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Kabbage, Known for Small-Biz Lending, Launches New Solution

Kabbage
Kabbage

Kabbage launched a payment solution for small businesses designed to help them get paid faster. “Two-thirds of Kabbage’s more than 200,000 customers rely on invoicing to receive payments today and wait as long as 90 days to be paid,” it explained.

With the launch of Kabbage Payments, customers can create a unique URL for their business and send payment requests through texts, emails or the web to collect card payments. “With more flexibility, the custom pay link eliminates the need to manually create new accounts, open new payment orders, and duplicate work for recurring invoices,” it stated in its announcement.

Kabbage first targeted eBay sellers when it launched working capital loans in 2010, setting off what has become a popular trend among many types of services – including online marketplaces such as Amazon – to offer financing to online sellers.

Kabbage Payments is the first of several new products that Kabbage will launch in the upcoming months, “to enable small businesses to more efficiently and intelligently manage their cash flow.”

Press release follows:

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Kabbage, Inc., a data and technology company providing small businesses cash flow solutions, announced the general availability of Kabbage Payments to its customers, a new payment-processing solution for small businesses that makes getting paid faster as simple as sending a text message. After a successful beta program, this release marks the first of several new products that Kabbage will launch in the upcoming months to enable small businesses to more efficiently and intelligently manage their cash flow.

Two-thirds of Kabbage’s more than 200,000 customers rely on invoicing to receive payments today and wait as long as 90 days to be paid. Leveraging technology that powers Kabbage’s fully automated working capital solution, Kabbage Payments drastically reduces the time required to receive payments in typical net-term invoicing. With Kabbage Payments, users are settling invoices as quickly as 24 hours.

Among the many features of Kabbage Payments, the new custom pay link solves a fundamental challenge for business owners relying on invoice payments. Kabbage Payments customers can create a unique URL for their business and send payment requests through texts, emails or the web to collect card payments securely and quickly. With more flexibility, the custom pay link eliminates the need to manually create new accounts, open new payment orders, and duplicate work for recurring invoices.

“My clients receive dozens—if not hundreds—of invoices a month, so it’s easy for them to pile up and be paid out all at once,” said Lee Brewer, owner of Lee Brewer Enterprise LLC, an advertising firm in New York. “For years, I’ve waited anywhere from 15 to 30 days to get paid for my work. Now, I send clients my Kabbage custom pay link through email or WhatsApp and get paid the next day. This has helped me collect so quickly my cash flow concerns were eliminated seemingly overnight.”

Kabbage Payments also includes:

  • Online invoicing: Quickly and easily create, send and manage invoices.
  • Convenient dashboard: See all payments activity in a single view.
  • Next-day deposits: Access the money you earn in 24 hours or less.*
  • No-fee invoicing: Send unlimited invoices and estimates for free with no monthly fees.
  • Only pay for card payments: Save with low costs at 2.9% + $.25 per credit card payment. Cash and check payments are always free.
  • Free customer support: Speak to a real person on Kabbage’s trusted customer support team.

“Mercator’s latest research shows 65% of small businesses prioritize ease of use when selecting a payments solution. The ability to receive funds through a simple URL matches the digital-first way most business owners operate today,” said Robert Misasi, CEO of Mercator Advisory Group. “Small businesses have a wide set of payment options today and Kabbage’s data connections and leadership in automating funding create a strong pairing to provide small businesses a unique cash flow management solution.”

“Since 2011, we’ve helped hundreds of thousands of small businesses access over $8 billion in funding. We know first-hand a primary need is to cover cash-flow gaps while waiting to be paid,” said Kabbage CEO Rob Frohwein. “Kabbage Payments not only expands our suite of products, but the very definition of our company. We deeply believe in the mission of small businesses and understand what they need to succeed—namely, more time building their businesses and less time worrying about cash flow.”

Kabbage Payments is now available to existing Kabbage customers with public availability coming soon. Any business owner may request early access at www.kabbage.com/payments/early-access.

*Transactions that are processed by 5 p.m. ET will be deposited in your bank account the following banking day. Any transactions that are processed after 5 p.m. ET will be deposited in your bank account within 2 banking days. Settlement to your bank account may be delayed if transactions are flagged for review.

SOURCE: Kabbage Press Release

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Ina Steiner
Ina Steiner
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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