Sunbit Closes $310M Debt Warehouse Facility with Citi and Ares Management

Rhea-AI Summary

Sunbit, a financial technology company, secured a $310 million debt warehouse facility to support growing consumer demand for its Buy Now, Pay Later solution and Sunbit Card. The facility was led by Citi and Ares Management Credit funds. The company has achieved rapid growth, serving over 2.6 million loan customers with over $1 billion in merchant transaction volume. Sunbit is the leader in BNPL financing in the automotive services sector, serving customers of approximately 40% of the franchise dealerships in the U.S. and is one of the fastest-growing companies serving the dental market. The no-fee Sunbit Card was used for nearly $340 million in purchases by over 110,000 consumers in 12 months. The company has a strong focus on offering inclusive and personalized financing choices, with an average 90% approval rate and no fees charged. Sunbit's financial performance and strong underwriting led to the facility from Citi and Ares, despite ongoing macro headwinds and caution prevalent in the capital markets.

Insights

Financial Analyst

The closing of a $310 million debt warehouse facility by Sunbit, particularly with the involvement of prominent financial institutions like Citi and Ares Management, signifies a robust vote of confidence in Sunbit's financial health and business model. The facility is likely to bolster the company's liquidity and enable it to scale its operations to meet increasing consumer demand. The Buy Now, Pay Later (BNPL) market is a rapidly growing segment within the fintech industry and Sunbit's high approval rate and fee-free structure position it competitively. Investors should note the company's strategic focus on sectors like automotive services and dentistry, where it has achieved significant market penetration, which could forecast sustained growth and potentially enhance shareholder value.

Market Research Analyst

Sunbit's integration into SaaS platforms and its high rate of customer retention underscore its strong market position and user experience. The BNPL sector is witnessing an increasing preference among consumers for flexible and transparent financing options, which Sunbit appears to capitalize on. The company's technology-driven approach and the expansion of its Sunbit Card indicate innovation and adaptability, factors critical to maintaining competitive edge. Market trends suggest that Sunbit's growth trajectory could continue, especially given the company's performance amidst macroeconomic headwinds. This could suggest a positive outlook for stakeholders evaluating the company's long-term market strategy and potential for expansion.

Economist

Despite the current economic climate, characterized by uncertainty and cautious capital markets, Sunbit's successful negotiation of a substantial debt facility indicates resilience and a solid operational foundation. The company's strategic decisions and financial performance, even against macroeconomic challenges, provide insights into the broader fintech sector's dynamics. The BNPL model, as adopted by Sunbit, reflects a shift in consumer credit preferences, which may have wider implications for consumer spending patterns and credit markets. The company's growth in specific vertical markets also suggests a targeted approach to consumer finance that may influence broader credit accessibility and financial inclusivity.

Award-winning financial technology company leading transformation in key markets; debt warehouse facility to extend footprint and support ever-growing consumer demand

LOS ANGELES--(BUSINESS WIRE)-- Sunbit, the company building financial technology for everyday expenses, announced today that it closed a $310 million debt warehouse facility led by Citi and Ares Management Credit funds. Established in 2016 to transform how consumers access, use and benefit from credit, Sunbit will leverage the funds to meet ever-increasing consumer demand for the company’s market-dominant Buy Now, Pay Later (BNPL) solution and the next-gen, no-fee Sunbit Card.

Sunbit Closes $310M Debt Warehouse Facility with Citi and Ares Management (Graphic: Business Wire)

Arad Levertov, CEO of Sunbit, said, “Today, millions of people choose Sunbit to manage their everyday needs and so much more. By offering virtually everyone a more transparent and fair alternative to what is currently in their wallet, we attract customers for life. We take this trust seriously. Regardless of what markets we enter or what products we offer, every major decision will be tested against what matters most: how many customers we’re reaching, whether they come back to Sunbit, and how their experiences were. We thank Citi and Ares for their support in arranging this facility.”

Jeffrey Kramer, Partner in the Ares Credit Group, commented, “We are excited to be partnering with the Sunbit management team as they continue to grow their technology-driven consumer finance platform. This transaction is another example of Ares’ ability to provide a scaled and flexible financing solution to help a company such as Sunbit achieve its strategic objectives.”

Repeatedly recognized for sustained and rapid business growth, Sunbit’s commitment to offering consumers access to best-in-class inclusive and personalized financing choices remains steady with an average 90% approval rate, without charging fees of any kind. As of the end of 2023, Sunbit supported over 2.6 million loan customers with over $1 billion per year in merchant transaction volume.

Sunbit is the leader in BNPL financing in the automotive services sector, serving customers of approximately 40% of the franchise dealerships in the U.S.¹, and is one of the fastest-growing companies serving the dental market². In addition, Sunbit’s BNPL financing technology has been directly integrated into more than 15 SaaS vertical platforms, extending adoption and accessibility.

Consumers consistently select Sunbit BNPL technology when given the choice, and more than 1 in 3 become repeat customers.

By late 2023, the invite-only, next-gen, no-fee Sunbit Card was used for nearly $340 million in purchases by more than 110,000 consumers in 12 months and experienced high customer engagement.

James Paris, Chief Capital Officer of Sunbit, said, “This facility from Citi and Ares is a testament to our strong underwriting and financial performance, especially over the past several years, as well as our outstanding and unwavering focus. Even with ongoing macro headwinds and caution prevalent in the capital markets, it is exciting to see the consistent execution and strong momentum here at Sunbit, today and beyond.”

¹ https://www.nada.org/nada/research-and-data/nada-data
² https://www.beckersdental.com/dentists/41935-meet-the-leaders-of-the-top-5-fastest-growing-dental-companies.html

About Sunbit

Sunbit builds financial technology for real life. Our technology eases the stress of paying for life's expenses by giving people more options on how and when they pay. Sunbit offers access to a no-fee credit card that can be managed through a powerful mobile app, as well as a BNPL option available at more than 23,000 service locations, including auto dealership service centers, optical practices, dentist offices, veterinary clinics, and specialty healthcare services. Sunbit is a 2-time Inc. 5000 honoree and the company has been also named a Most Loved Workplace®, Best Point of Sale Company, a Deloitte Technology Fast 500 company, and a top 5 company on the LABJ Fastest Growing Companies List. Loans are made by Transportation Alliance Bank, Inc., dba TAB Bank, which determines qualifications for and terms of credit. The Sunbit Card is issued by TAB Bank, pursuant to a license from Visa U.S.A. Inc. Use of the card is subject to the cardholder agreement.

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About Ares Management Corporation

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of September 30, 2023, Ares Management Corporation’s global platform had approximately $395 billion of assets under management, with approximately 2,800 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240123923344/en/

Bridget Stasonis

bridget.stasonis@sunbit.com

Source: Sunbit

FAQ

What is the amount of the debt warehouse facility secured by Sunbit?

Sunbit secured a $310 million debt warehouse facility.

Who led the debt warehouse facility for Sunbit?

The facility was led by Citi and Ares Management Credit funds.

How many loan customers has Sunbit supported?

Sunbit has supported over 2.6 million loan customers.

What is the average approval rate for Sunbit's financing choices?

Sunbit has an average 90% approval rate for its financing choices.

What is the transaction volume supported by Sunbit?

Sunbit supported over $1 billion per year in merchant transaction volume.

What is the primary focus of Sunbit?

Sunbit focuses on offering inclusive and personalized financing choices.

What is the usage of the no-fee Sunbit Card?

The no-fee Sunbit Card was used for nearly $340 million in purchases by over 110,000 consumers in 12 months.

Who is the Chief Capital Officer of Sunbit?

James Paris is the Chief Capital Officer of Sunbit.