A new initiative from Santander will see small and medium sized enterprises (SMEs) able to receive approval for funding of between £500 and £100,000 within a matter of minutes. The successful firms will also be able to access to funds within a day – a process that currently takes between two and 12 weeks.
The new service from Kabbage follows an investment in the online lender in October 2015 by InnoVentures, the corporate venture capital business of Santander Group.
Intended to soft launch over the next two months to a group of Santander customers, the new solution will be made available exclusively online and will enable customers to draw down a line of credit as often as once a day. A working capital loan would be an option for SMEs, designed to help management of cash flow including overdrafts, invoice finance, asset finance, equipment finance and fixed term loans.
The Kabbage platform uses a risk scoring methodology determined by Santander UK’s credit experts, coupled with data gathered through other Kabbage ventures. The system also references multiple external sources including credit ratings, social media, payments providers, online marketplaces and the SME’s bank account history.
Nathan Bostock, chief executive officer of Santander UK, commented: “With SMEs comprising 99 per cent of the UK private sector, having fast and secure access to funds would ensure they can continue to make an important contribution to the UK economy. Our collaboration with Kabbage aims to provide UK businesses with the ability to draw down funds as and when required, whether this be covering a short-term funding need or enabling them to seize growth opportunities as they arise.”
Sigga Sgurdardottir, chief customer and innovation officer at Santander UK, added: “The strengths of the Kabbage platform lies in terms of real-time risk modelling and its extensive capabilities to cross reference data against multiple sources. When added to our own customer base, trusted reputation, UK payments infrastructure and understanding of the requirements of UK businesses, this creates a powerful proposition.”
If you are looking for Start-Up financing or SME business financing, contact us at InstaMentor to find out how we can help!
