LendingPoint closes up to $500M credit facility

LendingPoint announced this week it closed a credit facility worth up to $500 million on Aug. 22. It was arranged by Guggenheim Securities.

Tom Burnside

At closing LendingPoint took down $138.5 million and on Sept. 15 they took down an additional $32.7 million. The funds will help grow the consumer installment loan portfolio, one that grew by 98 per cent in the year ending in August 2017.

Earlier this year LendingPoint signed a participation agreement with FinWise bank, one allowing LendingPoint to offer installment loans with standardized rates, loan agreements, product portfolios, marketing and services to American near prime consumers.

“Investors are looking for opportunities that combine leading technology, sound data and risk modeling, and predictable return,” LendingPoint cofounder and CEO Tom Burnside said. “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.”

Juan Tavares

“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,” cofounder and chief strategy officer Juan E. Tavares said. “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.”