LendingPoint, an online direct loan provider, has secured a $250m credit facility from Guggenheim Securities.
The loan provider has the provision to upsize the credit facility to a maximum of $500m. The deal also supports periodic takeout transactions.
Through the credit facility, LendingPoint plans to facilitate the growth of its consumer installment loan origination platform.
LendingPoint co-founder and CEO Tom Burnside said: “From the beginning, our team has understood that building the commerce platform we envision requires offering stable, predictable performance for investors.
“Today’s announcement demonstrates investor confidence in our ability to predict risk both online direct to consumer and at the point of sale. As we continue to build out the platform, we will not lose sight of the need to maintain healthy margins in all of the products and services we offer.”
LendingPoint leverages its own lender licenses to originate loans directly. It also originates on behalf of Utah-chartered lender FinWise Bank.
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The loans range between $500-$26,500 and the loan terms range between 24-51 months.
LendingPoint co-founder and head of capital markets Victor Jose Pacheco said: “The success of this credit facility highlights investors’ belief in LendingPoint’s ability and vision to provide NearPrime consumers with more responsible borrowing choices, as well as confidence in the leadership team at LendingPoint and our unique and differentiated approach to lending.”