US fintech platform LendingPoint, has closed a $900m, three-and-a-half-year forward flow committed purchase programme with an asset management firm partner.

LendingPoint launched in 2015, targeted at borrowers with poor credit histories. LendingPoint has grown its business by offering credit to consumers across the credit spectrum. Last year, almost 7 million consumers applied for a loan from LendingPoint. According to LendingPoint, the FICO-based model of evaluating credit worthiness was broken, leaving behind thousands of deserving consumers. LendingPoint has offered loans to consumers with FICO scores as low as 585. Instead of targeting borrowers with a high credit score, the firm says it assesses what it terms ‘responsible banking and financial track record’.

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This latest funding represents the firm’s largest and longest-term committed forward flow programme to date in terms of the volume of assets to be originated and sold by LendingPoint.

“This deal illustrates the high level of confidence our financial institution and asset management partners have in the LendingPoint underwriting model,” said Tom Burnside, CEO and co-founder of LendingPoint.

LendingPoint: revenue +75% in 2022

Last year, LendingPoint reported a record 75% y-o-y increase in revenue. LendingPoint has driven over $8.7bn in loan originations since 2015. It claims a net promoter score of 86, with a repeat customer base of over 30%.

“Our strategy is to stay hyper-focused on ensuring that we have the right programmes in place for our customers that create financial flexibility and a great customer experience no matter where they are in their financial journey,” added Burnside. “This programme will help us further deliver the power of financial possibility for consumers and businesses alike.”

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