Online lending platform LendingPoint has received a $250m credit facility from Guggenheim Securities.
An accordion feature has been added to the financing which allows the company to increase the size of the facility to $500m.
These new funds will be used to support the consumer instalment loan origination platform, which grew by 64 per cent in July compared with the same period last year.
The company originates unsecured consumer instalment loans directly using its own lender licenses and also originates for FinWise Bank and First Electronic Bank. Its originations are conducted direct-to-consumer online and via thousands of merchant and service providers across the US that offer financing at the point-of-sale.
Its technology analyses additional customer financial information to offer better offerings for consumers, it claims. Loans are available from $500 to $26,500 on terms between 24 and 51 months.
LendingPoint co-founder and CEO Tom Burnside said, “We are in the business of revolutionizing and democratizing commerce. We started by using data and technology to tell unique credit stories — looking at people’s potential, not just their past. We then moved to point of sale financing to help most consumers with alternatives to credit card revolving debt and compound interest.
“Even as we provide more data, tools and services to transform commerce, we will always take care to make credit fair again for a huge segment of the population who are deserving — yet underserved.”
Last year, the FinTech received a $52.5m capital line from Paragon Outcomes Management to support the growth of its mezzanine funding.
Copyright © 2019 FinTech Global
