Petal, a credit card startup pioneering “Cashflow Underwriting” as an alternative to traditional credit scoring, announced on Wednesday it has completed a $300 million debt facility with Jefferies. Petal reported that it entered into a similar facility to borrow up to $30 million in debt capital from Jefferies last year and the expanded debt facility gives Petal additional fuel to continue to expand its card program.
“Our expanded facility with Jefferies provides an excellent foundation for serving our current and future customers for many quarters to come. It’s a massive vote of confidence in Petal’s mission to create a fundamentally better credit product experience that better serves the needs of modern customers.”
Michael Wade, Head of U.S. ABS capital Markets at Jefferies, also commented:
“We are pleased to once again support Petal in its mission to help people succeed financially by offering its customers access to the credit they deserve.”
Petal was founded in 2016 and is looking to build a different kind of financial services company with a mission to make safe and affordable credit accessible to everyone.
“Petal is a credit card company built to help people succeed financially. Our credit card is designed with no fees (variable APRs range from 15.24-26.24%), no financial traps and doesn’t require you to have had any prior experience with credit. Our goal is to help Americans everywhere start building credit. Tens of millions of Americans have no credit score at all, and millions more have short credit histories that may not tell the whole story.”