Snap Finance, a fintech company and provider of lease-to-own financing at the point of sale to customers of eCommerce and brick-and-mortar merchants, secured a revolving credit facility from a syndicate of lenders led by BMO Harris Bank.
The syndicate also included First Tennessee Bank and BankUnited.
The $100 million credit facility allows Snap Finance to continue to expand with new merchant partners and increase capacity. Snap Finance currently serves more than 10,000 merchant partners and approves up to 80% or more of customers who typically are denied credit through traditional financing methods.
A key factor in extending the credit facility was Snap Finance’s ability to reduce risk by using the Snap AI Verification Engine (SAVE). This proprietary Artificial Intelligence platform instantly reviews hundreds of data points allowing Snap to more accurately assess consumer performance and render faster decisioning compared to traditional underwriting techniques.
“The financing provided by BMO Harris Bank strengthens our business model and our already-solid financial footing,” said Matt Hawkins, founder and CEO of Snap Finance. “And more importantly, this will allow us to help even more businesses grow as we approve more customers for financing.”
According to Snap, this is the largest ever revolving facility for a private consumer lease-to-own company to date.