Atlanta based small business lender Kabbage has raised $200m in revolving debt financing from Credit Suisse.
The funding will help the company increase the number of loans it can make to larger companies in the US. The average size of those loans will grow to “north of $200,000,” she said. As Petralia describes it, it’s the largest-ever credit facility provided by Credit Suisseto a loans platform that makes all of its lending decisions based around algorithms and machine learning. To date, the company has served 125,000 customers and made over $3.5 billion in loans by evaluating a myriad of data points related to the company, from accounting details to more lateral information related to its social media profile, location, and line of business. With some 1.5 million data points in all being crunched as part of its decision-making, the claim is that Kabbage’s algorithms are more accurate at finding loan-worthy candidates and avoiding defaults.