While reiterating that it has finalized its acquisition of the auto finance division of Crescent Bank, Arra Finance also announced this week that it has increased its funding capital sources.

With the completion of these key business developments, Arra Finance said it has taken “a major step forward as a significant player in the subprime auto financing space, with a significantly expanded origination capacity and the secure financing necessary to be a partner of choice for dealers across the country.”

As previously shared via social media, Arra’s acquisition of Crescent Bank’s auto finance division closed on Sept. 15, bringing an enhanced technology stack to the Arra platform, including e-contracting and auto-decision capabilities, sophisticated analytics and fraud protection tools.

The company said the transaction also added an established servicing system, infrastructure and larger team, which will allow Arra to service Crescent Bank’s $770 million auto loan portfolio in addition to Arra’s own loans.

The company highlighted again that the closing of this deal significantly increases Arra’s auto finance origination capacity, with an expanded dealer base, “industry-leading” credit application response times and an advanced analytical framework.

With the support of Obra Capital, Arra has entered into a multi-year forward flow agreement that will ensure its supporting capital base can scale in tandem with the rapid growth of its business.

Through its capital structure, Arra has also secured access to a credit warehouse facility with Goldman Sachs, providing readily accessible senior warehouse financing.

Taken together, Arra Finance CEO Kenn Wardle explained, this wider pool of funding capital and ability to generate consistent long-term cash flow allows the company to match its expanded origination capacity with a robust financing ecosystem operating at scale.

“Arra is set to advance the subprime auto financing market. We have built a platform tailor-made to meet dealer needs, with near immediate credit application response times and a strong financing pipeline,” Wardle said in a news release.

“With today’s announcement, we have the funding, reach, technology and analytic capabilities necessary to deliver routinely positive results for our dealers at significant volume. We are thrilled to enter this next phase of growth for our business,” he continued.

The developments involving Arra Finance arrived at a time when the subprime auto finance segment is getting examined closer, especially in connection with securitizations.

Steven Lackowski is chief financial officer at Arra Finance.

“Arra has established an innovative and durable capital structure, with flexibility enabled by continued support from Obra,” Lackowski said in the news release. “Our capital strategy continues to be a key differentiator as we can offer efficient products for dealerships, borrowers and investors.

“In preparation for our entry into the ABS market, we have enhanced the scalability of our platform, improving our ability to meet dealer needs with diversified, reliable capital sources and positioning Arra as the trusted partner dealers can count on to fuel their growth,” Lackowski continued.

Blair Wallace is president and chief executive officer of Obra Capital, which purchased the finance company in August of last year.

“In just a few short months, Arra has executed on key growth objectives with speed and precision, emerging as a leader in the subprime auto finance market,” Wallace said. “With expanded capital markets access, we see considerable opportunity for Arra to capitalize on its industry positioning, establishing a new model for operational excellence and strategic execution.”