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SoftBank-Backed Lender Kabbage Cuts Off Businesses as Cash Needs Mount

  • Small-business lender Kabbage said to slash credit lines to $0
  • Online lender raised $250 million from SoftBank in 2017
Kabbage mobile app

Kabbage mobile app

Source: Kabbage

Kabbage Inc., an online lender backed by SoftBank Group Corp., cut off credit to its small-business clients in the past week, more than a dozen customers and an employee said in interviews.

The borrowers, who range from software consultants to heavy-equipment contractors, said Kabbage didn’t give them any notice, and that they learned their credit lines had been suspended only upon logging into their accounts. Some said they were counting on the money to get through the tough times ahead.