Kabbage and Ingo Money have teamed up to expedite the payout of loans into the accounts of small and medium-sized businesses in real time. The move is important news for small businesses in need of a fast loan payout to capitalize on new opportunities or continue operations.
Kabbage and Ingo Money Partnership
Thanks to the new partnership, when businesses get a loan from Kabbage, the Ingo Money technology will be used to deliver the funds to the applicant’s account right away. The loans are going to be paid out using Ingo Money’s push platform with push-payments-in-a-box technology.
The partnership was announced on pymnts.com at which time Kabbage President Kathryn Petralia explained the importance of accelerating the delivery of funds.
Petralia said, “We’ve known for a long time, ever since our first customer came onto our platform and took money via PayPal that business owners want access to funds as soon as they can get them.” In addition to making funds available instantly, she said the new partnership will provide transparency to the lending process.
The company says the new feature is slated for a summertime launch. Kabbage believes the new feature will close the gap between the time a business is approved for a loan and the time those funds are disbursed. In a separate interview conducted by Pymnts, Lisa McFarland, chief product officer at Ingo Money, explained how this time frame compares with the more traditional loan process. McFarland said, “The actual funding process has lagged to days or weeks, in the event that paper checks are issued.”
For Kabbage, this means the system the company has in place for funding small businesses in minutes will now be matched by a system to deliver their money just as quickly. With Ingo Money, Kabbage will no longer need seek cooperation from financial institutions to support the money transfer transaction. McFarland said push payment will extend the experience of the quick loan origination and underwriting to the disbursement of the loan proceeds with an end-to-end process minutes long.
The Need for Quick Funding
Small businesses face many challenges when it comes to running their companies. In addition to the challenges, there are also great opportunities. In cases where capital is needed right away not getting it can mean a lost opportunity or the inability to continue operations. With the new partnership between Kabbage and Ingo Money, businesses can now get both loans and fund dispursements in record time .
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