FIX4 Capital raised $7.2 million in its first round seed funding to help move its growth plans forward.
The news is noteworthy because FIX4 Capital, founded in early 2000, aims to provide affordable and flexible car repair loans. The company launched an app and quick loan service earlier this year.
“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 CEO of FIX4 Capital. “Too many people are being lured into borrowing money with unreasonable interest rates or terms.”
The company said it has so far helped hundreds of drivers get back on the road, thanks to its quick access to money for vehicle repair and maintenance. In the process, FIX4 Capital said it also helped service centres reduce the possibility of lost revenues during the height of COVID-19.
The company offers open financing of up to $10,000 over 12, 24 or 36-month terms, with an interest rate of 19.9 per cent—with approval based on the vehicle’s value rather than a person’s credit score. They also do not require references, background or credit checks, and developed an instant online loan approval system for consumers to secure approvals in less than five minutes.
“The need for fair financing in the auto repair sector is greater than we could have ever imagined,” said Della Porta. “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 pays the service centre on behalf of the borrower, while the service is free for merchants. And customers can find their maximum eligible loan amount by providing basic vehicle details like the make, model, year and mileage.
Porta’s two partners are Derek Lloyd and Robert Bédard; they assembled a core team of experienced auto and finance leaders that include Chris Harvey, former vice president at AutoTrader; Joe Carusella, previously vice president at Fairstone Financial; and Stéphane St-Hilaire, previously president and CEO of Adesa.
