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EcommerceBytes-NewsFlash, Number 2256 - April 01, 2010 - ISSN 1539-5065    1 of 3

Kabbage.com to Provide Business Loans to eBay Sellers

By Ina Steiner
EcommerceBytes.com
April 01, 2010




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eBay sellers who need cash can soon look to Kabbage.com for short-term business loans. The Atlanta-based company will evaluate sellers based on such information as how long they've been selling on eBay, their customer ratings, whether they have an eBay Store, and funds flowing through their PayPal and merchant credit card accounts.

Marc Gorlin, co-founder and Chairman of Kabbage, said the company hopes to turn the process of applying for a business loan into a 10-minute process from the time sellers go through a pre-screening process, to filling out an application similar to a credit card application, to getting cash deposited via AHC or into their PayPal account, if they are approved.

The model is similar to eBay's Bill Me Later, but Kabbage deals in commercial loans that are issued by Urban Trust Bank, a federally chartered thrift based in Florida and DC co-founded by Robert L. Johnson, who launched Black Entertainment Television (BET), and Frank Hanna.

The site is using an unnamed third-party company to help it build the risk decision engine.

Mr. Gorlin said Kabbage interest rates will be higher than a business loan from a bank, and on par with a business credit card. The longest loan period would be 6 months.

After attending eBay's On Location event for sellers in Atlanta with his colleagues Kathryn Petralia and Robert J. Frohwein, Mr. Gorlin said he is even more excited about Kabbage's business model. He expects to launch the Kabbage service in 45 - 50 days.

About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

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