LendingPoint explained

LendingPoint
Type:Private
Products:Personal Loans, Point-of-Purchase Finance
Foundation:July 2014
Location Country:United States
Location:1201 Roberts Boulevard #200, Kennesaw, GA 30144

LendingPoint is a financial technology platform. The company looks at a person's complete financial picture, taking into consideration credit history, employment history, earning potential, and other data to determine creditworthiness.[1] LendingPoint gives access to more affordable loans for consumers with credit scores between 500 and 850 and discounts traditional creditworthiness factors, such as FICO scores, debt-to-income (DTI) ratios, and payment-to-income (PTI) ratios.[2] It was founded in 2014 by Tom Burnside, Franck Fatras, Victor J. Pacheco, and Juan E. Tavares.

History

LendingPoint launched its first consumer loan product in January 2015.[3] In October 2015, LendingPoint announced a $100 million credit facility with funds managed by the Tradable Credit and Direct Lending groups of Ares Management.[4] Two months later, LendingPoint signed an additional credit facility for $5 million of incremental financing with Aeterna Capital Partners.[5]

In August 2016, former American Express executive Houman Motaharian joined LendingPoint as Chief Revenue Officer.[6] By the end of 2016, LendingPoint had funded more than $100 million in consumer loans across 13 states.[7]

LendingPoint signed an exclusive partnership with ezVerify in 2017 on a new service called ezCarePoint, which allows patients to predict their out-of-pocket expenses and apply for flexible payment plans and loans to cover the costs of medical procedures.[8] On August 22, 2017, LendingPoint closed an up to $500 million credit facility arranged by Guggenheim Securities.[9]

On January 11, 2018, the company announced that it had acquired the merchant portal technology and other assets of LoanHero, a fintech platform for point-of-sale finance.[10] That same month, LendingPoint Merchant Solutions combined the merchant onboarding and reporting tools acquired from LoanHero.[11] On May 17, 2018, LendingPoint announced that it had closed another credit facility also arranged by Guggenheim Securities.[12] On June 28, 2018, LendingPoint upsized its mezzanine financing, bringing the total of its mezzanine credit facility to $52.5 million.[13]

In July 2020, LendingPoint introduced a merchant lending platform called SDKn, which provides an online consumer loan pre-approval portal for companies.[14] LendingPoint partnered with eBay in August 2020 to offer installment loans up to 48 months to eBay’s merchants. Dubbed eBay Seller Capital, the program allows sellers on the e-commerce platform to borrow up to $25,000 with no origination fees or early payback fees.[15] [16] In October 2020, LendingPoint closed its first revolving and largest ever asset-backed security (ABS) issuance at $328.5 million.[16] [17]

In January 2021, the company was funded $125 million via a preferred equity investment from Warburg Pincus.LendingPoint has issued more than $2.3 billion in consumer loans nationwide since 2015.

In May 2022, Lending point announced a partnership with the Illinois-based, community-based financial holding company Midland States Bank. The deal entailed Midland funding consumer loans with its underwriting criteria through the LendingPoints network of point-of-sale retail relationships.[18]

External links

Notes and References

  1. Web site: LendingPoint - Personal Loan Company Reviews - LendingTree. www.lendingtree.com. 2017-05-11.
  2. News: LendingPoint puts customers first. Vitelli. Joann. 26 April 2019. Atlanta Business Chronicle.
  3. Web site: LendingPoint Launches Consumer Platform / THE market / CUToday.info - CU Today. Systems. eZ. CUToday. en-US. 2017-05-11.
  4. Web site: LendingPoint Announces up to $100 Million of Additional Funding Capacity Provided by Funds Managed by Ares Management. 2015-10-14. VentureBeat. 2017-05-11.
  5. Web site: LendingPoint Announces Additional Funding Capacity with Aeterna Capital Partners. www.businesswire.com. en. 2017-05-11.
  6. Web site: Former Amex SME Finance Exec Joins Alt-Lender PYMNTS.com. www.pymnts.com. en-US. 2017-05-11.
  7. Web site: LendingPoint And The Consumer/SMB Overlap PYMNTS.com. www.pymnts.com. en-US. 2017-05-11.
  8. Web site: ezVerify and LendingPoint Launch ezCarePoint to Bring Unprecedented Transparency, Ease and Affordability to Medical Payments. www.businesswire.com. en. 2017-10-10.
  9. News: Online lender LendingPoint secures $500 million credit facility. 2017-09-20. Reuters. 2017-10-10.
  10. News: Fintech start-up LoanHero acquired by rival LendingPoint. Freeman. Mike. sandiegouniontribune.com. 2018-02-21. en-US.
  11. News: 2018-01-12. LendingPoint Acquires LoanHero. en-US. Wall Street Journal. 2020-05-15. 0099-9660.
  12. News: LendingPoint Secures up to $600 Million Credit Facility Arranged by Guggenheim Securities. 2018-07-18. en.
  13. News: LendingPoint Upsizes its Mezzanine Financing, Bringing it to More Than $50 Million. 2018-07-18. en.
  14. News: LendingPoint launches Lending Operating System, SDKn. 17 July 2020 . IBS Intelligence.
  15. News: EBay partners with LendingPoint for merchant loans. Hrushka. Anna. 6 August 2020 . Banking Dive.
  16. News: Fintech Spotlight: How LendingPoint Accelerates Innovation in Lending. Capelj. Renato. 5 January 2021 . Fintech Focus.
  17. News: LendingPoint Closes its First Revolving and its Largest Ever Rated Consumer Loan ABS Issuance. 16 October 2020 . Bloomberg.
  18. 3 May 2022. Midland States Bancorp announces partnership with LendingPoint. IBS Intelligence. 4 May 2022.