LendingPoint, an online lender that caters to consumers with blemished credit records, announced Wednesday that it has closed a credit facility of up to $500 million.
The Kennesaw, Ga.-based firm is using the new funds to make unsecured installment loans in 30 states plus the District of Columbia. Loans carry annual percentage rates of 15.49% to 34.99%.
LendingPoint said that it has drawn $170.2 million since the facility closed in August. The deal was arranged by Guggenheim Securities.
“Today’s announcement marks an important step in our ability to make credit fair again for a huge segment of the population who are deserving, yet underserved,” Juan Tavares, LendingPoint’s chief strategy officer, said in a press release.
The 3-year-old startup is part of a crop of fledgling lenders that look beyond credit scores to assess the likelihood that borrowers will repay. Its scoring model is premised on the idea that scores developed by the likes of Fair Isaac are overly pessimistic regarding certain consumers.
In March, LendingPoint announced a partnership with FinWise Bank, a $55 million-asset institution based in Utah. The deal gave LendingPoint the ability to bypass state-by-state licensing requirements.