LendUp Closes Another $100 Million Credit Facility &
Surpasses $1 Billion in Loan Originations

SAN FRANCISO, Calif. – March 2, 2017 – LendUp, a socially responsible lender for the emerging middle class, today announced it has closed another $100 million credit facility with investment firm Victory Park Capital (VPC) to fund future loan growth. The facility brings LendUp’s total equity and debt financing to $325 million. The firm also announced it originated more than 3.3 million loans and surpassed $1 billion in loan originations since its inception in 2012.

“This is an important milestone for LendUp because it proves the viability and sustainability of the market opportunity for socially responsible lending,” said Sasha Orloff, LendUp CEO and co-founder. “I’m proud that our business growth and customer loyalty, combined with the continued confidence of our investors, proves that we’re well-positioned to help borrowers improve their financial health and lead better lives. We look forward to continuing to build upon our success.”

LendUp’s mission is to provide anyone with a path to better financial health. The company offers technology-enabled loans and credit cards supported by embedded financial education and a focus on improving credit. LendUp has saved borrowers more than $55 million in interest and fees in 2016, up from $16 million in 2015, and its free credit education videos have been viewed more than 1.2 million times.

The Corporation for Enterprise Development (CFED) reports that more than 56 percent of Americans are shut out of mainstream banking because of poor credit or income volatility. Leveraging technology built in-house, LendUp offers exceptional products, service and, where available, credit reporting access to help break cycles of debt and ease income volatility. According to LendUp research:

  • 70 percent of customers report having monthly income fluctuations, with one third reporting income fluctuations of more than $200 per month; and
  • Customers who began 2015 with deep subprime credit scores and had been with LendUp for one year were 20 percent more likely to see a 50-point VantageScore increase that year vs. peers in a control group.

“It has been a privilege to partner with such a mission-driven team over the last three years and we are excited to expand our relationship with this additional facility,” said Tom Welch, Partner at VPC. “Throughout our involvement, LendUp has demonstrated robust growth, while maintaining its underwriting standards, and we look forward to supporting the business further as the platform continues to scale.”

About LendUp

LendUp's mission is to provide anyone with a path to better financial health. Through its proprietary software, it designs safe, transparent products that expand access, lower costs, and provide credit building opportunities for the more than 80 million Americans who currently have limited options within the traditional banking system because of low credit scores and volatile incomes. LendUp is headquartered in San Francisco, CA and has offices in Richmond, VA. LendUp announced its $47.5 million Series C round of equity funding in August, 2016. It is backed by more than $325 million in equity and debt financing from investors including Google Ventures, Victory Park Capital, Y-Combinator, QED Investors, Susa Ventures, Data Collective, Kleiner Perkins, Andreessen Horowitz Seed Fund, Kapor Capital, Yuri Milner, Thomvest Ventures, Bronze Investments, and many others.

About Victory Park Capital

Victory Park Capital Advisors, LLC (VPC) is an investment firm with a focus on alternative credit and a commitment to delivering attractive risk-adjusted returns and capital preservation for its clients. VPC provides privately negotiated debt and equity capital solutions to small and middle market companies across a wide range of industries. We target fundamentally sound businesses in need of liquidity and/or capital structure transformation and often take a leadership role in the financial restructuring process. VPC’s offerings leverage the firm’s special situations and credit structuring expertise and differentiated deal origination capabilities. The firm was founded in 2007 and is headquartered in Chicago, with offices in New York, Los Angeles and London. VPC is privately held and a Registered Investment Advisor with the SEC.