Atlanta, GA (PRWEB) September 26, 2014 -- Kabbage, Inc., the leading online provider of small business loans, announced today that it has attained a BBB rating on $136 million of class A notes that are part of its $270 million securitized credit facility. This rating is a part of the largest securitized credit warehouse for small business loans and creates a lower cost of capital for the company to continue its rapid expansion.
“Attaining a rating that is better than investment grade is a critical stamp of approval from the investment community. This positions Kabbage for our next stage of growth,” said Kevin Phillips, CFO of Kabbage. “The rating further validates the power of our technology and data platform to manage risk effectively by underwriting businesses in real time both initially and on a persistent basis throughout the entire life cycle of a business.”
The BBB rating opens up Kabbage’s lending platform to new investors, such as life insurance companies and pension funds, who are unable to deploy significant amounts of capital on alternative lending platforms. It also means that the small business alternative financing space led by Kabbage is rapidly moving from alternative to mainstream. Kabbage has already deployed more than $400 million to small businesses, and is now able to access capital at a lower cost to reach even more businesses.
The rating was provided by Kroll Bond Rating Agency on the existing debt facility managed by Guggenheim Securities. Kabbage is expanding the facility to sell the new rated notes beginning this week.
About Kabbage
Kabbage, Inc., headquartered in Atlanta, Georgia has pioneered the first financial services data and technology platform to provide fully automated funding to small business in minutes. Kabbage leverages data generated through business activity such as accounting data, online sales, shipping, and dozens of other sources to understand performance and deliver fast, flexible funding in real time. Kabbage also offers simple consumer loans through its automated platform under the brand http://www.karrot.com. Kabbage is venture funded and backed by SoftBank Capital, Thomvest Ventures, Mohr Davidow Ventures, BlueRun Ventures, the UPS Strategic Enterprise Fund, TCW/Craton and additional investors including Ron Conway’s SV Angel, David Bonderman, founder of TPG Capital, and Warren Stephens, CEO of Stephens Inc. All Kabbage and Karrot U.S. based loans are made by Celtic Bank, a Utah-Chartered Industrial Bank, member FDIC. For more information, please visit http://www.kabbage.com and follow the company on Facebook and Twitter.
Ann Noder, Kabbage, Inc., https://www.kabbage.com/, 480.263.1557, [email protected]
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