Sunbit raises $250M Debt Facility

After getting a $250 million investment, financial technology company Sunbit is now aiming to expand its reach, as buy-now, pay-later services, and other innovative payment choices gain more popularity among consumers..

“Today it is clearer than ever that Americans require access to better options for how they pay for the things they need,” Sunbit CEO Arad Levertov expressed in a news release. “We’re committed to helping more merchants build their businesses and consumers pay for non-discretionary expenses.”

The company claims that the debt facility expands the sources of its funding and helps it expand its point-of-sale loan programs and Sunbit card. According to the press announcement, Sunbit will use the financing facility to expand its distribution network and serve the millions of Americans who require fair financial access to basic needs.

The nation’s dental practices are among the businesses flocking to Sunbit for financing, the company said last month. With more than 500 new offices opening each month, Sunbit technology is used in more than 6,000 dental offices and more than 550 dental support organizations (DSOs).

According to Jay Letwat, vice president of dental at Sunbit, there is a demand for such a service because millions of Americans are forced to decide between forgoing necessary care or paying out-of-pocket for unforeseen dental bills.

“Even patients with private dental insurance face coverage caps, which all but guarantee that any significant treatment will require a hefty out-of-pocket cost as well,” Letwat said.

According to recent study, 52% of consumers experimented with a new payment method in 2017. According to the research, digital wallets are the primary winners in this situation because 59% of consumers who adopted new payment methods started with this choice. A closer look reveals that approximately 53% of respondents use credit, debit, or store cards, while 11% also experiment with BNPL.

Dig even deeper, “and it becomes apparent that the consumers most firmly entrenched in the paycheck-to-paycheck economy — which represents more than 60% of us here in the United States — are the ones utilizing BNPL and cards,” the researchers noted.

More than half of respondents with incomes under $100,000 used those payment channels, and 11% leveraged BNPL, according to the research report.

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