Kabbage Inc, an alternative finance provider of small business loans, has announced that it will begin to license its platform as part of a business model expansion. Aiming to gain better insight on borrowers, Kabbage uses technology to analyze non-credit score data such as Amazon and Ebay customer ratings, along with traditional banking and payment processor activity. Funneling the various metrics together, Kabbage’s platform performs immediate calculations to derive loan worthiness and provide borrowers results of how large of a credit line and rates are available within minutes.
Inaugurating their licensing model, Kabbage has partnered with Kikka Capital of Australia, which will use the lending technology platform to offer a small business lending beginning in May. Under terms of the licensing deal, Kabbage provides onboarding, underwriting and monitoring of the platform, while Kikka Capital manages the operations, marketing, funding and loan servicing.
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The licensing expands Kabbage’s international business model. Prior to today’s news, Kabbage operated internationally using its own brand, of which it launched services in the UK in early 2013. Through licensing, Kabbage aims to create a scalable solution, leveraging its financial technology to be used by external financial institutions seeking a platform to provide small business lending.
In a public statement from the two firms, Pete Steger, Kabbage Head of Business Development, commented, “We continue to lead our sector by developing new opportunities for small businesses to get the funding they need. Collaborating with Kikka Capital demonstrates the flexibility of the platform we have developed and allows Kabbage to extend our reach yet again – this time by leveraging our patented technology to power underwriting for our partners.”
David Brennan, Kikka Capital Founder and Managing Director added, “Working with Kabbage gives us a tremendous opportunity to bring their breakthrough lending technology platform and seamless user experience to small businesses across Australia. Launching on the Kabbage platform allows us to dramatically accelerate our entry into small business lending and to manage risk effectively by underwriting businesses in real time, throughout the entire lifecycle of a business.”