Congrats to David Klein and the team at CommonBond for securing a $275m warehouse line from Macquarie and Barclays. With the new loan capacity CommonBond is expecting to issue more than $1b in loans during 2016.
The online lending market continues to generate heat in the financial services sector as student lending service CommonBond rakes in another $275 million in available lending capital. Through the deal announced earlier today, Macquarie Capital, Barclays, and other, undisclosed, financial investors, are providing CommonBond with a line of credit called a “warehouse line”, which CommonBond will use to provide loans to its student borrowers. Warehouse lines of credit were initially issued against the goods in a warehouse so that borrowers could use their available supplies as collateral against the loan. Over time, the term evolved (especially in the housing industry) to refer to a loan that was made and would be repaid as it was securitized and bundled into a broader loan portfolio that is sold in the secondary market.