Sunbit, a Los Angeles-based lending startup co-founded in 2016, has successfully raised $355 million in debt financing, led by JPMorgan Chase, Mizuho, and Waterfall Asset Management. The company specializes in providing consumer loans ranging from $50 to $20,000 for in-person transactions at various brick-and-mortar locations such as car dealerships, dental offices, and eyewear shops across 47 states. With a competitive edge in a $7 trillion market, Sunbit aims to offer a unique alternative to traditional credit options, charging an average interest rate of 20%, slightly lower than the typical credit card rate. The company has seen substantial growth, approving 90% of applicants and originating over 100,000 loans monthly, with plans to become profitable soon. However, it faces challenges, including managing credit reporting complaints and ensuring disciplined underwriting standards to mitigate risks associated with lending to lower-income consumers.
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