Online Loan Company AvantCredit Raises $34 Million
Based in Chicago, Illinois, AvantCredit is a company that helps you find a loan upon deciding multiple factors, not just your credit score. The company has raised $34 million in equity and debt funding from August Capital and Victory Capital. Personal loans range at between $1,000 and $10,000. This is the company’s first round of funding include a Series A equity investment of $9 million led by August Capital with participation from Victory Park Capital. Victory Park also issued a $25 million credit facility to AvantCredit, bringing the total funding to $34 million.
“The team at AvantCredit has developed a robust suite of risk management processes that evaluate consumer credit and make highly competitive loans to underserved borrowers. We are excited to provide financing for AvantCredit as it expands its loan portfolio and meets the growing credit needs of consumers,” stated AvantCredit co-founder Brendan Carroll. “As traditional banks remain hesitant to lend across consumer segments, we will see the growth of new and innovative credit solutions like AvantCredit.”
AvantCredit was founded last year and has written their first loans this year. The company has a loan portfolio of over $4 million with plans to grow it to over $1 billion in the next 5 years. AvantCredit plans to use the funding to grow their consumer loan portfolio and invest in technology / analytics, according to AvantCredit co-founder and chief risk officer John Sun.