Global financial service platform Kabbage announced on Tuesday it has launched access to custom loans for Kabbage Payments customers. Kabbage reported the new lending product offers U.S. small businesses more control over short-term funding needs.
Kabbage also revealed that with custom loans, Kabbage Payments customers choose any term between three and 45 days and either repay in full when the loan reaches maturity or allocate up to 100 percent of Kabbage Payments revenue towards the balance over the selected period.
“Repayments are only made when a customer processes payments and any remaining balance is due at the end of the term. Custom loans have a one-time fee starting as low as 0.1%, and pricing adjusts dynamically, depending on the term length and repayment method chosen. The result is a new cash flow solution that gives small businesses greater flexibility before they make a borrowing decision.”
Kabbage further explained Kabbage Payments also offers unlimited online invoicing, next-day deposits, zero monthly fees, and free customer support. New Kabbage Payments customers will save with a competitively low fee of 2.25% per credit-card transaction until June 2020. Kabbage CEO, Rob Frohwein, went on to add:
“As a former small business owner, I know managing cash flow is a major headache. We designed our custom loan product to recognize these inherent challenges and provide our customers with even more flexible funding to better manage their businesses.”