Online direct loan provider LendingPoint has announced it received up $500m for a credit facility from Guggenheim Securities last month.
The company initially took $138.5m from the facility in August and has now received another $32.7m from the loan.
Georgia-based LendingPoint is an online lending platform, which gives borrowers the chance to get up to $20,000 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.
This equity will be used to fuel growth of its consumer loan portfolio, which has nearly double in the last year. The capital will also be used to expand products and services nationwide.
LendingPoint co-founder and CEO Tom Burnside said, “Investors are looking for opportunities that combine leading technology, sound data and risk modelling, and predictable return. LendingPoint’s credit-first, balance sheet approach has proven that it’s possible to unlock access to credit for more consumers who have been underserved by traditional lending, while still offering stable, predictable performance for investors.”
The company received a $100m debt financing round from Ares Management in 2015, which brings total loans to around $600m.
Earlier in the year, LendingPoint announced a participation agreement with FinWise Bank, which allows LendingPoint to offer its product to consumers across the US.
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