Upgrade Inc. closed its first securitization of $282 million of personal loans to almost  20 banks and asset managers.

This transaction inaugurates Upgrade's securitization program, designed as a quarterly issuance program. Credit Suisse and Jefferies acted as joint lead underwriters, and Upgrade served as sponsor, servicer and administrator for the transaction. Upgrade has raised $142 million in equity capital and facilitated over $1 billion in loans since launch in April last year.

“Our securitization program is designed to provide liquidity and a lower cost of funds to our loan buyers through a standardized issuance program," said Renaud Laplanche, co-founder and CEO of Upgrade. "We believe this securitization program is the ideal complement to our marketplace approach whereby banks and asset managers can buy consumer loans and personal credit line balances on an on-going basis."

Upgrade is securitizing receivables from its Personal Credit Line product.

Through Credit Line, consumers are approved for up to $50,000 and can request an advance on the line when they need it, subject to credit approval. Borrowers gain the flexibility to access funds when they need them, and the predictability of a fixed rate and equal monthly payments. Credit Lines can be used like a home equity line of credit—though consumers can obtain approval for a Personal Credit Line in a matter of minutes without collateral or an appraisal process.

Similar to an installment loan, each advance has a fixed rate and term, making it easy to budget for monthly payments. There is no fee to open the line and no fee to use the line. Customers are only charged interest on the amount they use, and the funds are deposited directly into their bank account. Payment terms will vary from 12 to 60 months.