BMG Money, a Miami-based fintech specialising in loans and financial wellness tools for thin-file employees, has landed a forward flow agreement of up to $360 million with Hudson Cove Capital Management.
Through the agreement, Hudson Cove will purchase loans issued by WebBank through BMG Money’s lending platform. The alternative credit asset manager has previously provided similar debt packages for fintech lenders Kafene and Propel.
BMG Money’s lending platform provides emergency loans and instant funding options of up to $12,000 to public and private sector employees in the US, with a focus on serving individuals who may not be able to access more traditional credit options.
For this reason, BMG Money does not consider FICO scores in the credit application process; instead, it bases loan approvals on employment history, employer stability, and income. Loans are then repaid through payroll deductions.
The company, launched in 2011, provides loans to employees in Illinois, Ohio, and Rhode Island through its direct lending subsidiary, BMG LoansAtWork Inc, while the partnership announced with WebBank in August 2024 expanded this scope to 42 states and the District of Columbia.
Speaking to FinTech Futures, BMG Money CFO Dan Seguine says the funding agreement with Hudson Cove will allow the company to “efficiently deploy additional capital to more overlooked consumers across the US”.
The former Bank of America director claims BMG Money continues to “grow and expand rapidly”, adding that “very soon, we anticipate closing the next step of our strategic plan to ensure diversified, long-term capital sources”.
Once closed, Seguine says these additional sources will be used to “support the expansion of our balance sheet and on-going evolution of our data-driven consumer credit platform”.
The company has so far reached over 200,000 borrowers through its network of 100+ employer partners, distributing approximately $4 billion in affordable loans to date.
Source: https://www.fintechfutures.com/
