LendingPoint has made a name for themselves in the near-prime consumer lending space with an installment loan as well as a point of sale program (the latter through an acquisition). It has served them well as they have become one of the fastest growing companies in fintech. What many people may not know is that the leadership team at LendingPoint actually come from a small business lending background, having spent many years at CAN Capital or as it was known back then, Capital Access Network.
So, it shouldn’t come as much of a surprise that this consumer lender has added small business lending to its product mix. Today, LendingPoint and eBay have announced that they have teamed up to launch a new pilot program for eBay sellers called eBay Seller Capital, powered by LendingPoint. This new offering provides sellers with financing between $500 and $25,000 at rates ranging from 9.99% to 35.99% and loan terms up to 48 months. There will be no origination or prepayment fees.
I chatted with Tom Burnside, CEO and Co-founder of LendingPoint, yesterday to get the background on this deal. When I asked him why get into small business lending now he made it clear that LendingPoint is just following the flow of money. As the pandemic has taken hold the one area of the economy that is flourishing is ecommerce. They started talks with eBay six months ago and what really won them the deal was the level of automation that LendingPoint brings to the table. Tom mentioned this several times during our discussion that automation is so important for a good user experience and they have put a huge amount of effort into this at LendingPoint over the last couple of years.
The key to an automated lending decision is in access to data. With this program LendingPoint gets access to all the seller data so they can underwrite with a rich data set beyond credit data.
Here is what Tom said in the press release: [Read more…]