Lendbuzz Renews and Expands Revolving Line of Credit with BHI to $50 Million
July 15, 2024
Source: BHI
NEW YORK, July 16, 2024 – BHI, the U.S division of Bank Hapoalim and a full-service commercial bank, today announced it has entered into an agreement with Lendbuzz—an AI-based fintech company that helps consumers obtain better access to credit when purchasing a vehicle—to upsize the existing $20 million facility announced in March 2023 to now encompass a $50 million revolving line of credit. This $50 million line will provide Lendbuzz with additional working capital for general corporate purposes.
BHI has enjoyed a long-standing relationship with Lendbuzz, having served as the agent of two of Lendbuzz’s early warehouse facilities in 2018-2020.
Lendbuzz continues to expand its impact by entering new geographies and signing new partnerships with dealerships. In 2023 the company expanded into Texas, New Jersey, Northern California and Arizona.
Powered by alternative data and machine learning algorithms, Lendbuzz’s proprietary AI-based auto finance platform offers consumers across the credit spectrum a modern, digital lending experience. The cohort of customers: those with no credit file, a thin credit file or those classified as “near-prime”, accounts for over 40 percent of the adult U.S. population and many of whom are continually underserved by traditional banks.
“Lendbuzz epitomizes the capacity that technology has to make a positive impact on people’s lives,” said Gal Defes, First Senior Vice President and Head of International and Tech Banking at BHI. “Lendbuzz’s AI Risk Analysis is helping to facilitate greater access to customers who might have otherwise been unfairly overlooked for fair financing. And in turn, we’re proud to help provide the company with attractive financing opportunities so that they can continue scaling their operations and impact.”
“BHI has intuitively understood our mission from the very beginning and continues to serve as an active partner in Lendbuzz’s journey,” said George Sclavos, Chief Financial Officer at Lendbuzz. “We are excited for this opportunity to deepen our relationship as we continue to utilize our technology to deliver lending opportunities to our customers and drive future growth.”
About BHI
BHI, the U.S division of Bank Hapoalim, Israel's leading financial institution, provides commercial banking solutions to middle market clients in sectors including commercial real estate; general, domestic and Israeli C&I; private equity; food and beverage; apparel; healthcare; corporate banking; and high-tech. In addition to its New York headquarters, the bank operates U.S. Representative Offices in Woodcliff Lake, New Jersey; Miami, Florida; and Los Angeles, California. For more information, visit www.bhiusa.com.
About Lendbuzz
Lendbuzz is an AI-based financial technology company that helps consumers obtain better access to credit when purchasing a vehicle. 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 our auto dealership partners, Lendbuzz offers consumers attractive financing solutions while opening up opportunities for those dealerships to serve a more diverse customer base. Lendbuzz is headquartered in Boston, Massachusetts and was founded in 2015.