Point-of-sale lending company PayBreak has secured an additional £15m in funding from banking group Paragon.
PayBreak has worked alongside Paragon’s structured lending team, which offers UK-based non-bank lenders grow, to expand its own lending capacity.
Paragon’s structured lending team was launched in October last year, with its initial deal being a capital injection to SME lender Liberis.
UK-based PayBreak offers a digital point-of-sale finance service for retailers, allowing customers to spread the cost of purchases through its afforditNOW app.
The service works by a consumer buying a product, but not having to pay anything for up to three months. Instead, a user selects a repayment scheme, which can spread the cost across regular payments over 3 to 12-month periods. To qualify for the short-term loan the purchase has to be over £100.
Retailers can implement the PayBreak service for both their online and offline operations, and can track all payments through an online portal.
PayBreak managing director Julia Throop said, “This additional support from Paragon will only help us go from strength to strength and achieve our plans to reach more clients. By using innovative ideas and technology, we have found a fresh and useful way to help retailers provide flexible finance to their customers and we want to tap into a growing demand for that.”
Last year, PayBreak raised £24.5m in a funding round which was raised to support the development of its solution.
Paragon recently provided a $32.5m capital line to online credit platform LendingPoint, increasing its mezzanine credit facility to $52.5m.
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