Neobank Dave Amends Credit Facility to Increase Capacity, Advance Rate, Reduce Cost of Funds, Extend Maturity

Dave Inc. (Nasdaq: DAVE), one of the nation’s neobanks, has amended its existing Delayed Draw Senior Secured Loan Facility with Victory Park Capital Advisors, LLC, effective September 13, 2023.

The amendment to the Credit Facility accomplishes the following:

  • Increases the total size by $50 million to $150 million;
  • Increases the advance rate by over 800 basis points based on the $75 million outstanding balance on the Credit Facility as of June 30, 2023;
  • Reduces cost of funds by nearly 200 basis points based on the outstanding balance as of June 30, 2023; and
  • Extends the maturity by approximately two years to December 15, 2026.

Jason Wilk, Founder and CEO of Dave, said:

“This amendment to our credit facility provides Dave with more leverage, more capacity, and more term at a lower cost which will further support our growth objectives as well as our liquidity position. In light of the higher interest rate environment and tighter capital markets conditions, securing this amendment to the credit facility speaks volumes about the strength of our business and unit economics. I want to thank VPC for their long-term partnership and for providing us with additional capital to continue serving the banking needs of our growing member base.”

Jason Brown, Partner at VPC, said:

“We are proud of our long-standing relationship with Dave and look forward to continuing our partnership with the extension of this credit facility.” 

As covered, Dave claims it is “a leading U.S. neobank and fintech pioneer serving millions of everyday Americans.”

Dave says that it “uses disruptive technologies to provide best-in-class banking services at a fraction of the price of incumbents.” Dave reportedly partners “with Evolve Bank & Trust, member FDIC.”

As noted in the update, VPC is an SEC-registered, “established credit manager.”

The firm was founded in 2007 and is “headquartered in Chicago, Illinois, with additional resources in New York, Los Angeles, San Francisco, and London.”

VPC says that it “provides custom financing solutions across the private capital spectrum, focusing on companies with strong corporate governance and a compelling growth trajectory. VPC invests in emerging and established businesses across various industries worldwide.”

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