UPS Capital is announcing a new partnership with Kabbage Inc.
Kabbage Inc. has pioneered the first financial services data and technology platform to provide fully automated funding to small business in minutes.
UPS Capital, the financial services business unit of United Parcel Service, offers traditional and non-traditional financial services and insurance products.
UPS Capital can now offer its small business customers seamless, real-time access to capital via Kabbage, to deliver the borrowing power they need to grow their businesses.
Kabbage is venture funded and backed by SoftBank Capital, Thomvest Ventures, Mohr Davidow Ventures, BlueRun Ventures, the UPS Strategic Enterprise Fund, TCW/Craton and additional investors, including Ron Conway’s SV Angel, David Bonderman, founder of TPG Capital and Warren Stephens, CEO of Stephens Inc.
UPS Capital president Ronald Chang says in a statement:
“Small businesses are essential to America’s economy, as they are responsible for two out of every three new jobs in the United States. Since the recession, small businesses have had a difficult time accessing the capital they need to manage cash flow, hire new employees or purchase new inventory and equipment. By partnering with Kabbage, UPS Capital can now help more small businesses grow and achieve their potential.”
Rob Frohwein, the co-founder and CEO at Kabbage, says in a statement:
“UPS has been an important investor and partner for Kabbage since we launched four years ago. We are thrilled to expand this relationship today to be able to seamlessly deliver capital to millions of UPS small business customers.”
Details of the partnership have not been disclosed and no changes in executives or employees are anticipated at this time.
With this merger, small businesses should have improved logistics with small loans being automated as the transactions take place. Kabbage leverages data generated through business activity such as accounting data, online sales, shipping and dozens of other sources to understand performance and deliver fast, flexible funding in real time. Through the Karrot brand, Kabbage offers simple consumer loans through its automated platform.
Image: UPS
Regular banks seem determined to create an atmosphere where their competitors can succeed. They won’t loan, so other people step in and loan. They charge for checking accounts, other companies offer them for free if they bank online.
Aira Bongco
I think they will become more open once they see that the competitors are taking center stage. I can imagine that a time for that will eventually happen.