21Sep2017

LendingPoint secures up to $500 million for NearPrime loans

This week, LendingPoint announced major news about our business. As we said in our news release:

LendingPoint, the company working to revolutionize access to consumer credit, today announced that on August 22, 2017, it closed an up to $500 million credit facility arranged by Guggenheim Securities…

Today’s announcement marks one of the largest credit facilities raised in 2017 in the online consumer lending industry for a balance sheet lender, providing LendingPoint with additional capital to expand its products and services nationwide, at a significantly lower cost of funds.

You can read the full release here.

Response was quick, led by Reuters, which interviewed LendingPoint CEO, Tom Burnside:

Tom Burnside, co-founder and chief executive of LendingPoint, said in an interview that the size of the facility was a “testimony to the performance of our asset.”

Some of the decline in investor appetite across the sector has been caused by the inability of investors to accurately predict yields for the loans, according to Burnside.

“We have not found that to be a problem because we’ve had good predictability,” he said.

AltFi News spoke with LendingPoint’s Juan Tavares, in its article LendingPoint secures up to $500m credit facility:

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.

A roundup of coverage of the LendingPoint announcement follows below:

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