Kabbage expands small business funding with $200m credit facility
Alternative credit company Kabbage has a lot to be thankful for this week. The Atlanta-based start-up received a new $200 million revolving credit facility from Credit Suisse bringing its total debt funding to $750 million, reports Julie Muhn at Finovate (Banking Technology’s sister company).
Kabbage emphasised that this credit facility diversifies its funding sources, which will help it scale faster and bolster its growth.
Specifically, the new funds will help the company serve more and larger small businesses while offering higher lines of credit with longer terms.
Global rating agency DBRS gave investment-grade ratings to the the top two classes of the transaction, which earned ratings of A and BBB.
Both classes are collateralised with assets originated through Kabbage’s automated underwriting technology. This marks the first time DBRS has rated one of Kabbage’s credit facility transactions.
Kabbage has served more than 125,000 small business customers since it was founded in 2009.