An online lender in Austin, Texas, has raised $100 million in new debt financing that it plans to use to fund loan growth.
BorrowersFirst said in a press release Wednesday that the additional financing will come from Waterfall Asset Management, a New York firm that focuses on high-yield investments.
BorrowersFirst is a relative newcomer to the online consumer-lending business, having launched a little more than two years ago. The company offers 36-month and 60-month installment loans, following the lead of better established competitors such as Lending Club and Prosper Marketplace.
The U.S. online lending industry had a tough year in 2016, with substantial layoffs at some of the sector’s largest firms. But Wednesday’s announcement suggests that some investors still see opportunities.
BorrowersFirst is seeking to distinguish itself by becoming the lowest-cost operator in the sector, and by targeting segments of the market where it can earn above-market returns, CEO Dave Tomlinson said in an interview. The company’s borrowers typically have credit scores between 650 and 740, he said.
The firm, which also has operations in Pleasanton, Calif., has originated approximately $275 million in loans since its launch in late 2014.
