Silicon Valley Bank provided a $100 million debt facility and Trinity Capital closed a $26.6 million facility for Petal.
Petail is a new credit card company aiming to help people build credit. The credit cards are issued by WebBank.
This is Petal’s first asset-backed facility with SVB and Trinity Capital. The company also has an existing $300 million facility with Jefferies, a global investment bank.
“Silicon Valley Bank and Trinity Capital are ideal partners who share Petal’s vision for using technology to expand access to safe and affordable credit,” Andrew Endicott, CFO and co-founder of Petal, said. “We look forward to working together to make that vision a reality for even more Americans.”
More than 100,000 people have been approved for the Petal 1 and Petal 2 Visa cards. Approximately 70% of those consumers had a thin credit history or no credit history at the time their cards were approved. Petal helped these customers to establish a credit score for the first time. People who join Petal with no previous history have an average credit score of 678 after two months, according to the company.
“We are excited to expand our relationships with both SVB and Trinity through a truly innovative capital solution that will bolster Petal’s balance sheet and enable us to pursue our ambitious goals for 2021 and beyond,” Nate Huebscher, vice president of capital markets at Petal, said. “The closing of the transaction, structured during the height of COVID, represents a critical milestone for Petal in our efforts to expand credit access.”
“SVB is proud to support the Petal team with this warehouse facility as they strive to enable individuals to access and build credit responsibly,” Brian Foley, managing director of warehouse lending at Silicon Valley Bank, said. “Reaching 100,000 cards approved is a significant growth milestone and we look forward to continuing to work with Petal as the company matures to the next phase of growth.”
“Petal has achieved incredible growth in just a few years since their launch,” Kyle Brown, president and chief information officer at Trinity Capital, said. “We’re thrilled to partner with the teams at Petal and SVB to provide this warehouse financing facility as the company continues to scale rapidly.”
The Petal credit card program includes two Visa cards:
- Petal 1, introduced in October, is designed to help consumers who already have a credit history and want to improve their credit responsibly and affordably.
- Petal 2 helps people build credit by providing access to a no-fee credit card with cash back and higher limits that people can qualify for even if they’ve never used credit before.