Consumer credit provider LendingPoint today announced that it has acquired LoanHero, a fintech platform for point of sale finance. Terms of the deal were not disclosed.
Combined with LendingPoint’s credit underwriting and risk management technology, LoanHero will help accelerate LendingPoint’s expansion into point-of-need and point-of-sale financing, with its merchant onboarding and reporting tools and installed merchant base.
Founded in 2014, LoanHero lets merchants offer traditional and promotional loans to their customers. Through one application, merchants provide the best possible financing option for their customers, with credit decisions in real time. Hundreds of merchants use the LoanHero platform across industries including medical, dental, and home improvement.
“LoanHero’s merchant platform is the perfect complement to our consumer portfolio,” LendingPoint co-founder and CEO Tom Burnside said. “The combination of the two companies doubles our origination channels and current customer base and triples the number of consumers we can serve with credit and payment solutions for folks with credit scores from 450 all the way to 850.”
LendingPoint is a balance-sheet lender that uses data and technology in a proprietary model to paint a more complete financial picture of a customer. This model allows LendingPoint to approve loans for more people who may be passed over by traditional FICO results. Loans range from $2,000-$26,500, with terms from 24-48 months. LendingPoint responds to customers in a matter of seconds with an approval decision, creating loan offers aligned with the customer’s financial profile and transparent terms that take the guesswork out of repayment.
LendingPoint and LoanHero both were formed in 2014 and to date have issued almost 70,000 loans totaling close to $500,000,000 in consumer loans.
“Access to credit creates financial inclusion and upward mobility for consumers, and it’s also been proven to increase conversion and sales for merchants,” said Juan Tavares, co-founder and Chief Strategy Officer of LendingPoint. “Our vision is to improve financial access for all consumers at the point they need it — whether that’s an unexpected home repair, or an important medical procedure. LoanHero gives us access to hundreds of product and service providers, dramatically accelerating our ability to serve even more consumers who deserve better access to affordable credit.”
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