Mobile lender Kabbage has partnered with push payments innovator Ingo Money to speed up disbursement of loans to small and medium-sized businesses (SMBs) accounts in real-time. The team-up, slated for a summer launch, is welcome news to SMBs that need fast loan payouts for their additional working capital.
By leveraging Ingo Money’s “push payments in a box” platform, Kabbage can make the funds available to business debit cards or wallet accounts immediately. Whereas loan application and approval from financial institutions take weeks, online lenders like Kabbage has reduced the entire process to mere minutes.
Kabbage and Ingo https://t.co/OkdHBRYoOW
— DMA (@digmastermindac) April 22, 2018
According to PYMNTS website, Kabbage President Kathryn Petralia addressed the necessity of SMBs having quick access to funding and pointed out that customers often resort to using PayPal to withdraw loan payouts. With Ingo Money, clients now have more available options in moving money within the Kabbage platform.
According to Lisa McFarland, chief product officer at Ingo Money, the push payments functionality means that Kabbage doesn’t need loan originating banks to handle the money transfer transaction to its customers. Apart from the technology, Ingo will also facilitate the SMB authentication and account verification of Kabbage customers prior to real-time funds transfer.
Innovations like mobile lending have become crucial in keeping up with fast-paced technology and the changing business landscape. Small business owners have become more digitally savvy and increasingly depend on mobile platforms for conducting business. With available data online on business activity, sales, shipping, and accounting information, Kabbage can get a comprehensive snapshot of an applicant’s performance right away.
In a study done by Kabbage, about 17 percent of small business loans were made through a mobile device. Following this trend, mobile lending may account for 20 percent of SMB lending by the end of 2018. Kabbage even increased its available credit line up to $250,000 for businesses with larger and expanding operations. As of December 2017, the mobile lender has extended over $4 billion in loans to over 130,000 SMBs in the US.
The mobile lender’s investors include SoftBank Group Corp., BlueRun Ventures, and Mohr Davidow Ventures, as of writing.
[Featured image via Kabbage]The post Kabbage Teams Up with Ingo Money to Disburse SMB Loans Within Minutes appeared first on WebProNews.
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