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EcommerceBytes-NewsFlash, Number 2636 - September 22, 2011 - ISSN 1539-5065    4 of 5

Kabbage Puts New Spin on the Term Social Currency

By Ina Steiner
September 22, 2011

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A company that offers working capital advances to small online merchants has come out with a new feature. Kabbage currently uses marketplace data, such as seller ratings for online merchants, to underwrite its business customers - and now it is adding social networking data to its arsenal.

With Social Klimbing, Kabbage can reward businesses that leverage social media to attract, interact with and retain customers. Social Klimbing allows customers to connect their Kabbage accounts to existing or new Facebook fan pages and Twitter feeds, which is immediately analyzed and translated into additional capital. As customers increase followers, activities and chatter on Twitter and Facebook, they will automatically gain access to more funds.

The announcement represents the first time a financial services company has provided benefits to its customers as a result of Facebook fan pages and Twitter feeds. Kabbage co-founder and COO Kathryn Petralia said, "While other companies are "talking" about customer engagement, Kabbage is actually quantifying and utilizing it as a means to give small businesses more capital to grow."

Last month, Kabbage raised $17 million in funding to help expand beyond eBay, Amazon and Yahoo Stores. Kabbage provides working capital advances to merchants to help them grow their businesses, and in the coming months, is adding support for merchants operating on Facebook, Etsy, Shopify and Sears Marketplace.

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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