FIX4 Capital gains $7.2M in seed funding to build car-repair loan business
FIX4 Capital wants to help Canadians get the finances they need to keep their vehicles running properly.
And Wednesday, the firm secured its own financial resources to do it along with expanded leadership that includes a familiar name from the Canadian wholesale market.
The company founded early last year to provide affordable and flexible car repair loans said it has raised $7.2 million in its first-round seed funding to help propel its growth plans.
According to a news release the round included the participation of venture capital firm Tactico, investment advisory company Keira Capital Partners and angel investors including Martin Lavigne, former president of National Bank and NBF Wealth Management.
Since launching its app and quick loan service earlier this year, FIX4 Capital highlighted that it has helped hundreds of drivers get back on the road through its promise of quick access to money for car repair and maintenance. In the process, the company said it has helped service centers reduce the potential for lost revenues even and especially in the throes of COVID-19.
“We’re committed to giving car owners access to fair car repair loans in an ethical, transparent, quick and convenient way,” said Tave Della Porta, co-founder and chief executive officer of FIX4 Capital.
“Too many people are being lured into borrowing money with unreasonable interest rates or terms. I’ve seen this story play out too many times and I’m delighted that there are many who feel the same way,” Della Porta continued.
Della Porta and his two partners, Derek Lloyd and Robert Bédard, have assembled a core team of experienced automotive and finance business leaders — and now experienced investors — who hold firm to the belief that a service-solution like FIX4 Capital is more needed than ever.
“We invested in FIX4 because the leadership team has the right combination of industry experience, customer service focus and technology know-how,” said Rick Ness, managing director of Tactico.
“We are excited about the vision of the founders and their ability to execute,” Ness added.
Other experienced executives who have joined FIX4 Capital include:
— Chris Harvey, former vice president at Autotrader
— Joe Carusella, previously vice president at Fairstone Financial
— Stéphane St-Hilaire, previously president and CEO of ADESA
“The need for fair financing in the auto repair sector is greater than we could have ever imagined,” Della Porta said. “The response we’ve received from our existing service repair partners and dealerships confirms what we suspected — a percentage of consumers are either unable to repair their vehicle or falling into the arms of predatory lenders.”
FIX4 Capital offers open financing of up to $10,000 with 12-, 24- or 36-month terms, with an interest rate of 19.9%. The company explained approval is based on the vehicle’s value and not one’s credit score.
Furthermore, FIX4 Capital said it does not require references, background or credit checks. The company has developed what it thinks is a simple to use, instant online loan approval system through which customers can secure approval in less than five minutes.
FIX4 Capital pays the service center on behalf of the borrower. The service is completely free for merchants. Customers can instantly find out their maximum eligible loan amount simply by providing their vehicle’s basic details — make, model, year and mileage.
“Customers can secure their loan right from the service center,” Della Porta said. “We fundamentally believe that everyone should have equal access to affordable and flexible financing when it comes to having their automobile repaired.
“We entered the market looking to disrupt high-interest lenders,” he went on to say. “Our rates are equally low for everyone, no matter what their credit or income situation is. We have no hidden fees or gimmicks.”
For information on FIX4 Capital or to start the loan process, visit fix4.com. Dealerships and auto repair centers interested in finding out more about the FIX4 auto repair financing program for their customers can call (855) 831-1186.