Kabbage, an online loan provider for SMBs, announced plans to license its robust platform.
In a move to expand its services internationally, the company is teaming up with Kikka Capital through a licensing partnership.
In the collaboration, Kabbage provides onboarding, underwriting and system monitoring, while the Perth-based business focuses on operations, marketing, funding and loan servicing. The duo plans to offer its lending services to local clients in May 2015.
David Brennan, Kikka Capital founder and managing director, mentioned, “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.”
Kabbage’s platform uses accurate algorithms and high-powered data to underwrite small business loans in real-time. At the moment, it is the only system in the industry that is fully automated. This allows the tech establishment to assess risk quickly and streamline the delivery of loans.
Unlike traditional lending models offered by banks, SMBs can receive feedback on the status of their application without delay, giving businesses the opportunity to respond to changes instantly. With relevant information at hand, the entire application process takes less than 10 minutes.
Speed is key, and Kabbage has seen interest from banks that want to speed up the underwriting process.
“It is not that banks don’t want to serve more small businesses. The issue is more that banks rely mainly on outdated technology and manual processes where it takes them the same amount of time to underwrite a $100k loan as a $5 million loan. Many banks want to partner with Kabbage to license our technology platform for underwriting and monitoring the health of businesses, so you will see Kabbage announce bank partnerships in the near future,” said Victoria Treyger, CMO of Kabbage.
The company is currently set to welcome new platform partnerships with two unnamed, large financial institutions in April.