3 Things You Should Know About Small Business: April 3
However, another 50% are still cautious about the economy and don't have plans to invest in their businesses, Inc.com says.
3. Kabbage closes a $75 million debt facility. Small-business financing is a hot topic ever since the banks slammed their doors shut during the recession. Alternative lenders have been successful in getting capital to businesses eager to expand but struggling to find access to financing to do it. These lenders have been getting increased attention for their efforts. Kabbage is one example, specifically because of its niche focus on providing cash advances to e-commerce businesses.
The alternative lender announced Wednesday that it closed on a $75 million credit facility, its largest financing transaction to date. Victory Park Capital led the debt financing, while existing equity investor Thomvest Ventures also contributed a significant amount, Kabbage said in a release.
The debt facility will fund advances for the company's rapidly growing customer base and allow it to expand its reach to new customer segments and markets."We have followed Kabbage since its inception and have been exceedingly impressed by the power of its innovative real-time data platform and the team's ability to scale over the last two years," said Tom Affolter, principal of Victory Park Capital. "There is a clear void in the market as traditional financing sources remain reluctant to lend. As a firm, we are excited to provide financing to Kabbage as it is uniquely positioned to deploy this capital to meet the demand for funding from small businesses." Since launching two years ago, Kabbage has extended more than 60,000 advances and expects to provide more than 100,000 in 2013 alone. "This facility represents an enormous vote of confidence from the institutional investment community in the Kabbage model and a significant milestone in our company's history" Kabbage CEO Rob Frohwein, said in the release. -- Written by Laurie Kulikowski in New York. Follow @LKulikowski To contact Laurie Kulikowski, send an email to: Laurie.Kulikowski@thestreet.com. >To submit a news tip, email: email@example.com.
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