Petal closes $220m in debt to expand credit card program
By Delisha Fernandes
Petal, a credit card and FinTech company, has closed a $200 million debt facility from Victory Park Capital (VPC), a global alternative investment firm specializing in private credit.
Petal has also agreed to a multi-year extension of its existing term loan facilities and closed a new term loan facility for up to $20 million of incremental commitments with Trinity Capital (Trinity), a provider of diversified financial solutions growth-stage companies.
These new sources of capital provide Petal with substantial fuel to expand the Petal credit card program, which provides access to high-quality Visa credit cards (issued by WebBank) to new-to-credit consumers without requiring established credit scores to qualify.
“It will soon be possible for any US consumer to use their banking history to qualify for new and better financial services,” said Jason Rosen, CEO and Co-Founder Petal. “That’s great for consumers and an opportunity for Petal to make credit accessible to millions who have been overlooked and underserved for too long. We thank Victory Park Capital, Trinity and our existing investors, whose support will be crucial to our growth in this next chapter.”
Petal provides access to credit cards that don’t require a credit score via a transformative approach to assessing creditworthiness called cash flow underwriting. This approach enables individuals to use their banking history to qualify for credit and establish a credit history, making credit more accessible to millions of US consumers without credit histories or whose traditional credit scores provide a limited view of their financial status and creditworthiness.
“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. “We look forward to partnering with the Petal team as they work to expand the credit card program and serve even more underbanked consumers.”
With this new funding, Petal has raised over $300 million in debt financing and more than $680 million in debt financing.
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September 29, 2023