Petal, a Fintech in the credit card sector, has received a $200 million debt facility from Victory Park Capital (VPC). At the same time, Petal states that it has agreed to an extension of an existing term loan as well as a new loan of up to $20 million from Trinity Capital.
Petal has raised more than $20 million in new equity financing from its existing investors, building on the $35 million in funding Petal announced in May.
Petal is a credit card company that created cash flow underwriting as an alternative to traditional credit scores. The goal is to make credit more accessible.
The additional funding will help provide credit for individuals who are “new to credit.”
“VPC is a strong supporter of Petal’s mission to make responsible, modern financial services available to everyone,” said Jason Brown, Partner at Victory Park Capital.
Petal notes that the Federal Reserve’s Center for Microeconomic Data released data indicating that the rejection rate for credit applicants is at the highest level since 2018 – and worse for those with credit scores below 680.
A majority of consumers approved for Petal credit cards had either thin or no credit history when they were first approved.
