Victory Park Capital Provides $50MM LendUp Credit Facility
Victory Park Capital, an asset management firm focused on middle-market debt and equity investments, announced it provided a $50 million credit facility to LendUp, a direct lender focused on non-prime borrowers.
The facility will support LendUp’s expansion into new geographical markets across the U.S. Launched in 2012. The company has been growing at a rate of 10-20 percent month-on-month. This year, LendUp plans to launch in a new state every two weeks and expects to originate approximately 300,000 loans.
Using a “borrower friendly” approach, LendUp strives to help those with limited financial alternatives. Borrowers not only benefit from free credit education courses, but also from more attractive loan terms as they move up the “LendUp Ladder.” LendUp rewards customers with points for repaying their loan on time and for taking credit education courses; the more points a customer has, the lower the rate.
“VPC is pleased to partner with LendUp as it continues to enhance its technology platform to meet the needs of non-prime borrowers across the U.S.,” said Brendan Carroll, co-founder and partner at Victory Park Capital. “We believe LendUp is well positioned to continue providing innovative short-term credit alternatives to an underserved customer base and are excited to help the business grow.”
Sasha Orloff, co-founder and chief executive officer of LendUp, added, “We are excited to announce this partnership with a team as experienced in this sector as VPC. This lending facility will go toward serving the continued need for capital by our customers, as well as allow us to expand our product into new markets for individuals that lack the credit score needed to receive a loan from conventional sources.”