Kabbage to Scrounge Up Credit Scores
Buried in the news today that Kabbage, the small business lending startup, secured a $6.7 million round today were the company’s plans to build its own credit scoring system.
The company says that it plans to create its own score for online merchants that “takes into account sales cycles, inventory needs, turnover rates, shipping behaviors and repayment history.”
“We see this much broader range of data that tells us so much more about creditworthiness, that most traditional lenders would never look at,” said Rob Frohwein, CEO. “We think there’s an entirely new market for that data.”
Interestingly, this is similar to what Cortera has attempted to provide. Broadly, there are more than a few competitors in the business of providing information about small businesses (Dun & Bradstreet, Hoover’s, etc).
