Fintech company Car Capital has closed an $8.8 million Series A funding round that will enable it to launch its auto loan business across several states.
The Grapevine, Texas-based startup specializes in facilitating fast loan applications for car dealerships, promising a completely automated approval process and offering loans regardless of the customer's credit background.
A dealer submits a customer application through the company's Dealer Electric Auto Loan System (DEALS), which provides deal structures for all the cars on the dealer's lot. It shows the dealer's projected profit, enabling them to find the most profitable vehicle that is affordable for the customer.
Car Capital specifies no minimum number of deals, and it funds delinquent loans from a pool of loan capital. The company charges an upfront boarding fee and makes a 20% margin on the customer's loan payment. This opens up automated loan approvals to the subprime market.
"Anyone, no matter their credit situation, should be able to buy a car for personal transportation, particularly during these trying times,” said president and CEO Justin Tisler.
Tisler co-founded the company in January 2020. He comes from a financial background, having been managing director at US ABS Capital Markets and President of boutique advisory firm KentMoore Capital.
The funding round coincides with its official launch. It began rolling out the web portal-based service to a series of dealers in a beta test in mid-March and plans a larger deployment in the coming weeks, it said.
FM Capital led the funding round and was joined by over 50 individual and institutional investors, including Automotive Ventures and Medalist Partners.
Car Capital is currently licensed to operate in Florida, Georgia, Illinois, Indiana, Ohio, Oklahoma, Tennessee, and Texas according to its website. The funding round will help it expand to serve additional states in the future, it explained when announcing the launch.
-
M&S suspends online sales as 'cyber incident' continuesNews Marks & Spencer (M&S) has informed customers that all online and app sales have been suspended as the high street retailer battles a ‘cyber incident’.
-
Manners cost nothing, unless you’re using ChatGPTOpinion Polite users are costing OpenAI millions of dollars each year – but Ps and Qs are a small dent in what ChatGPT could cost the planet
-
Enterprises are doubling down on IT optimization strategies – and it’s delivering huge financial returnsNews Organizations that have cracked IT cost optimization and innovation reap the rewards both financially and in terms of time to market.
-
Unlock the potential of LATAM’s booming crypto marketwhitepaper Strategic pathways for crypto companies looking to expand into Latin America
-
The customer knows best: How to ensure you’re delivering an effective digital payments experienceSponsored Tap into shifting customer trends with account information services that will give your business a competitive edge
-
How AI is accelerating digital transformation in the banking industrySupported Content Gen AI, fraud detection, and chatbots are all transforming the financial industry, but the cloud is the foundation for it all
-
What open banking means for the future of online transactionsOpen banking offers a faster, more automated future for transactions – but it has a rigid legal road to traverse
-
The online cash revolutionwhitepaper Why adding eCash to the checkout unlocks more growth
-
Building an outstanding digital experiencewhitepaper Insight into how banks and financial services organizations can deliver the digital experiences customers and employees expect
-
How payments support the growth of software platformswhitepaper Discover how Paysafe can help drive the growth and success of your software platform
