Atlanta, Georgia-based Spring Tree Lending LLC, which buys and services non-prime auto loans from auto dealers and lenders in the southeastern U.S., has closed on a line of credit for an undisclosed amount.
Spartan Financial, a division of American Credit Acceptance LLC, is providing the credit line, which could expand to as much as $10 million, according to a press release from Scottsdale, Arizona-based DPG Investments LLC, which wholly owns the Spring Tree subsidiary.
“This line of credit will further the growth of Spring Tree by providing an additional source of funds to acquire loans from our vast dealer network,” said Dan Galvanoni, DPG chairman.
The company is making a show of expansion during a time of possible consolidation within the industry, as it’s been noted by last week’s S&P periodic performance review for July 2016, as well as executives at Westlake Financial Services Inc.
“The non-prime auto lending market is an important part of the economy,” said Jerry Hudspeth, managing director of DPG and CEO and managing partner of Spring Tree. “We are now poised for rapid growth in this dynamic segment while providing best in business practices.”
