Online lender LendingPoint announced Tuesday (Sept. 19) that it had closed an up to $500 million credit facility on Aug. 22.
In a press release, the company said the credit facility was arranged by Guggenheim Securities. LendingPoint noted it drew down $138.5 million of the facility at the closing, and it took an additional $32.7 million on Sept. 15. The proceeds are being earmarked to bankroll the growth of its consumer installment loan portfolio, a business element which has roughly doubled between August 2016 and August 2017.
“Investors are looking for opportunities that combine leading technology, sound data and risk modeling and predictable return,” said Tom Burnside, co-founder and CEO of LendingPoint, in the press release. “LendingPoint’s credit-first, balance sheet approach has proven that it’s possible to unlock access to credit for more consumers who have been underserved by traditional lending, while still offering stable, predictable performance for investors. The success of this facility highlights belief in LendingPoint’s vision to provide NearPrime consumers with more responsible borrowing choices, and allows us to provide better access to credit to even more people across the U.S.”
According to the company, the up to $500 million credit facility is among the largest credit facilities raised in the online consumer lending market in 2017. It will provide the company with more capital to expand its products and services around the nation.
“LendingPoint is in the business of democratizing access to credit for millions of people who are overlooked by risk models that rely too heavily on traditional credit scores,” said Juan Tavares, co-founder and chief strategy officer of LendingPoint, in the same press release. “We do this by using data and technology to tell unique credit stories — looking at people’s potential, not just their past. Today’s announcement marks an important step in our ability to make credit fair again for a huge segment of the population who are deserving, yet underserved.”