LendingPoint
TypePrivate
FoundedJuly 2014
Headquarters1201 Roberts Boulevard #200, Kennesaw, GA 30144,
United States
ProductsPersonal Loans, Point-of-Purchase Finance
WebsiteLendingPoint

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 500–850 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 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 preferred equity investment from Warburg Pincus. LendingPoint has issued more than $2.3 billion in consumer loans nationwide since 2015.[17]

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

References

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