Expanding its alternative finance lending model beyond the small and medium sized enterprise (SME) sector, Kabbage launched a platform for consumers last year named Karrot. Since then, they have also added a licensing model to their list of solutions, with an Australian partnership signed in March, the first live offering of this unit. Although partnering with Australian firms, the new entity was launched using the Kabbage brand behind it.
Becoming what is Kabbage’s first true white label partnership, the company has announced a new deal with Sage. Under terms of the deal, Sage is launching marketplace lending to SMEs, in an entity called Sage Small Business Loan that will be powered by technology from Kabbage.
Marketing the SME sector around the world, Sage’s products include accounting software, business solutions, and payment products for solutions. The current deal with Kabbage is being operated by Sage Payment Solutions, a division of Sage North America. The division provides merchants with support to receive multiple forms of payments such as credit and debit cards, loyalty, cards, and electronic checks. With the launch of Sage Small Business Loan, the lending offering is being integrated within the existing payment solutions for its merchant customers.
FBS Receives Best Forex Broker Europe 2019 Award by The European MagazineGo to article >>
Overall, the deal follows a trend of marketplace lenders partnering with firms that target the SME market, and can leverage their existing customer base by adding lending services. Earlier in the year, Lending Club joined forces with Alibaba to provide lending to merchants to handle their inventory acquisition needs.
About the opportunity to work with a firm with an existing business customer base, Jason Dell, Head of Product at Kabbage, stated, “Sage is our first partner because we believe their large customer base of small and midsized businesses is well suited to quickly benefit from our fully automated lending solution and obtain the capital they need to grow.”
Paul Bridgewater, CEO of Sage Payment Solutions, added, “Sage is focused on providing small businesses with the software, services, and resources they need to grow and thrive. This partnership with Kabbage allows Sage to provide small businesses with much-needed financing.”