Description: Online lender Kabbage offers advances to small business owners based on their success as online merchants.
Source:Â CNNMoney.com â€“ video report
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?