Think Finance, a company that helps serve the banking needs of the “unbanked”, has secured a $90 million credit facility from Victory Park Capital Advisors. The company, which is profitable and has raised $60 million in VC funding from Sequoia and other investors, will use this line of credit to fund expansion of its existing banking products and work to develop new financial tools.
According to Think Finance CEO Ken Rees, there are 60 million “unbanked,” individuals in the U.S., which designate consumers who don’t have traditional bank accounts or cannot qualify for credit cards. Think Finance provides this population with pre-paid debit cards, online installment loans, financial literacy tools, and more. The company has served more than 1 million customers through its existing products.
For example, the company offers ThinkCash, an online installment loan that rewards customers for making timely payments and helps them to build a better credit profile. The company is also beta testing its latest product, Elastic, which blends a prepaid debit card with a flexible emergency cash line of credit.
Think Finance also licenses its products to traditional banks, such as the First Bank of Delaware, so that these institutions can offer products for individuals who are “unbanked.” Think Finance takes a revenue share from these partnerships.