Climb secures $50 million debt facility from Goldman Sachs
Climb Credit is a fintech startup that lends to students seeking financial assistance to pursue professional skill development and training. Since launching in 2014, Climb has originated $100 million in loans to nearly 10,000 students.
Reuters reports that the New York-based company has secured a $50 million debt facility from Goldman Sachs, according to a statement from both companies.
Specifically, the funding comes from the Goldman Sachs Urban Investment Group, whose investment focus is closing the opportunity for low-income individuals and families in underserved communities in the United States.
The outlet reports that Goldman has committed to buying up to $50 million worth of Climb’s loans, agreeing to holding this debt on its balance sheet, according to a Goldman spokesman.
"The Urban Investment Group is proud to partner with a company that is making career-focused post-secondary education accessible for students from all income levels and backgrounds."
"The Urban Investment Group is proud to partner with a company that is making career-focused post-secondary education accessible for students from all income levels and backgrounds," said Margaret Anadu, managing director and head of the Goldman Sachs Urban Investment Group, in a press release. "We look forward to supporting Climb as they help create opportunities for students to deepen their skills and create opportunities for their futures."
Climb’s model is unique from other student lenders. Rather than focusing on degree seekers, it offers financing for hundreds of pre-selected professional training courses ranging from data science to construction chosen for their proven earning potential.
"We are excited to use this lending capital to strengthen and extend our offerings so we can help new students, career-switchers and employees who need to up-skill. The funding will allow us to help more people across the country build hard skill sets and transform their careers," said Angela Ceresnie, CEO of Climb Credit. "By aligning school motivations with student career and salary goals, we open the door for thousands of people who want to change their lives through education."