Thursday, June 18, 2015

Bene-credit, not Kabbage

Well, the right impulse...
ATLANTA, June 16, 2015 (GLOBE NEWSWIRE) -- UPS Capital®, a subsidiary of UPS®(NYSE:UPS) that provides supply chain financial, insurance and payment services, announced today a partnership with Kabbage®, a leading technology and data platform that powers automated small business lending. UPS Capital can now offer its small business customers seamless, real-time access to capital via Kabbage, to deliver the borrowing power they need to grow their businesses.  The Kabbage technology platform continuously monitors the health and seasonality patterns of its customers to automatically deliver the right level of funding to each customer at the right time.
"Small businesses are essential to America's economy, as they are responsible for two out of every three new jobs in the United States," said Ronald Chang, president of UPS Capital. "Since the recession, small businesses have had a difficult time accessing the capital they need to manage cash flow, hire new employees or purchase new inventory and equipment. By partnering with Kabbage, UPS Capital can now help more small businesses grow and achieve their potential."
 "UPS has been an important investor and partner for Kabbage since we launched four years ago," said Rob Frohwein, Kabbage co-founder and CEO. "We are thrilled to expand this relationship today to be able to seamlessly deliver capital to millions of UPS small business customers.
But wrong solution...  I critiqued Kabbage here, and in any event, any solution that involves usury is a nonstarter in business.  I recall when UPS extended credit and never charged interest.  Times have changed, and we are headed back to the future.

We do not need computer algorithms to decide how much money you need and when, we need the community building credit extension by the people closest to your business.  Small businesses have been infected with EZ Credit, rewarding the least talented and undermining the best.

Eschew Kabbage.  We don't need asset-less backed capital, we need to extend and receive credit amongst ourselves.

Feel free to forward this by email to three of your friends.