PALM BEACH GARDENS, Fla.–Finova Financial reported it has closed a $52.5 million funding round that will be used to expand what it calls an “industry-first” auto title loan cloud platform that it said “delivers fair lending and social impact.”
The company said it is an alternative lending option for unbanked and underserved consumers whom it said pay $138 billion annually in interest and fees to payday lenders and check-cashers.
According to the company, it offers:
* Interest rates at 70% lower than the industry standard
* 12-month repayment programs in lieu of the 30-day standard
* Paths to credit score rehabilitation, repayment grace periods
* The industry’s first cloud-based, online lending application portal
Investors in the company include the royal family of Saudi Arabia, Refactor Capital, CoVenture and Al Hamra Group, a private company owned by the ruling family of Ras Al Khaimah, United Arab Emirates, among others.
Finova Financial was founded in 2015 to be a socially responsible online lender, it reported.