A new partnership between Santander U.K and Atlanta, Georgia-based small business lender, Kabbage, brings same-day funding to SMEs in the United Kingdom.
As explained during a media briefing at the Money 20/20 event in Copenhagen, Denmark, small business owners will use Kabbage’s platform to apply for Santander-financed lines of credit between £500 and £100,000. The process is 100% online, available 24/7, and interest rates range from 8% to 20%. Approval times have varied from as few as 20 minutes to as long as 13 hours.
Pictured (left to right): Michelle Sirpak, director of payment operations for Kabbage, and Jason Dell, head of product, demonstrated the Kabbage Card at FinovateSpring 2015 in San Jose.
Kathryn Petralia, COO and co-founder of Kabbage, praised Santander U.K.’s “preeminent global brand” as well as the bank’s “deep financial expertise, large customer base, and a shared passion for innovation.” Sigga Sigurdardottir, chief customer and innovation officer at Santander U.K., said the collaboration between the bank and the online lender underscored the value of “secure, data-driven technologies that improve the customer experience,” and added that “we are excited to collaborate with Kabbage on this new working capital solution that allows us to provide an entirely new digital service for our small and medium-sized business customers.”
With a staff of 20,000, Santander U.K. serves more than 14 million customers in its 857 branches and 70 “regional Corporate Business Centres.” The financial services provider is a subsidiary of Grupo Santander, one of the ten biggest banks in the world.
Kabbage in minutes provides fully automated financing to SMEs. The company’s real-time platform leverages business-activity data to underwrite, originate, and monitor the entire loan lifecycle, providing business owners with funding that accurately meets their business needs. Last fall, Kabbage raised $135 million in new funding, and expanded its credit facility to $900 million. Earlier in 2015, Kabbage announced that it was powering Sage’s small business loan offering, Sage Small Business Loan powered by Kabbage.
Founded in 2009, Kabbage announced availability of its Powered by Kabbage platform for third parties and partners, and demonstrated its mobile line of credit product, Kabbage Card, at FinovateSpring 2015. Rob Frohwein is CEO.