Rob Frohwein, chief executive officer, Kabbage

Fintech firm Kabbage said that it has powered a financing program on Alibaba’s online portal to aid small businesses in US improve their cash flow and access global trade.

The “Pay Later” program allows small businesses to obtain up to $150,000 of financing for their orders. Buyers can connect their verified business data like bank account, accounting software, payment processors and apply on Alibaba.com.

The purchase financed via Pay Later will create a six-month term loan with interest rates starting at 1.25% per month. Kabbage said that there are no fees to apply, no fees to maintain the line of credit, no order transaction fees and no early repayment fees.

“Financing at the point of sale requires a fully automated solution that can handle the immense volume of daily transactions that occur on Alibaba.com,” said Rob Frohwein, chief executive officer, Kabbage. “The collaboration with Alibaba.com has already delivered millions of dollars of purchasing opportunity to U.S. small businesses and showcases the adaptability of our technology.”

The beta launch for the program was conducted in June 2018.

“We recognized an opportunity to give our customers a convenient financing solution that allows them to improve their cash flow at competitive rates, so they can have the cash they need to grow their businesses,” said John Caplan, head of Alibaba B2B in North America.

Based in Atlanta, Kabbage provides financial services data and technology platform to provide access to automated funding to small businesses. Kabbage powers small business lending for large banks, including ING and Santander, across Spain, UK., Italy and France. The fintech firm is backed by SoftBank Vision Fund, BlueRun Ventures and Mohr Davidow Ventures among others.

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by Parnika Sokhi
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