Online credit platform LendingPoint has increased the size of its mezzanine financing to $52.5m.
Paragon Outcomes Management provided the new branch of capital. The companies formed a partnership for the mezzanine credit facility in January 2017, with a size of $20m. Later in the year the firm upsized it, and this new injection, it has reached $52.5m.
With an increase mezzanine pot, LendingPoint will be able to manage its equity by warehouse financing its businesses before selling them into its senior credit facilities.
The increased capital, comes a month after LendingPoint received a $600m credit facility Guggenheim Securities. Last year, the company bagged a $500m credit facility from Guggenheim to help fuel the growth of its consumer loan portfolio.
Georgia-based LendingPoint is an online lending platform, which gives borrowers the chance to get up to $26,500 in credit, across a 12 to 48-month plan. The platform uses its technology to assess the credit risk of a borrower, acknowledging credit score, job history, financial history, credit behaviour and income.
The company processed over 850,000 borrowing applications for more than $9.2bn in the first quarter of 2018. Since the platform launched in 2015, it has helped originate over 70,000 loans totalling over $500m.
LendingPoint co-founder and CEO Tom Burnside said, ?We are delighted by the continued show of confidence from our friends at Paragon Outcomes. Their support has been critical as we grow our origination volume and balance sheet, and march towards profitability next year. Were proud that LendingPoint performance to date means companies like Paragon Outcomes want to be part of our future.p>
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