Money Available To Expand Your Online Business
The concept of small business financing is one that gets people very excited. On the various national radio and TV shows I have hosted over the last 20 years this topic would be in the top two or three in popularity. Setting aside the urban legends, most small businesses can not obtain financing (especially in the current economic climate). To make matters worse, if you have an online business you may find it even more difficult to get a bank to understand your operation and take a chance on loaning to you.
New Lender Offers Loans Strictly To Online Businesses
Kabbage says its name is derived from 'cage' – a nickname that is sometimes used for money. I do not usually reference cage without including corned beef in the same sentence, so this is not a word I use in place of money. What is more interesting than their name, however, is the concept; small loans exclusively for online businesses. What is even more compelling is how streamlined the process is. After completing the application you may be approved and have your money in as little as 10 minutes via Pay Pal!
According to our research, Kabbage makes most of its loans to businesses operating within eBay, Yahoo, or Amazon (although the list of other networks they will work with is expanding). In addition to a personal credit check, the company accounts heavily on an online business' reputation and transaction history in the online community they operate within.
How Much Money Can I Get?
The amount of money each person can potentially be approved for will vary broadly, but the average initial loan is about $ 10,000 (although initial loans can be as much as $ 40,000). Kabbage appears to have plenty of money to lend as this summer they raised another 17 million from investors. The interest rate you will pay will range from 6% to 16%. Surprisingly, 55 percent of the loans applied for are approved.
You may have plenty of questions about repayment terms, costs, etc … For that I will direct you to the Kabbage.com FAQ page.
One thing that I take from this is the continued growth and recognition of online businesses as equally legitimate with their bricks and mortar counterparts. If you have yet to join us for one of our free Tuesday night workshops on how to start an online business of your own, please reserve your space today.