London-based fintech loan provider Creditspring has raised £48m to ramp up its money lending services amid the cost of living crisis.
The company said the new funds will go towards increasing its lending capacity to meet the increased demand for loans as both inflation and daily costs continue to rise for UK consumers.
Creditspring has said it expects to loan £100m to members this year, a £75m increase from last year.
The projections come from the firm’s financial stability tracker, which found that in the coming months one in six adults in the UK will need to borrow money.
The tracker also found that around 30% of adults in the UK were “terrified” for their financial future.
‘A perfect hunting ground for predatory lenders’
Creditspring’s on-demand loans are interest-free, however, the company only pays them out to registered members who are charged a fixed membership fee.
“The significant growth in our customer numbers over the past six months highlights just how many people in the UK are in need of additional financial support,” said Neil Kadagathur, co-founder and chief executive of Creditspring.
“As people increasingly turn to borrowing to survive the cost-of-living crisis, it creates a perfect hunting ground for predatory lenders which do not have the best interests of their customers at heart.
“We must do all we can to help people reduce their chances of falling into unmanageable debt – never has this been more important than it is today.
“This fundraise allows us to deliver on our mission to help people across the UK build their financial stability with access to affordable credit and practical guidance.”
In addition to ramping up the firm’s loaning capabilities, the new funds will go towards a significant expansion of the company’s workforce. Creditspring plans to double the number of employees by the end of the year, starting with a target of 30 new team members being brought on this quarter.