Kabbage data shows high growth rate of mobile lending among small business owners
Kabbage predicts one of every five dollars funded to small businesses will be via mobile by year end
Kabbage, Inc., a global financial services, technology and data platform serving small businesses, analyzed the lending behavior of nearly 150,000 small businesses, uncovering an increasing growth of mobile lending. The total number of loans accessed through mobile increased by more than 360 percent between April 2014 and February 2018. In the same period, the total dollars accessed through mobile increased over 1,220 percent.
The growth demonstrates a new trend that small business owners expect a simple, no-wait process to apply for and access working capital. Today, 17 percent of all small business loans and nearly 15 percent of total dollars accessed via Kabbage are through mobile. At this rate, Kabbage predicts one of every five dollars funded to small businesses will be through a mobile device by the end of 2018.
“The growth of mobile lending is evidence of an enormous change occurring in this industry,” said Kabbage Chief Revenue Officer, Victoria Treyger. “Small business owners are increasingly digitally savvy and are adopting new technologies faster than ever before. Lending is no different. Kabbage is pioneering this shift in lending by making it a priority to meet small business owners where they are and integrate seamlessly into how they’re already running their businesses.”
“I run my entire company from my phone. It’s how business works today, and I can no longer afford to be stuck in one place handling one issue at a time,” said small business owner, Kevin Hennessey, President of Brabo Payroll in Plymouth, Massachusetts. “The ability to access capital through Kabbage’s mobile app whenever and wherever I am has saved me innumerable hours of paperwork and, frankly, makes the most sense. My numbers are good. I know my numbers are good. They should be all a lender needs to see my business is worthy of funding – not all the traditional paperwork and delay.”
Kabbage uniquely offers the ability for small businesses to apply, qualify and withdraw funds from a mobile app, which is available in the App Store® and Google Play™ store. The app provides customers on-the-go access to lines of credit up to $250,000. There are no up-front costs to apply, no annual fees to hold the line of credit, and customers may withdraw funds at any time.