FinBe eyes $12M monthly origination volume, issues first ABS deal

Subprime auto lender FinBe USA is looking to grow originations volume on the heels of its first auto asset-backed securitization issuance and as the lender seeks additional warehouse funding.

FinBe on June 16 issued a $123.2 million subprime asset-backed securitization (ABS) deal, according to Finsight , which monitors securities. It’s the financier’s first issuance following its rebrand from Credito Real USA in 2023 , when Mexico City-based Bepensa Capital acquired a majority stake in the company. Credito Real last issued a securitization in April 2021.

The lender plans to issue in the capital markets about every 12 to 18 months to free up capacity on its line of credit and support volume growth, Chief Executive Scot Seagrave told Auto Finance News .

FinBe has a $130 million line of credit from Banco Inbursa and $62.5 million in subordinated debt from Bepensa Capital subsidiary Financiera Bepensa , according to a June 11 Kroll Bond Rating Agency presale report of the latest deal.

The financier is eyeing a return to “controlled growth” following a slowdown on the heels of credit performance challenges in 2022 and 2023, Seagrave said, noting that a healthier portfolio and stabilizing economy have paved the way for increased activity.

FinBe expects originations to reach between $10 million and $12 million per month by the second half of 2025 and grow in 2026, he said.

The company is also seeking additional warehouse funding through U.S. banks, Seagrave said, with the goal of a warehouse line between $100 million and $150 million.

Eyeing growth Fort Lauderdale, Fla.-based FinBe as of March 31 operates in 32 states and with a dealer base of about 1,400, according to the presale report. FinBe’s serviced portfolio stood at $185.4 million across 10,500 receivables.

FinBe offers four products, including the Vamos Program geared toward dealers in Latin American communities and applicants who have no Social Security numbers or who have tax identification numbers, according to the presale report.

The latest deal carried a higher concentration of loans tied to the Vamos program compared with the 2021 issuance, according to the presale report.

FinBe also provides mobility financing for consumers looking to purchase accessible vans, to those who are in Chapter 7 or Chapter 13 bankruptcy and to traditional subprime consumers.

Comparing deals The collateral pool breakdown by product type in the new ABS deal compared with that of the deal issued by Credito Real in 2021 was as follows, according to KBRA:

Vamos Program: 72% from19%; Mobility: 6.8% from none; Bankruptcy: 4.8% from 10.2%; and Traditional subprime: 16.4% from 66.3%. In 2024, originations breakdown by product type were 87.5% Vamos, 7.3% mobility, 2.7% bankruptcy and 2.4% traditional subprime, according to KBRA.

“We’ve seen increased filings in most states for bankruptcy. There’s a big opportunity for us to gain some market share,” Seagrave said.

"There’s a big opportunity for us to gain some market share." -- Scot Seagrave, CEO, FinBe USA

Sales to consumers using the Vamos product have also picked up at dealerships following a slowdown in the first quarter amid market uncertainty, he said.

FinBe’s loans as of April 30 carried a weighted average (WA) FICO score of 595, an average percentage rate (APR) of 22.1%, WA original term of 68 months and WA LTV of 141.4%, according to the presale. In the 2021 deal issued by Creditor Real, the WA FICO score was 558, APR was 23.5%, WA original term was 67 months and the WA LTV was 137.3%.

Loans to consumers with no FICO scores made up 60.6% of the collateral pool in FinBe’s deal compared with 27.3% in the 2021 issuance. KRBA's lifetime expected cumulative net loss for the new deal is 21.2% compared with 25.6% in the 2021 issuance due to improved recovery projections and lower loss assumptions.

Spreads on FinBe’s deal were wider compared with recent issuances from peer lenders. For example, Class A spreads were 155 basis points (bps) for FinBe’s deal compared with 65 bps in American Credit Acceptance ’s May 9 deal, 100 bps in Tricolor Auto Acceptance ’s June 10 issuance and 115 bps in Veros Credit ’s May 21 deal, according to Finsight.

About 85.7% of the loans in FinBe’s 2025 collateral pool are from independent dealers, according to KBRA. “We’re looking to get our foot in the door with more franchise stores around the country,” Seagrave said.

Other subprime issuances Several other subprime lenders came to market during the past two weeks. Lendbuzz issued a $266 million deal on June 13, Tricolor issued a $217 million securitization on June 10 and Pagaya issued a $300 million deal on June 9, according to Finsight.

Nonprime auto ABS issuance totaled $20.5 billion year to date through June 13, down 10.9% year over year, according to the latest JPMorgan Securities data. Total issuance landed at $84.6 billion, down 7.2% YoY.

Auto ABS volume YTD [caption id="attachment_58352524" align="aligncenter" width="1024"] (Courtesy/Big Wheels | Source/JPMorgan Securities)[/caption] Agora Data issues first rated deal Consumer fintech Agora Data also issued its first rated auto ABS securitization on May 14, a $112 million transaction backed by subprime loans, according to Finsight. Agora purchases retail installment contracts from dealers and finance companies, largely in the subprime sector.

Texas-based Agora previously issued several private securitizations and has multiple lines of credit, Chris Hawke , chief financial officer and chief legal officer, told AFN .

As of March 31, Agora had about $300 million in warehouse capacity, according to a May 21 KBRA presale report. The fintech also purchased $12 million in powersports loans originated by Model Finance Company in February and established a forward-flow deal with the powersports lender in March.

The ABS deal will allow Agora to free up capacity in its lines of credit, diversity funding sources and tap investor demand, Hawke said. Capital markets, he said, are more stable than they were on April 5, when auto tariffs went into effect , adding that Agora is eyeing a "couple” of ABS deals a year.

“The securitization markets, in general, are a natural place to do permanent financing for this asset class,” he said. “As we think about broadening our capital plans and our capital partners, the ability to demonstrate that we can access the market is helpful.”

In 2024, Agora had a managed portfolio of $206.3 million, with contract volume up 16% YoY at $121 million, according to the presale report.

“There are other folks that are creating opportunities for us that are either exiting the market or having difficulty accessing financing,” Hawke said. “It’s critical to make sure that we’ve got all our financing tools primed and ready to take advantage of those opportunities.”

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