Florida-based Fintech company Finova Financial secures record-breaking $52.5 million in funding for auto title lending platform.
Largest funding in history of Fintech
Being the first cloud and mobile-based auto title lending service for consumers, Finova secured one of the largest funding rounds in the history of the Fintech industry.
Sources of funding include MHS Capital, Refactor Capital, Metamorphic Venture, and 500 StartUps as well as fintech entrepreneurs including Sam Hodges, Co-founder of NerdWallet, Jake Gibson, and a private company in the United Arab Emirates.
Led by several Silicon Valley-based capital firms as well as international venture capital firms, the funding will go towards growing the industry’s first-to-market all-digital lending platform for auto title loans.
Gregory Keough, CEO of Finova Financial, states:
“Finova Financial was launched to help consumers get critically-needed cash without the traditional barriers of high interest rates, inconvenient application processes and restrictive payment terms of the auto title lending industry.”
Easier and secure way of getting loans
Presently, over 28% of Americans are having banking problems and need easier and secure ways of getting loans. According to BusinessWire, 70 million consumers pay $138 billion in fees annually for alternative financial products.
Finova has said that with their focus on social-impact, they will be providing up to 70% lower costs to consumers on Car Equity Line of Credit (C-LOC).
Since auto title loans require payment within a month and charge heavy interest rates, Finova financial also says they will eliminate this model to give transparent loan repayment terms.
What is Finova Financial?
Founded by a group of Fintech experts back in 2015, Finova’s goal is to disrupt the Fintech industry.
By providing an online lending platform that offers fast, affordable loans based on the equity in your car. It aims to deliver an online option to 70 million underserved Americans as well as 24/7 access to capital.
Keough explains:
“As a company committed to social impact, we see Finova Financial as being an advocate for consumer financial well-being through improved access to credit, better repayment terms and lower costs.”