Sunbit closes a USD 310 million debt warehouse facility

The company, founded in 2016 with a mission to transform how consumers access, use, and benefit from credit, plans to utilise the funds to address the growing consumer demand for its Buy Now, Pay Later (BNPL) solution and the no-fee Sunbit Card.

In the company press release, officials from Sunbit expressed gratitude to Citi and Ares for their support in facilitating this financing. They also talked about the company's commitment to providing a transparent and fair alternative to consumers, stating that every major decision will be tested against key metrics, including customer reach, retention, and overall experiences.

In turn, officials from Ares Credit Group highlighted the company's willingness to partner with Sunbit in order to support a scalable and flexible financing solution to support future strategic goals. The press release further details that Sunbit holds a prominent position in the BNPL financing market within the automotive services sector, serving approximately 40% of franchise dealerships in the US. Sunbit is also a rapidly growing player in the dental market and has integrated its BNPL financing technology into more than 15 SaaS vertical platforms.

The company's invite-only, no-fee Sunbit Card, introduced in late 2023, recorded nearly USD 340 million in purchases by over 110,000 consumers in a year, showcasing high customer engagement. Representatives from Sunbit see the facility from Citi and Ares as a testament to the company's strong underwriting and financial performance, especially in the face of ongoing macro headwinds and market caution.

What else has been going on with Sunbit? 

Sunbit provides a next-generation no-fee credit card that can be managed through a mobile app and as a point-of-sale payment option available at over 19,000 service locations, including auto dealership service centres, optical practices, dentist offices, veterinary clinics, and speciality healthcare services.

In May 2023, US-based fintech Everyware partnered with Sunbit to make the Pay-Over-Time integration available in Pay By Text form for convenient, quick, and safe payment processing. The solution aimed to enable an increased number of companies to successfully sell their products and services to customers who might otherwise not choose to or be able to pay for everything at once.