Further highlighting Forbes’ point that the traditional banker is dead, small business financing company Kabbage announced today it received a revolving, 3-year line of debt financing, totaling $270 million.
The funds, which were provided by Guggenheim Securities, will be used to supply small businesses with working capital, both in the U.S. and internationally.
This new installment comes a year after the Atlanta-based company received $75 million in debt financing from Victory Park Capital and Thomvest Ventures.
Kabbage has seen an increasing demand for small business financing, both for web-based businesses and brick-and-mortar stores. The Wall Street Journal commented on its growth, reporting:
“In the last 15 or so months, default rates have dropped by more than 50%…. while Kabbage’s business has grown five-fold. The company aims to provide $1 billion in credit to businesses next year.”
Rob Frohwein, CEO, hinted that growth has been so dramatic that the company expects to pull in more financing soon. In an interview with TechCrunch, Frohwein comments on the funding, stating:
“Yes, this is a large facility, but looking at our growth rate, it’s something that we will need to look at again in a reasonably short period of time, believe it or not.”
To learn more about Kabbage, check out its live demo from FinovateSpring 2013 where it debuted its QuickBooks Financing Platform.