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Salad Money, a fintech providing credit services to NHS and public sector workers, has secured a £40m debt facility from a US fund.

The London-based company offers small-sum loans to key workers. The application process uses open banking technology to assess affordability, which Salad Money said means applicants aren’t penalised for having impaired credit scores.

Around half of Salad Money’s borrowers earn between £12,000 and £24,000 with children in their household. The company said many of these people would typically be turned down by traditional lenders due to their credit scores.

“This new, committed facility brings our total senior debt funding to £50m and with it, the financial firepower to help more NHS and public sector workers avoid high-cost credit,” said Salad Money CFO Phillip Hyett.

“We see first-hand that demand for fair and affordable finance is increasing rapidly and we are delighted to lead the way in helping address this need.”

The startup is a member of the community finance sector representative, Responsible Finance, which has called for greater support for loan options for those excluded from mainstream credit options.

“This landmark deal for the UK’s community development finance sector is tremendous news for NHS and public sector workers who need and can afford to repay credit but don’t have enough fair options available,” said Theodora Hadjimichael, CEO of Responsible Finance.

“Without CDFIs like Salad, they are locked out of access to finance and risk turning to providers who don’t prioritise their well-being.”

The company did not specify which US-based credit fund supplied the debt facility.