BOSTON--(BUSINESS WIRE)--Lendbuzz, a fintech company that is disrupting the car financing market using AI and machine learning algorithms, announced today that it closed a $150 million credit facility with J.P. Morgan.
This is the second credit facility between the investment bank and the financial technology company in 2022 (in January, J.P. Morgan extended a line of credit to Lendbuzz), and in April 2022, J.P. Morgan served as an underwriter on a broadly syndicated ABS transaction. The $150 million credit facility timing and terms—coming in the midst of tremendous shifts in both the automotive retail and financial industries—are advantageous to Lendbuzz and its mission to develop innovative technologies that provide underserved borrowers with better access to credit.
“We are delighted with the confidence J.P. Morgan has shown in Lendbuzz by entering into this facility. This relationship is an important part of our growth strategy, expanding our capacity and ability to originate loans that unlock the power of financial opportunity for a growing number of consumers and dealerships,” said Amitay Kalmar, CEO of Lendbuzz.
This new credit facility will help expand the number of borrowers served by the company’s unique AI-based auto finance platform, one that enables Lendbuzz to assess the creditworthiness of consumers with thin or no credit history—a group that numbers tens of millions of people in the US, who have historically been underserved by traditional lenders.
Lendbuzz is an AI-based auto finance platform that helps consumers obtain fair access to credit when purchasing a car. Powered by alternative data and machine learning algorithms, Lendbuzz can assess the creditworthiness of consumers with limited credit history—a group underserved by traditional banks. Through their auto dealership partners, Lendbuzz offers consumers attractive financing solutions while opening up opportunities for those dealerships to serve a more diversified client base. Lendbuzz is headquartered in Boston, Massachusetts and was founded in 2015.