A Richmond-based financial firm has caught the attention of outside investors looking to tap into the growing consumer financing.
West Creek Financial announced Tuesday that Chicago-based Victory Park Capital has floated the firm a revolving credit line of $25 million to dole out to new consumers.
The capital infusion from Victory comes as West Creek Financial completed a successful $3.5 million capital raise in late June from institutional and angel investors.
Boomer Muth, CEO and co-founder of West Creek Financial, said the $3 million in capital raise will be used for West Creek administrative and operational costs. He said the $25 million in credit from Victory will strictly be used on “leases” for retailers that sell items such as furniture, mattresses and appliances to consumers.
“We have 90-day payment options for people with FICO scores all over the place,” Muth said. “People will apply through our online portal, and get a real-time decision at that time.”
As part of the agreement to pay back Victory, Muth said his firm will pay the interest amount on the $25 million to be spent.
With $25 million in credit in the bank, Muth said the company, founded in June 2014 by Muth and two unnamed partners, is beginning to catch its stride.
“This is an exciting time for us,” Muth said. “This credit has really given us confidence as a firm, and we expect that growth to continue.”