Sydney fintech startup, zipMoney, has secured $100 million in asset-backed securities from US fund Victory Park Capital (VPC), which it will use to challenge major lenders.

Larry Diamond, zipMoney CEO, said the credit facility provides the resources to compete with lenders that provide finance for major retail brands.

“This $100 million credit facility will let zipMoney compete against the big incumbents such as Flexigroup and GE Capital, who provide customer loan services to the likes of Harvey Norman,” Diamond said.

ZipMoney is currently offered by more than 200 retailers. Customers can apply for zipMoney loans of $1000 or $2000 to purchase products from retail partners and be approved on their mobile phone or computer, either in the physical shop or online checkout.

The startup said it has hundreds of small to medium-sized retailers on its books in Australia, but is now ready to target larger chains.

“Australian companies like Kitten D’Amour and Reid Cycles have reported an increase in sales of up to 20 per cent thanks to zipMoney, and high customer satisfaction with the experience,” Diamond said.

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