Salad Money, a social purpose FinTech, has scored £40m from a senior debt facility with a US-based credit fund.
According to Salad, this recent debt facility will help the company serve rocketing demand for affordable credit from NHS and public sector workers.
The company added that the committed facility means more key workers among the UK’s millions under-served by mainstream credit providers will be able to avoid high-cost and payday loans or even loan sharks.
Salad Money is a community development finance institution which offers small-sum loans to key workers in the public sector and NHS and uses open banking and machine learning to assess affordability, so applicants aren’t penalised or unfairly excluded for having an impaired credit score.
Each of Salad’s loans saves a typical customer more than £335 in interest compared with alternatives available to them.
In addition, Salad gives tailored financial education, support and signposting to many applicants whether or not it can offer them credit. Since launching in 2019 it has built a trusted reputation with partner NHS Trusts and among public sector and NHS workers.
Salad Money will use the new finance facility, which complements arrangements with existing funders, to meet the growing demand for affordable credit.
Salad Money CFO Phillip Hyett said, “This new, committed facility brings our total senior debt funding to £50m and with it, the financial firepower to help more NHS and public sector workers avoid high-cost credit. We see first-hand that demand for fair and affordable finance is increasing rapidly and we are delighted to lead the way in helping address this need.”
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