DALLAS–(BUSINESS WIRE)–Highline Applied sciences, the funds fintech that unlocks payroll-linked lending and billpay, introduced immediately that it has efficiently raised $13 million in Sequence A funding. The spherical was led by Soar Capital, Costanoa Ventures, Basis Capital and different traders.
Based in 2020, Highline’s funds platform permits shoppers to simply automate invoice funds straight from their paycheck, serving to to keep away from missed funds and overdraft charges. Highline’s answer permits shopper lenders to enhance portfolio efficiency, permitting them to increase approvals, attain extra potential clients and develop income whereas decreasing danger. Moreover, Highline extends payroll-linked lending to any asset class, the place traditionally it was restricted to solely private loans.
After receiving seed funding in 2021, Highline has continued rising at a speedy tempo, doubling its staff over the primary half of 2022 alone. Throughout the previous yr, Highline accomplished the construct of its platform and launched early shoppers within the private mortgage, lease-to-own, retail and bank card industries. The Sequence A funding will help Highline’s continued development, together with additions to workers, extra strategic partnership alternatives and expanded market adoption of its services and products.
“When talking to lenders, we heard a constant chorus – they have been all conscious that connecting to debtors’ payroll would drastically scale back defaults and materially enhance their aggressive positions,” shared Yelena Shkolnik, Associate at Soar Capital. “Most had tried and didn’t leverage deductions, challenged to compliantly handle the funds circulate, or supply satisfactory employer protection. In Highline, lenders have the answer they’ve looked for and a strong finish buyer expertise to rework their lending.”
“It has been a few years, many years arguably, since U.S. shopper lending has seen an innovation of this magnitude,” stated Zach Noorani, Associate at Basis Capital. “By way of Highline’s cost platform, tens of thousands and thousands of non-prime shoppers will ultimately be capable to entry prime-priced monetary merchandise. That’s a whole bunch of billions a yr in potential financial savings.”
Payroll-linked lending advantages lenders and shoppers alike because it helps scale back missed funds by as much as 2/3rds in comparison with conventional cost strategies and might decrease default charges by greater than half. Automating mortgage funds by way of payroll linking improves a shopper’s creditworthiness by the equal of 80 to 100 FICO factors. It permits lenders to make higher, extra knowledgeable choices based mostly on a borrower’s true skill to pay and permits them to increase credit score to many shoppers usually shut out of conventional monetary companies.
“We’re grateful to our traders and excited by the probabilities that this spherical of funding represents,” stated Geoff Brown, Co-founder and CEO of Highline. “It can allow us to proceed constructing a world-class staff and join with a rising variety of clients and companions all through the business who’re equally dedicated to offering extra debtors with entry to the credit score and banking companies they deserve.”
About Highline
Highline is a brand new funds platform that automates invoice funds straight from payroll. It supplies lenders with a easy, direct strategy to credit score decisioning and cost automation that may be supported at scale. Lenders can lower missed funds by as much as 2/3rds, scale back default charges by greater than half, increase clients’ credit score choices, and higher help monetary wellness. Constructed by material specialists, knowledge scientists and technologists, Highline’s answer unleashes the ability of cost automation to assist lenders and monetary establishments increase the pool of potential debtors. For extra data, please go to https://highline.co/.
