MUFG Secures $75 Million Financing to Empower EarnIn's Growth
MUFG Secures $75 Million Financing for EarnIn
The senior secured revolving facility, with MUFG as Sole Lender, will fuel EarnIn's growth and expansion into innovative products, including Live Pay.
Overview of the Financing
Mitsubishi UFJ Financial Group (MUFG), recognized as one of the top global financial organizations, has successfully closed a $75 million senior secured revolving credit facility for Activehours, Inc. d/b/a EarnIn. This partnership aims to enhance the financial capabilities of EarnIn, a well-established earnings management platform.
Purpose of the Facility
This facility has been strategically designed by MUFG to offer flexible and scalable capital, empowering EarnIn to broaden its product offerings. The financing will specifically support:
- Live Pay, a cutting-edge technology allowing workers to stream their earnings in real time, with an ability to access up to $1,500 per pay period.
- Early Pay, enabling workers to access their earned paychecks up to two days prior to the regular payday, irrespective of their banking institutions.
- Cash Out, a feature permitting employees to withdraw a portion of their earned wages ahead of the scheduled payday.
Statements from Executives
Jacopo Lenzi, the Chief Financial Officer at EarnIn, expressed, "This facility gives EarnIn greater flexibility to meet the growing demand for streaming pay. We appreciate MUFG's partnership in structuring a solution that aligns with our long-term vision. Their expertise will aid us in expanding real-time access to earnings for more individuals."
Arthur Ng, Managing Director in MUFG's Growth and Middle Market Technology team, shared, "Our alignment with EarnIn emphasizes MUFG's unwavering commitment to delivering financial innovations responsive to rising consumer needs. We are eager to support EarnIn in its ongoing mission to enhance financial wellness for a large workforce."
About MUFG
Mitsubishi UFJ Financial Group, Inc. (MUFG), established over 360 years ago, stands as one of the premier financial groups globally. With its headquarters located in Tokyo, the group operates approximately 2,100 locations across over 50 countries. Boasting around 160,000 employees, MUFG provides a broad spectrum of services, including commercial and trust banking, securities, credit operations, asset management, and leasing. The organization's mission is to be recognized as "the world's most trusted financial group," ensuring a responsive approach to the diverse financial needs of its clientele, thereby nurturing societal welfare and promoting sustainable growth.
About EarnIn
EarnIn operates as an innovative earnings management company, dedicated to constructing a more equitable financial landscape for individuals overlooked by conventional financial systems. With services ranging from on-demand earnings to early paycheck access, along with credit-building tools and real-time pay options, EarnIn empowers its users to gain control over their finances without incurring interest, hidden fees, or undergoing credit checks. Importantly, EarnIn positions itself as a fintech rather than a banking entity, with banking services facilitated through Evolve Bank & Trust and Lead Bank, both FDIC-insured institutions.
Frequently Asked Questions
What is the purpose of the $75 million financing from MUFG?
The financing aims to provide EarnIn with the necessary capital to expand its innovative financial products and services, promoting financial wellness for users.
Which services will EarnIn offer with the new funding?
EarnIn plans to enhance services like Live Pay, Early Pay, and Cash Out, which allow workers to access their earnings in real-time and earlier than payday.
Who is Jacopo Lenzi?
Jacopo Lenzi is the Chief Financial Officer at EarnIn and plays a key role in steering the company towards achieving its financial growth goals.
How does MUFG support companies like EarnIn?
MUFG provides financial solutions tailored to innovative companies, demonstrating a commitment to fostering advancements in the financial services sector.
What is the significance of EarnIn in today's financial landscape?
EarnIn focuses on offering equitable financial solutions to those underserved by traditional banks, enabling individuals to manage their funds more effectively.
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