use their funding to stock up before a seasonal shopping rush, bulk up their advertising budget and attract more customers, help finish a big project or whatever opportunities arise.
Kabbage isn’t a crowdfunded lender, and it doesn’t act as a middleman to connect borrowers with investors. Kabbage directly supports entrepreneurs with the cash they need to fulfill their business dreams, through a quick and seamless customer experience. To learn more, visit www.kabbage.com.
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