Kabbage is is among a growing coterie of technology-powered alternative lenders fueling the wave of entrepreneurship.
Kabbage uses automation and analytics to provide short-term working capital to small and mid-sized businesses, who are often turned away by financial institutions who are either risk-averse or unable to profitably write five-figure loans.
 
“There is a dearth of technology in small business ,” Kabbage co-founder Kathryn Petralia told Atlanta Business Chronicle in June. “Automating the process is not only faster, it is less hassle.”

Not Peer-to-Peer lending or Crowdfunding. Not sure where they get the capital.

“Kabbage, which was founded in 2009 and launched its service fully in 2011, began by serving a market overlooked by traditional banks and financial institutions — online merchants who relied on short-term loans to buy inventory that they would then sell on eBay, Amazon, and Etsy.”