A company that offers consumers credit to pay over time for unexpected expenses like medical bills, auto repairs, and veterinarian bills has closed a deal for access to $250 million in credit that will be used to fund more transactions for consumers to continue the platform’s growth. The operation could be seen as a competitor to healthcare providers and other companies placing accounts with collection agencies while also being used as a tool by collectors to create payment plans for consumers who want to take care of unpaid debts.
Called Sunbit, the platform claims to approve 90% of applicants with “fair, transparent” interest rates, no late fees, no origination fees, and no penalties. The company is currently working with 16,000 merchants nationwide, and trains those companies “to ensure service advisors, patient coordinators, office managers, and retail associates feel confident offering Sunbit to every customer,” according to the company’s website. It aims to provide Buy Now, Pay Later functionality to areas where it has not traditionally been made available.
The Sunbit card offers a mobile app that consumers can use to manage their accounts and apply for credit and the company says it wants to help merchants expand their businesses and help consumers pay for non-disrectionary expenses. “Today it is clearer than ever that Americans require access to better options for how they pay for the things they need,” said Arad Levertov, the chief executive of Sunbit, in a statement.
Sector Financial, a unit of Credit Suisse, and Waterfall Access Management are providing the credit to Sunbit, which was valued at $1.1 billion last year after raising $130 million in Series D financing.
