Kabbage, Inc., the leading online provider of working capital, published the results of a customer survey highlighting that 8 out of 10 Kabbage customers are overwhelmingly optimistic for the upcoming 2013 holiday season, with 41% of businesses expecting a much stronger holiday season in 2013 than 2012. Small businesses also plan to increase their borrowing for the remainder of 2013 in order to meet the robust demand.
This follows a year of healthy small business growth in 2013, with 76% percent of respondents reporting increased revenue for the first 6 months of 2013 vs. the same period in 2012.
Other key findings from the survey include:
- 65% of companies expect to borrow more working capital in 2013 vs. 2012. Of those, 64% plan to borrow more based on expectations of stronger sales, while 20% plan to borrow more because they are more optimistic about the economy.
- The top 4 sources of working capital for small businesses are credit cards, online cash advance sites, banks, and friends & family.
- Q4 remains the busiest time for small businesses. 44% report that Oct-Dec is their busiest selling season, while 38% report consistent sales throughout the year.
“We are proud that the majority of our customers are enjoying healthy growth in 2013 and are investing now to gear up for a strong holiday selling season,” said Rob Frohwein, Co-Founder and CEO of Kabbage. “This data not only signals that we have a big holiday season ahead for the small business sector, but also the critical role Kabbage plays in fueling overall economic growth. Every time we fund our customers, they use it to expand their business by buying inventory, hiring staff, launching marketing campaigns, and much more. This creates a positive growth cycle that feeds right back into our nation’s economy.”
The survey was conducted in July 2013 of Kabbage customers. More than 200 customers responded to the survey. See the small business infographic for complete results of the survey.
About Kabbage, Inc.:
Kabbage, Inc., headquartered in Atlanta, has pioneered the first financial services data and technology platform to provide small businesses financing in fewer than 7 minutes. Kabbage leverages data generated through business activity such as online sales, shipping, and dozens of other sources to understand performance and deliver fast, flexible funding in real time. Kabbage is venture funded and backed by Thomvest Ventures, Mohr Davidow Ventures, BlueRun Ventures, the UPS Strategic Enterprise Fund, with additional investors including: Ron Conway’s SV Angel, David Bonderman, founder of TPG Capital, Warren Stephens, CEO of Stephens Inc., Western Technology Investment, H. Barton Asset Management, and TriplePoint Ventures. For more information, please visit www.kabbage.com and follow the company on Facebook and Twitter.