Kabbage, a startup that provides working capital to small businesses, announced today it has partnered with Monsoon Commerce, an e-commerce solutions company.

Through this partnership, Monsoon Commerce customers will have access to Kabbage’s funding solution, and hundreds of them have already been pre-approved for a total of $20 million in funding.

Monsoon Commerce customers plan to use the funding for:

• Pre-buying inventory to prepare for the holiday season
• Expanding their marketing programs
• Upgrading technology 
• Expanding staff and resources

To learn more about Kabbage, watch its FinovateSpring 2012 demo.

Bank Technology News recently named Rob Frohwein, founder and CEO of Kabbage, as one of the top 10 innovators of the year. Kabbage, along with yet-to-be-launched Movenbank, were the only two non-banks to make the list.

In the article, Rob and Kabbage are recognized for the unique business model that aims to provide working capital to small businesses in a matter of minutes.

Bank Technology News interviews Frohwein about the startup:

“Although the company is not profitable yet, ‘we could be profitable tomorrow,’ Frohwein says. ‘Our business is large and most of the people working here are working on improvements to the system and we’re absorbing some losses.’ Changing the strategy to focus on profitability is a simple decision, he says.”

It also provides some additional data:

Kabbage, a startup that lends funds to online merchants, has entered into a partnership with Doba, a drop ship wholesaler:

“Kabbage and Doba customers come largely from the same entrepreneurial universe, including independent online stores and merchants that sell goods on eBay, Amazon, Yahoo, Etsy and other online marketplaces.”

The partnership will give Doba clients access to Kabbage’s working capital and, in turn, help them grow their online businesses.

To learn more about Kabbage, watch its FinovateEurope 2012 demo.