The business has performed well during the pandemic, outclassing some larger lenders, and the sale could have deals within the month, the sources said.
The potential buyers that have emerged so far have been financial institutions and technology bidders, although no private investor has yet expressed interest, the sources say.
Kabbage did not comment. The company, founded in 2009 by the CEO Rob frohwen, ex-president Marc Gorlin and president Catherine petralia as a means of providing easy financing for small businesses, aimed to provide amounts up to $ 250,000, as well as underwriting and service loans. The company was one of the first to innovate in the area of determining the creditworthiness of small business clients.
In recent years, the company has experienced numerous purchases and acquisitions. Kabbage has invested more than $ 1 billion in the technology, allowing it to automate loan applications, according to Barron’s. He has also invested in numerous financial service offerings for small businesses in areas such as payments, to settle funds faster or for analysis and information.
Kabbage had to put a significant number of its nearly 600 employees on leave and stop handling new loans in response to the onset of the coronavirus pandemic in March.
However, the company was backed in April when it was allowed to grant loans for the Paycheque Protection Program (PPP), when it partnered with 135 community banks and provided loans totaling over $ 6.5 billion to 270,000 applicants.
However, that bump might just be a one-time thing, according to bankers who say the boost may not be sustainable since Kabbage has not resumed processing non-PPP loans.
But Kabbage was try to follow with the economy, offering new accounts for small and medium-sized businesses (SMEs), with no costly opening fees and the flexibility to create an account at any stage of the business.