LendingPoint has secured up to $ 600 million in credit facility arranged by Guggenheim Securities
KENNESAW, Ga .– (BUSINESS WIRE) –LendingPointThe company, which works to revolutionize access to consumer credit, announced today that it has closed a credit facility of up to $ 600 million arranged by Guggenheim Securities, the investment banking and capital markets division of Guggenheim Partners.
With this new agreement, LendingPoint has secured $ 1.1 billion of senior loan financing in less than a year. In September 2017 the company announced
It had a committed credit facility of up to $ 500 million, also arranged by Guggenheim Securities.
“The sizes, prepayments and interest rates of our credit facilities are testament to the outstanding performance of our portfolio to date,” said Tom Burnside, Co-Founder and CEO of LendingPoint. “This mixed rate on this latest facility is exceptionally low – LIBOR plus 467 basis points – and the advance is 90%. This underscores that our lenders believe our credit-first-balance sheet business model is working. When we started LendingPoint, we knew that by successfully solving loans for those with credit scores between 580 and 700 – which we refer to as “NearPrime” – we would maintain strong capital markets support. This new facility in Guggenheim and its pricing confirm that we are successful. ”
LendingPoint uses dozen of APIs to collect thousands of data points for each applicant. Proprietary risk models have been developed that allow the company to get a more complete financial picture of the client and admit more people who might otherwise have been overlooked by traditional FICO results. While the company gives credit score to individuals across the full range, 580-850, it focuses on NearPrime borrowers. LendingPoint processed more than 850,000 applications arising from borrowers requesting more than $ 9.2 billion in loans in the first quarter of 2018.
The financing announced today is the latest development in LendingPoint’s business which signals its rapid growth this financing will continue to fuel. In January 2018, LendingPoint became announced
It had acquired a technology platform from a point-of-sale (POS) lender. This platform formed the basis for LendingPoint Merchant Solutions, which LendingPoint launched in March to provide POS finance to retailers and service providers – from orthodontists to auto mechanics.
“Our goal is to make LendingPoint a win-win-win business, which means we align the interests of all of our stakeholders: our borrowers, our dealers and our investors,” said Burnside. “Our portfolio is delivering consistent results, and we offer loan products in many deserving yet underserved Americans so they can put them on successful financial paths.”
In addition to serving as the sole structuring advisor for this line of credit, Guggenheim Securities also served as the sole lead manager. CBIZ MHM is the administrative office. The US Bank National Association is the note and paying agent.
LendingPoint which goes directly to the consumer in online loans ranging from $ 2,000 to $ 26,500 with a maturity of 24 to 48 months. Its point-of-sale loans range from $ 500 to $ 15,000, with terms of 12 to 60 months. Since the initial loan was granted in 2015, LendingPoint has raised more than 50,000 loans totaling more than $ 500 million.
LendingPoint is a FinTech balance sheet lender working to revolutionize access to credit. The company is creating a better credit and credit experience by looking for more reasons to say “yes”. This helps consumers across the spectrum of credit access affordable credit and lead better financial lives. It is LendingPoint Merchant Solutions The platform offers dealers and other service providers a fully integrated solution for financing private customers from a single source, with which more customers can be converted at the point of sale. LendingPoint is a privately held company based in Kennesaw, Ga. Based in San Diego. It was recognized by one of the best consumer credit companies in the country in 2018 US News & World Report, one of the best personal loans from NerdWallet and the fastest growing private company in metro Atlanta from the Atlanta Business Chronicle. For more information visit https://www.lendingpoint.com.
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