Brabo Payroll Grows its Team — And its Revenue — With the Help of Kabbage
Kevin Hennessey is energized by helping small businesses. His company, Brabo Payroll, provides comprehensive payroll, benefits and human resources services for nearly 200 clients in New England and across the U.S.
A Marine Corps veteran who served in Iraq, Kevin built his business on the values of loyalty, resilience and hard work — and it shows. In addition to running Brabo Payroll day to day, he works directly with his clients — mostly from small businesses — and invests in their success. “I want to meet with the owner and help them with their challenges,” he says. “People hire us because they know we have their back.”
Financing to Manage Growing Business Needs
Brabo Payroll has grown rapidly since Kevin started the business in September 2016. Monthly revenue increased by 10 times in 2017, thanks to organic client growth and four acquisitions.
As Kevin expanded his team to meet client demand and sell to new customers, he faced the challenge of managing greater overhead costs. “I need to bring on new people to grow, but I need the runway of available capital to know I will be able to pay their salary,” Kevin says. “With every hire, I’m investing about four months of their annual salary into training.”
After hearing about Kabbage in the fall of 2017, he applied for a line of credit.
A Solution for a Business Owner on the Go
As someone who manages his business almost entirely from his smartphone, Kevin appreciates that Kabbage is mobile-friendly and straightforward to use. He applied through the Kabbage mobile app and accesses his account almost exclusively from his phone.
Transparency and speed are added benefits. “The terms are clear, and I was approved instantly,” he says, comparing the process to a traditional bank’s 20-page loan application. “Nobody has time for that.”
With Kabbage, Kevin saw his line of credit increase after connecting QuickBooks, additional bank accounts and Brabo Payroll’s social media accounts. “My numbers tell the story of my business, and I didn’t have to go through the whole dog and pony show of a traditional loan application.”
This line of credit gave him the flexibility to hire a new salesperson who quickly landed 10 new accounts and generated more than $20,000 in monthly revenue. For a small business, he says, “that’s huge.”
“Without the ability to hire, I would be stagnant,” he adds. “I can’t do everything on my own!”
By the end of 2018, Kevin expects Brabo Payroll will reach $100,000 in monthly revenue. To reach this goal, he plans to grow his team by another two or more salespeople.
Kevin’s advice for other small business owners? “Borrow responsibly. Make sure you have a plan for what you’ll do with the capital, how you’ll pay it back and how it will help you grow.”