Prediction Not checkable as stated
Burnside predicts LendingPoint will reach $120M in net profit in 2022
“We're making money. We'll, we'll make a hundred plus this year. A hundred million net. Yeah. A hundred, a 120.”
Disclosure
Burnside: LendingPoint raised an unprecedented $220M in friends and family rounds
“The team we have here raised about two hundred and twenty million dollars of friends and family just really no outside rounds, but friends and family, we raised that over, Yeah. Over about probably four or five different tranches that we re-raced it, but we di…”
Prediction Not publicly verifiable
Burnside projects LendingPoint will hit $600M in net revenue for 2022
“And we'll be around six hundred million this year.”
Insight
Burnside: True debt pricing scale requires $500M in annual loan originations
“I mean, it wasn't until you really cross over a half a billion dollars of originations a year. Until pricing really starts to come of real scale.”
Assertion Not publicly verifiable
Burnside: LendingPoint loan originations reached $2.1B in 2021
“We grew a 144% year over year, 20 to 21. ... We went to 2.1 billion And 21 which is a, you know, a huge you know, a huge growth, but we slowed down a little bit during COVID in 2020. But then we had, you know, just significance would close a little under a bil…”
Assertion Not publicly verifiable
Burnside: LendingPoint generated $330M in net revenue in 2021
“Here in 2021, we were at about three hundred and thirty million. ... This is basically, this is our net revenue, right?”
Assertion Not checkable as stated
Burnside: LendingPoint can reach at least $1.5B in debt capacity
“We can easily get to a billion to 1,000,000,005 with what we have right now. It's a combination of warehouses, ABSs, forward flows, you know, bank commitments, things of that sort that make that happen. But you know, we know we can get to at least a 1,000,000,…”
Disclosure
Burnside: LendingPoint Reinvested All Raised Capital and Took Zero Secondary
“So that money keeps going back into the organization and we have taken no secondary. We have poured all the money back into the company to keep the copy growing.”
Disclosure
LendingPoint funds credit scores from 550 to 850
“You know, today we fund all, you know, all credit bands from, you know, from five 50 all the way up to eight 50.”
Disclosure
Burnside: LendingPoint started with a ~10% cost of funds
“We started off at around a 10% cost of funds on our own.”
Disclosure
Burnside: LendingPoint yielded 1% warrant coverage for early debt facilities
“I think we gave up a one percent in the first year to get a, to get some of the good deals.”
Disclosure
Burnside: LendingPoint's first institutional raise did not happen until 2020
“Our first institutional raise didn't actually happen until 2020.”
Insight
Burnside: 36-month consumer loans typically pay off in 16 to 18 months
“The weighted average life of an asset, even though you write it for 24, 36 months, you know, people end up paying it off in 18 months, or they pay it off in 16 months.”
Insight
Burnside: 60% of Loan Losses Occur in the First Six Months
“In the first six months, you'll see about 60% of your losses on a vintage analysis curve.”
Assertion Supported
Burnside: LendingPoint crossed $500M in annual originations in 2019
“We hit that in twenty-nineteen.”
Assertion Not checkable as stated
LendingPoint: 25% to 30% of customer base comes from renewals
“Right now about 25 to 30% of our base runs in renewals, just renewals alone.”
Assertion Not checkable as stated
LendingPoint has roughly 300,000 active borrowers and 450,000 total customers
“We're a little over 300, right, right at 300 and we've serviced about four 50 in total.”
Assertion Not checkable as stated
LendingPoint's average transaction size increased from $5,000 to $11,000
“And the average transaction today is about 11,000, right? So it's moved from the 5000 days to about 11,000 today.”
Disclosure
Burnside: LendingPoint acquired a POS firm for 7-to-10-year loans
“Well, we bought a point of sale company, and so things moved, changed a little bit when we bought the point of sale. We bought the point of sale company we were able to move to seven and 10 year paper for home improvement. So we're in the home improvement spac…”
Disclosure
LendingPoint offers consumer loans up to $50,000
“Now that that market goes all the way up to 50,000.”
Disclosure
Burnside: LendingPoint Uses Five Risk Buckets and 400 Pricing Points
“And we have about five different buckets of credit grades or risk, right? And we, but we now are up to 400 different pricing points with inside of those grids.”
Disclosure
Burnside: LendingPoint's Early Loans Carried 20% to 23% Rates Over 3-4 Years
“Typically the average price back in the back of those days was about 20 to 23% weighted average coupon, if you think about it in that particular way. And it was typically over three to four years is what we were doing.”
