ARLINGTON, Texas -

Without financial resources, buy-here, pay-here dealerships likely wouldn’t exist since it’s such a high-risk, cash-dependent piece of the automotive industry.

And for the second time in the past couple of months, Agora Data added to its suite of market-disruptive capabilities to address that critical ingredient to operator success.

This week, the firm announced the rollout of its newest tool — AgoraCredit — what the company described as a dealer-friendly line of credit to continue helping an underserved segment.

With AgoraCredit, the company explained BHPH dealers and other underbanked originators can transition from their current senior lender into interim credit lines that are designed to transition into a highly efficient and abundant source of permanent capital — AgoraCapital. 

AgoraCredit was created with the specific goal of not locking originators into expensive and risky lines of credit, but instead with the objective of providing a smooth path into Agora Data’s crowdsourced securitization.

Previously, Agora Data announced the successful closing of what the firm believed to be the first-ever crowdsourced auto securitization; a development that came to fruition on Dec. 29.

Fueled by artificial intelligence and machine learning, Agora Data aggregated numerous originators with portfolios ranging in size from $11,000 to more than $20 million into a single capital markets securitization.

Agora Data chief executive officer Steve Burke explained that securitization gave BHPH operators and subprime originators of all sizes access to the capital markets with lower cost of funds and other business transformation benefits.

Now, Burke indicated AgoraCredit works in partnership with AgoraCapital rather than in competition with it. Burke noted it also removes barriers for dealers and small to mid-size finance companies to graduate directly into this new source of funding that he said has never been available to the auto industry.

“Closing the first crowdsourced securitization at the end of 2020 was a monumental achievement for the auto industry. We showed proof of concept for a business model that brings favorable financing terms to an underserved group of entrepreneurs,” Burke said in a new release about the latest progress of the company founded in 2017.

“With AgoraCredit, we made another addition to our suite of already game-changing capabilities. AgoraCredit will make the process even easier for more dealers and finance companies to access capital,” he continued.

Pioneered by Agora Data, both AgoraCapital and AgoraCredit look to provide a new funding channel to obtain all the cash needed to fuel growth. Agora’s AI-infused technology can connect dealers and finance companies with the capital markets.

For capital markets stakeholders, AgoraTrade and AgoraCapital can offer an opportunity to participate in a time-tested asset class previously not available. Agora Data made history with the closing of the first-ever Crowdsourced Subprime Auto Securitization on Dec. 29.

For more information, contact Agora Data by visiting agoradata.com or calling 877-592-4672.