As small business owners increasingly shun regular bankers’ hours, online lender Kabbage reported 145,000-plus customers accessed more than 300,000 after-hours loans for a total of more than $1 billion in funding.
“The findings illuminate the true around-the-clock nature of business owners,” said Kabbage CEO Rob Frohwein. “While we wish small business owners could reclaim their nights and weekends, we built Kabbage to allow business owners to access funds on schedules convenient to them, not us.”
Kabbage’s analysis was supported by a new report from the Electronics Transactions Association which found that every $1 provided to small businesses via online lending platforms resulted in $3.79 in gross output in local communities.
The total number of dollars accessed through Kabbage outside of typical banking hours increased more than 6,000% between 2011 and 2018, reflecting business owners’ growing comfort in accessing online capital.
The majority of after-hour lending (64%) was accessed during the work week, totaling $754 million. The remaining 36% occurred on Saturdays and Sundays, totaling $429 million.
Headquartered in Atlanta, Kabbage is a global financial services, technology and data platform that powers small business lending for large banks such as ING and Santander.