Source: Business Insider
As financial and tech companies race to expand their small business credit products, one SoftBank -backed fintech CEO is actively looking for ways to issue customers less money. Rob Frohwein and his cofounders started Kabbage in 2009 to offer automated, fast lines of credit of up to $250,000 for small businesses struggling to get financing from traditional banks. Frohwein told Business Insider he sees small businesses “borrow too much, they borrow too soon, and they hold on to it for too long.” Over a decade of data now enables Kabbage to not just model how individual borrowers have performed, but also to better forecast their specific needs for cash. Visit BI Prime for more stories. Cash is the lifeblood of small businesses. And like blood, it has to flow in order to keep a company alive and healthy. It’s obvious that you must have enough cash on hand to operate, but having too much excess can cause other problems. Kabbage cofounder and CEO Rob Frohwein sees a lot of small businesses grapple with this balance-sheet balancing act, and he’s working on a solution for both sides of the ledger. “We’ve looked at data from [small businesses] borrowing from us, and they borrow too much, they borrow too soon, and they hold on to it for too long,” he told Business Insider in an interview.
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