Posted by & filed under Company Analysis, Growth & Valuation, Industry Analysis.

Description: Online lender Kabbage offers advances to small business owners based on their success as online merchants.

Source: – video report

Date: 02/16/2012


Questions for discussion:

Explain the reasons this sort of financial lending arrangement works for both sides?

  • Is the risk any greater for Kabbage than for conventional bank lending?
  • What metrics would you look at to determine the amount to lend and the interest rate to charge?
  • Could this business exist without collaboration with eBay and Amazon?
  • If Kabbage grows into a major online lending force, how might you expect eBay and Amazon to respond?

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