LendUp, a socially responsible lender for the emerging middle class, announced Thursday (March 2) that it has closed another $100 million credit facility with investment firm Victory Park Capital (VPC).
In a press release, LendUp said the credit facility will fund future loan growth. The facility brings LendUp’s total equity and debt financing to $325 million. LendUp also announced it originated more than 3.3 million loans and surpassed $1 billion in loan originations since its inception in 2012.
“This is an important milestone for LendUp because it proves the viability and sustainability of the market opportunity for socially responsible lending,” said Sasha Orloff, LendUp CEO and co-founder, in the press release. “I’m proud that our business growth and customer loyalty, combined with the continued confidence of our investors, proves that we’re well-positioned to help borrowers improve their financial health and lead better lives. We look forward to continuing to build upon our success.”
LendUp offers technology-enabled loans and credit cards that are backed by financial education and a focus on improving credit. According to LendUp, it has saved borrowers more than $55 million in interest and fees in 2016, up from $16 million in 2015. What’s more, its free credit education videos have been viewed more than 1.2 million times.
Based on LendUp’s own research, 70 percent of customers report having a monthly income that fluctuates, with one third reporting income variations of more than $200 per month. LendUp found that customers who started with the company in 2015 and who had deep subprime credit scores and stayed with LendUp for one year were 20 percent more likely to see a 50 point VantageScore increase versus peers who were in a control group.