Challenges

Small business owners, such as local bakers, personal trainers, bodega owners or general contractors, start their company because they want to make a living pursuing their passion. They don’t start their company to spend 20-plus hours a week managing their cash flow.

Kabbage from American Express helps U.S. small business owners simplify back-office operations through flexible funding. Kabbage Funding offers eligible small businesses flexible lines of credit between $1,000 and $250,000. Small businesses can apply online in minutes, and once approved, access working capital 24/7. Small business owners can access the exact amount of funding they need, when they need it, avoiding trips to the bank, submitting multiple applications, filling out paperwork manually and waiting weeks or months for a funding response.

Plus, all Kabbage Funding customers get immediate access to Kabbage Insights for free, a data-driven tool that allows small businesses to forecast, track and analyze the cash flows of their business 24/7. The insights from the tool help complement Kabbage Funding to help small business owners make more confident funding decisions, aiding them to understand how much working capital they need, for how long, and its impact on their growth.

Primary target

Which group does your product/service primarily target?

Description of Innovation

Kabbage from American Express is a leader in the fintech space by changing the way small businesses manage their cash flow. Applying real-time data, Kabbage provides small businesses a suite of integrated cash-flow technologies from flexible lines of credit, digital business checking accounts, fast payments, and predictive business analytics. With the powerful backing of American Express, Kabbage can offer millions of small businesses the opportunity to access digital tools to help them grow stronger, lasting companies.  

As a leader in predictive analytics for small businesses, our tool Kabbage Insights produces free personalized forecasts to predict the future cash position of a business. Customers can set a desired low-balance threshold and receive automated alerts if accounts are predicted to dip below it, empowering small businesses to identify, act upon and prevent cash deficits before they occur. 

Additionally, Kabbage provides simplified back-office operations through flexible funding. Kabbage Funding offers eligible small businesses flexible lines of credit between $1,000 and $250,000— with the powerful backing of American Express. To save small businesses time so they can continue to focus on running their operations, we created an online application that only takes minutes to complete.  Kabbage from American Express has innovated a data and technology platform to provide U.S. small businesses digital cash flow solutions, including funding, analytics and business checking.

Results

In the past 12 months, we launched our full suite of integrated cash flow tools. After our acquisition, we pushed to become an even bigger leader in the fintech space by changing the way small businesses manage their cash flow and leveraging American Express's backing to offer millions of small businesses the opportunity to access digital back-office operational tools.

We have contributed new, simplified products to the market that can help small businesses grow stronger, lasting companies. We increased our line of credit offering from a max of $150,000 to $250,000 which will help small businesses get the funding they need to better survive economic obstacles such as inflation and supply chain shortages. Having access to a greater amount of funds can help small businesses better compete against big box sellers who easily access large funding amounts.

Additionally, we enhanced our free data analytics tool - Kabbage Insights. All Kabbage Funding customers get immediate access to Kabbage Insights to forecast, track and analyze the cash flows of their business. Businesses connect business bank accounts and financial tools they use daily to aggregate the money in and out trends of their business for real-time cash flow analysis without additional overhead costs.