Elevate sets stage for funding diversification.
BANKING AND CREDIT NEWS-May 4, 2017-Elevate sets stage for funding diversification
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Elastic SPV, which purchases loan participations in the Elastic line of credit product originated by Republic Bank & Trust Company ("Republic Bank"), has increased its debt facility with Victory Park Capital from USD 150m to USD 250m, according to Elevate Credit, Inc (NYSE: ELVT).
This is the first step in a two-step process to further increase and diversify the funding capacity for the Elastic line of credit product.
During the second quarter of 2017, an additional SPV will be created as another funding source for the Elastic line of credit product. This additional SPV for Elastic would provide additional funding, diversified funding sources and further lower the cost of funds.
The Elastic line of credit product is originated by Republic Bank, member FDIC. Elevate provides Republic Bank with marketing services related to the Elastic program, and Elevate licenses to Republic Bank the jointly developed website, technology and proprietary credit and fraud scoring models to originate and service Elastic customers.
Elevate has originated USD 4bn in non-prime credit to more than 1.6m non-prime consumers to date. Its responsible, tech-enabled online credit solutions provide immediate relief to customers today and help them build a brighter financial future.
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