Cross River Bank, a technology infrastructure provider that offers embedded financial solutions, announced it extended a $150 million senior secured revolving credit facility to Activehours, Inc. d/b/a EarnIn, an earnings management company.
The facility, structured by Cross River’s Principal Finance Group (PFG), delivers scalable, cost-effective capital to help EarnIn meet demand for its “Cash Out” product- an earned wage access (EWA) solution “that enables workers to access a portion of their pay prior to their payday.”
Cross River is serving as the “sole senior secured lender and administrative agent on the facility.”
The new structure provides EarnIn with “flexible financing to meet the demand for EWA. PFG provides credit facilities and forward flow purchase arrangements to fintech platforms that are solving for gaps in the financial system.”
EarnIn is reshaping the financial system to “put control back in the hands of consumers, offering a more flexible way to get paid.
A key player in the EWA space, the company “launched Cash Out over a decade ago, giving people ‘access to their earnings when they need them.”
The transaction reinforces Cross River’s position “as a capital provider to next-generation financial platforms and advances its mission to promote responsible credit, financial inclusion, and economic empowerment.”
EarnIn lets you access a portion of your earnings “as you earn them – not days or weeks later.”
The company claims that it is on a mission to reimagine “how money moves to empower every person’s potential.”
That starts with payday every day and builds with “automated savings tools, credit monitoring, and low-balance alert features; so customers have as many opportunities as possible to spend and save on their terms.”
EarnIn’s Earned Wage Access app is backed by “partners like A16Z, Matrix Partners, and DST.”
Since their founding in 2013, 3.8 million customers “have given it over 380,000 5-star reviews for helping them access over $15 billion in earnings.”
As clarified in the update, EarnIn is a financial technology company ‘not a bank.”
Banking Services are provided “by Evolve Bank & Trust, Member FDIC.”