San Francisco-based Cardless announces three-year $75m credit facility

Cardless, a San Francisco-based fintech firm, announced a three-year $75m credit facility from i80, a New York lender, to grow their co-branded credit card products.

"We are excited to announce this debt partnership with i80 Group, which will increase our ability to be flexible in providing innovative and unique custom co-branded credit card products," said Michael Spelfogel, co-founder and president of Cardless.

The credit card company, founded in 2019, works with brands to offer consumers the ability to earn brand points through their Cardless accounts. The San Francisco firm currently has card partnerships with LATAM Airlines and Manchester United, among others.

While the announcement guarantees funding for Cardless, for i80 Group, this deal could be their first foray into the post-Silicon Valley Bank opportunity they foresaw — last month, the lender told the WSJ that they had “about 35” companies reach out to them for lending purposes after the SVB collapse, which represented almost as much as i80’s present business.

A credit facility typically allows companies greater borrowing flexibility versus needing to reapproach lenders or conducting near-term funding rounds.

“[Cardless’] understanding of brands, technology and financial services allows them to provide a unique offering to various stakeholders," said Peter Frank, managing director at i80 Group. 

Spelfogel wrote on LinkedIn that Cardless would be expanding into the travel and eCommerce sector.