Propel Holdings Inc., announced a US $60 million forward flow purchase agreement with funds managed by Mesirow Alternative Credit. Under the Agreement, Mesirow will purchase receivables originated through Freshline. Freshline is a new product set to launch in Q1 that will bring unsecured personal loans to a new customer segment of the underserved market and additional geographies not currently served by Propel. Freshline is provided by Column N.A.
Under the forward flow Agreement, Propel will provide the technology, underwriting, and servicing of the loans with Mesirow purchasing the loans. The forward flow structure enables Propel to access diversified and committed sources capital.
“This commitment from Mesirow reflects confidence in Propel’s platform from one of North America’s leading private credit investors,” said Clive Kinross, Chief Executive Officer of Propel Holdings. “Freshline allows us to serve more consumers across the credit spectrum while leveraging our proven underwriting and servicing capabilities. This commitment from Mesirow provides capital to scale efficiently, accelerate our U.S. expansion, and drive sustainable revenue growth.”
“Propel’s stellar track record in underserved consumer credit and its scalable, AI-powered platform make it a compelling partner,” said Tim Reimink, Senior Managing Director, Head of Asset Management, Mesirow Alternative Credit. . “This forward flow investment provides our investors exposure to a leading consumer lending platform, disciplined operators and meaningful growth potential.”
This Agreement further diversifies Propel’s capital base and reinforces the Company’s ability to attract institutional capital to its innovative consumer credit products.
Source: Propel