Costa Mesa CA based online lender Payoff has raised $46.7M as part of a round expected to close at $67.4M. The company had previously raised $38.4M from FirstMark Capital, Great Oaks Venture Capital, and Anthemis Group. Payoff is focused on helping millienials refinance their credit card debt. Its loans are backed by $250M in debt financing provided by Eaglewood Capital Management.
Payoff targets millennials seemingly, with 10-minute-long quizzes to help users understand their financial “personality,” understand what their overall financial picture looks like, and assess how much finance-related stress is impacting them. The company got a lot of mileage particularly out of a recent study it conducted that showed 23 percent of 2,011 survey respondents were experiencing symptoms commonly associated with post-traumatic stress disorder related to their finances. Among millennials, said Payoff, the number is 36 percent. Beyond its content, Payoff provides loan amounts of between $5,000 and $35,000, between two- and five-year-long terms, and for fixed rates of between 8 percent and 22 percent APR. Borrowers also are charged a one-time 2 percent to 5 percent fee when their loan is issued.