By Moriah Costa on Thursday 9 March 2017
The U.S. lender has originated more than 3.3m loans since launching back in 2012.
Online lender LendUp has closed a $100m credit facility with investment firm Victory Park Capital, the company announced.
The funds will be used for future loan growth and brings its total equity and debt financing to $325m. It has also surpassed $1bn in loan originations since it was founded in 2012.
"It has been a privilege to partner with such a mission-driven team over the last three years and we are excited to expand our relationship with this additional facility," said Tom Welch, a partner at VPC.
The San Francisco-based firm provides loans, credit cards and financial education to middle-class Americans who might not otherwise have access to traditional bank loans and products.
About 56 per cent of Americans do not qualify for credit or financing due to low credit scores, according to research from the Corporation for Enterprise Development.
"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.
The company said it has saved its borrowers more than $55m in interest and fees in 2016, compared to $16m in 2015. Its education videos have been viewed more than 1.2m times.
Its customers who had subprime credit scores were 20 per cent more likely to see an increase of 50 points in their credit scores within a year, compared to other peers, the firm said.