Lendbuzz lands new $400M forward flow agreement with Viola Credit
Lendbuzz has enjoyed a fruitful summer of gaining financial resources to facilitate auto financing.
On Tuesday, Lendbuzz announced that it has secured a new $400 million forward flow program with Viola Credit, a global alternative asset manager specialized in providing asset-based solutions to innovative technology enabled finance companies.
The development arrived after Lendbuzz gained a $50 million revolving line of credit in July with BHI, the U.S division of Bank Hapoalim and a full-service commercial bank.
And in June, Lendbuzz announced that it has closed a $100 million credit facility with MUFG in a development that arrived about a month after the 2023 Emerging 8 honoree closed a $100 million warehouse facility with Mizuho Americas.
The newest commitment represents the continuation of a longstanding partnership between the two firms, who have executed over $1 billion of financing and asset purchase transactions since 2018.
According to a news release, this additional forward flow program will enable Lendbuzz to expand its reach and serve an even greater number of consumers through its proprietary artificial intelligence-based auto finance platform.
By leveraging alternative data and machine-learning algorithms, Lendbuzz can evaluate the creditworthiness of consumers across the credit spectrum, many of whom are underserved by traditional banks.
Additionally, Lendbuzz offers its customers a modern, digital financing experience.
“We are excited to continue our long-standing collaboration with Viola Credit, a key supporter since our early days,” Lendbuzz co-founder and CEO Amitay Kalmar said in the news release. “This partnership advances our mission to provide better access to credit for underserved consumers across the U.S. and allows us to remain at the forefront of utilizing AI and machine learning in consumer credit.
“Our proprietary technology and underwriting engines have proven to be effective and valuable for consumers across the U.S.,” Kalmar continued.
Viola Credit managing partner Ido Vigdor added, “We are excited to expand our partnership with the Lendbuzz team and support the company as it continues to scale its origination business.
“We are privileged to have had a front row view of the company’s growth and consistent performance since its earliest days and look forward to continuing to support the company’s origination while providing our investors with access to attractive assets that it originates,” Vigdor went on to say.
Founded in 2015 and based in Boston, Lendbuzz has originated more than $3 billion in paper since 2016.