By Moriah Costa on Wednesday 20 September 2017
The online lender will use the funds to expand its services across the US.
The online lender will use the funds to expand its services across the US.
Consumer lender LendingPoint has closed a $500m credit facility through Guggenheim Securities, as it plans to expand its online platform across America.
LendingPoint is an online lender that approves personal loans for people who have low credit scores and may not qualify for traditional loans. The platform takes into account other factors besides credit score to determine if individuals qualify for a loan.
The company drew down $138.5 million of the facility at the closing and on 15 September it drew down an additional $32.7 million.
“Investors are looking for opportunities that combine leading technology, sound data and risk modelling, and predictable return,” said Tom Burnside, co-founder and CEO of LendingPoint. “The success of this facility highlights belief in LendingPoint’s vision to provide near prime consumers with more responsible borrowing choices and allows us to provide better access to credit to even more people across the U.S.”
The company uses data and technology to create a model that looks at various factors to come up with a credit analysis. It allows the company to get a more complete financial picture of consumers. Loans range from $1,000 to $26,500, with terms ranging from 24 months to 48 months.
Juan Tavares, co-founder and chief strategy officer at LendingPoint, says the credit facility will help the company democratise the personal loan process.
“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,” he said.