FINOVATE: Kabbage has announced plans to move into the Australian market with a white-label offering of its small business lending technology. The launch in Australia represents Kabbage’s first foray into the Asia-Pacific region, having already been in operation in both the U.K. and the U.S.
The service in Australia will be operated by Kikka Capital, which is licensing the platform and will manage marketing, funding, and loan servicing. Kabbage will handle underwriting and management of the loans.
Kikka Capital founder and managing director David Brennan said that the collaboration with Kabbage was a unique opportunity to bring “breakthrough lending technology” to Australia. “Launching on the Kabbage platform allows us to dramatically accelerate our entry into small business lending,” Brennan said.
For Peter Steger, head of business development for Kabbage, the collaboration is a reflection of the platform’s flexibility and an opportunity for Kabbage to access new markets. Kabbage was founded in 2009 and is headquartered in Atlanta, Georgia. The company has funded more than $550 million in loans to small businesses. Kabbage Loans range from $2,000 to $100,000, terms are six months, and small businesses only need a business checking account or PayPal account to apply. Approval only takes a few minutes once all data is provided and accounts verified.
Rather than charge interest, Kabbage assess a lending fee between 1%-13.5% of the amount borrowed for the first two months of the loan, then 1% each month for the balance of the six-month term. There are no early repayment penalties.
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