Car Capital, the automotive FinTech car company, has closed a $150 million three-year secured credit facility, a press release says.
That will also come with debt needed to help grow the business, which will fund more dealers and bolster the number of underserved customers wanting to buy vehicles.
“We are very pleased to partner with Fortress who has a long history of providing capital to FinTech and automotive companies,” said Justin Tisler, co-founder and CEO at Car Capital. “The commitment, both on the debt and equity side, of such a respected market participant is a testament to our business model, team, and market opportunity.”
Car Capital’s dealer partners will make use of its Dealer Electric Auto Loan System (DEALS) fully digital platform to instantly approve deals for customers without respect to credit history. DEALS will allow for dealers to make 24/7 approval decisions based on the individualized economics of the cars and customers.
“Car Capital has built an exceptional business powered by proven, innovative technology and a business model that delivers substantial benefits to consumers and dealers alike,” said Dominick Ruggiero, managing director at Fortress Investment Group. “We are excited to provide a capital solution that positions Car Capital for significant continued growth in the years ahead.”
In related news, PYMNTS writes that Goldman Sachs has plans to release a new credit card with General Motors, which will help to attract new customers.
Goldman was one of the choices for the GM partnership for the last few years. It will help out with more retail banking.
“The average person in the U.S. spends an hour in their car,” Stephanie Cohen, who helps lead Goldman’s consumer and wealth business, told Bloomberg. “This is just something they engage with all the time. People want to experience financial services and ecosystems that they love and that they trust.”