Pave, the online lending platform focused on re-inventing borrowing for the Millennial generation, today announced that a consortium of investors led by Seer Capital has agreed to invest up to $300 million in Pave loans and provide the company with additional equity capital.
The financing will enable Pave to expand its capabilities across the United States, while supporting business growth 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."
Founded in 2012, Pave looks beyond the traditional FICO score to better understand both a person’s current financial picture and his or her future prospects. This innovative approach enables Pave to provide individuals, particularly those who have a limited credit history, with better rates than more traditional sources, or even newer alternative options. Through Pave, borrowers may receive loans of $3,000 to $25,000 with annual percentage rates starting at 6.5 percent, payable over a term of two or three years.
Since expanding across most of the nation, Pave has seen more than 40% month-on-month growth in loan volume, with the majority of demand from individuals who are in the beginnings of their careers. Most often, Pave’s loans enable the borrowers to right-size their finances by refinancing burdensome credit card debt, or advance their careers with skills-based professional development courses through organizations like General Assembly.
"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.