LendingPoint, a Kennesaw, GA-based consumer installment loan origination platform, closed a $250m credit facility arranged by Guggenheim Securities.
Guggenheim Securities is the investment banking and capital markets division of Guggenheim Partners.
The credit facility has an accordion feature, which allows the company to increase the size of the credit facility to up to $500m. On the closing date, LendingPoint drew down $215m of notes from the credit facility.
The company intends to use the facility to fund the continued growth of its platform.
Led by Tom Burnside, co-founder and CEO, and Jose Pacheco, Co-Founder and Head of Capital Markets, LendingPoint originates unsecured consumer installment loans directly using its own lender licenses and also originates for FinWise Bank, a Utah chartered bank, member FDIC and for First Electronic Bank, a Utah chartered bank, member FDIC. The originations are done direct-to-consumer online, and through thousands of merchant and service providers nationwide which offer financing at the point of sale.
The company combines data and technology to create a proprietary model that brings additional dimensions to traditional credit analytics. This model allows LendingPoint to obtain a more complete financial story of the customer and to approve customers who otherwise may have been overlooked by lenders with traditional, FICO-score dependent, credit scoring models.
Offered loan sizes range from $500 to $26,500, with terms from 24 to 51 months.