NEW YORK (TheStreet) -- Small-business financing outfit Kabbage, which made its mark by focusing exclusively on funding small e-commerce merchants that sell through Amazon
The company announced a partnership with Intuit
It is a significant expansion for the two-year-old Atlanta startup, which has offered approximately $85 million in short-term financing through more than 70,000 advances to e-commerce businesses since its launch in August 2011. In 2013, it plans to make over 100,000 advances.
Earlier this year, the company expanded its funding offering to the U.K.
More than 4 million small business customers use Intuit's QuickBooks across industries that include retail, manufacturing and service providers.
Merchants funded by Kabbage sell a portion of their anticipated future credit card receivables to Kabbage, and in return can receive as much as $50,000 per six-month period. Businesses pay between 8% and 18% on the advance if they take the full six months to pay back the amount. The percentage is based on a store's monthly revenue, credit quality and time to pay back.
The more platforms businesses sell on, the more incentive Kabbage offers them in the form of funding. Even the amount of social media interaction between businesses and customers can lift advance limits.
"Small businesses need partners that understand their business and can help them save time and money," said Marc Gorlin, co-founder and chairman of Kabbage. "We are incredibly proud to be the first to exclusively use QuickBooks data to make real-time decisions and deliver funding to businesses in minutes. We've been often asked when Kabbage would support the bricks and mortar counterparts to online businesses. That day has arrived. Today's expansion dramatically accelerates Kabbage's vision of democratizing access to capital for all small businesses."