LendingPoint

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.

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

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. Capelj, Renato (5 January 2021). "Fintech Spotlight: How LendingPoint Accelerates Innovation in Lending". Fintech Focus.
  17. "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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