Kabbage has built a reputation as one of the world’s most innovative financing companies. Based in Atlanta, Georgia, the credit company for small businesses is fast becoming a driving force in the success of numerous restaurants in the US.
Kabbage saw an opportunity to bring its unique approach to financing to the restaurant and hospitality operator. Victoria Treyger, who heads the firm’s Sales and Marketing initiatives, noted that catering to the foodservice industry has been a gradual step for the business. “When we launched in May 2011, we focused initially on the e-commerce vertical and so primarily retailers that were selling on Amazon,” she said regarding the company’s target market. Pointing towards Kabbage’s investment in innovation, Treyger said that the growth of the data industry allowed the firm to change their focus.
“2014 was the year where we expanded beyond e-commerce and added dozens of new data sources; that that was really the year where we opened up Kabbage to every small business. It was last year that we saw an opportunity to support the restaurant industry.”
Restaurant and hospitality owners need substantial capital to start their businesses and an even larger cash flow to keep them running. A restaurant manager could run into a problem that requires an immediate solution, and that is where Kabbage comes in. As Treyger points out, restaurants are consumer-based businesses. “They really are inspired and are driven by satisfying their customers and hospitality.” Kabbage helps these enterprises maximize the guest experience through a convenient money-lending platform.
Restaurateurs access Kabbage services by logging onto the company’s website or their one-of-a-kind mobile application. They fill in the application, which is analyzed in under 10 minutes using thousands of real-time data points that a business owner can choose connect, including their business banking accounts, social media presence, bookkeeping software, payment processor technology, online profiles, etc. Using the data, Kabbage qualifies restaurants for lines of credit up to $250,000 based on the full picture of a business’ performance. Treyger believes that using data points to determine whether or not a company receives a line of credit is convenient because it is that information that helps the businesses make decisions every day. However, it is not the only factor that makes Kabbage unique in the competitive financing market.
“One of the things that customers love about Kabbage is the flexibility that our lines of credit offers them in terms of how they use the capital and how they pay. No other products in the world allow you to actually pay for your business needs through a mobile device,” Treyger continued.
Kabbage’s mobile-lending platform was launched in 2016 and has been the cornerstone of the business’s flexible lending to restaurants, along with the adjustable line of credit and advanced accessibility options. “We also have the Kabbage Card that is connected to a line of credit,” Treyger remarked, noting that this feature was unique to the Atlanta-based firm. This allows restaurant owners to finance purchases at any offline or online checkout, without waiting for funds to transfer. Kabbage also offers customized solutions for each of its customers. “We really understand the needs of every single business across every industry,” Treyger stated.
For restaurant owners, tailored solutions from Kabbage come in the form of adjustable lines of credit. “When there is increased demand at restaurants and foodservice operators such as in the summer with large catering opportunities and outdoor patio dining, we have the ability to respond to those needs with higher lines of credit,” Tryeger explained. “We also create terms for the pay back of the line that reflect the seasonality of their business.”
“You only pay for what you take. You can pay it back in six or twelve months, you can pay it off early with no extra charge. There really isn’t another part of the market that has that level of flexibility for small business owners. It’s what we hear over and over again, and why they love it.”
Kabbage, which started out as an e-commerce lending site, now boasts a customer base of over 130,000 small businesses, having lent out more than $4 billion to firms by December 2017. Restaurant and foodservice owners, including hotels and caterers, can get credit of up to $250,000 from Kabbage at present, up from the previous limit of $150,000.
For more information on Kabbage, visit their website or call 888-986-8263