Salad Money gets £40m debt facility to offer loans to key workers #
Salad Money, a fintech company that offers credit services to employees of the National Health Service and the public sector, has signed a £40 million loan agreement with an American investor.
The modest lending programme is available through the London-based firm to essential workers. Salad Money claims that applicants with poor credit histories are not at a disadvantage because the application process, which uses open banking technology to determine an applicant’s repayment potential, does not put them at a disadvantage.
Around half of Salad Money’s borrowers have a family income between £12,000 and £24,000. According to the company, the credit rating of many of these customers may be a reason for rejecting them from more traditional lenders.
According to Salad Money’s CFO, this new credit facility brings our total senior debt capital to £50 million, giving the company the financial ability to help more NHS and public sector workers avoid high-cost borrowing.
The company is connected to Responsible Finance, an advocate for the community finance industry that works to get more money for alternative credit products for people who can’t get traditional bank loans.
The CEO of Responsible Finance, Theodora Hajimichael, says that this historic agreement will help the NHS and public sector workers who need and can pay back loans but don’t have a fair choice.
The corporation did not disclose which U.S. loan fund was responsible for the debt.