Agora Data again used the old adage, “strength in numbers,” to leverage the capabilities of the securitizations market for operations that typically do not have the size or scale to attract investment-community interest.

This week, the company announced the successful closing of its second crowdsourced securitization, ACAST 2021-1, on May 27. With the closing of this second transaction, the AgoraCapital program has provided 40 buy-here, pay-here dealers and subprime finance companies with efficient, capital markets access by bundling nearly $200 million in subprime paper.

Agora closed its first securitization just before the close of last year.

Agora Data chief executive officer Steve Burke explained why the ACAST 2021-1 closing marks an important continuation of the company’s developments in the world of structured finance.

“Our AgoraCapital program helps subprime originators proactively plan for the future. It levels the playing field by enabling dealers to borrow more money at a lower cost without the restrictions of other lending sources,” Burke said in a news release.

“There is simply no other affordable and abundant capital for a dealer to safely triple in size without giving up control or equity in its business continued,” he continued.

By participating in an Agora crowdsourced securitization, Burke reiterated that subprime auto entrepreneurs now can gain access to the capital markets like the large dealer groups and institutions have with low-cost capital to maximize their financial leverage and significantly grow their businesses.

Unlike traditional lending sources, not only does Agora provide the needed capital for growth but the company emphasized that it also helps dealers grow safely.

“Our first transaction in December 2020 was groundbreaking. However, in many ways, this second deal is even more significant as it solidifies that AgoraCapital and our ability to deliver for the dealer community is here to stay. Agora is well into its mission to revolutionize how dealers borrow money,” Agora Data chief revenue officer Chris Hawke said.

To get involved in future company securitizations, go to agoradata.com.