Millennial-Focused Lender Secures $300 Million in Financing
Pave, an online lending platform targeting Millennials, announced Friday that Seer Capital had agreed to invest up to $300 million in the company. Pave, which was founded in 2012, plans to use these additional funds to expand operations across the United States in 2016.
“We’ve worked tirelessly on behalf of the many thousands of highly motivated, capable people who are being overlooked and mispriced by the current financial system,” said Oren Bass, CEO and Co-Founder of Pave. “This new financing, coming just five months after the company’s nationwide launch, is a huge vote of confidence in our mission and abilities, and gives us the appropriate means to provide worthy individuals with the financial resources they need.”
Instead of focusing on FICO scores like a traditional lender, Pave looks at a number of other factors to help those who have a limited credit history. Typically, borrowers can receive loans of $3,000 to $25,000 with an APR starting at 6.5%. Loan terms are generally two to three years.
Many Pave borrowers use the money to refinance credit card debt or enroll in skills-based professional education courses to advance their careers.
“We are extremely excited to kick off the new year with the proper backing and resources to develop a host of tailored financing options for borrowers with great potential,” Bass said.