Finitive, a fintech platform providing institutional investors with direct access to private credit transactions, facilitated a $50 million senior secured revolving line of credit with an accordion feature of $100 million to TRADE X, a global B2B automotive trading platform.
“Before TRADE X, global automotive trade was very fragmented and full of friction, with asymmetric information sharing, lack of trust, limited or complicated financing, and no real marketplace to connect buyers and sellers on a global scale,” Ryan Davidson, CEO of TRADE X, said. “The new credit facility obtained through Finitive will equip us to help dealerships accelerate their inventory turnover, increase their revenue and boost profits.”
Using TRADE X’s automotive trading platform, OEM, fleet/rental providers, bank/finance institutions and automotive dealers can merchandise their inventory across borders to a global audience. TRADE X and its proprietary software offers transactional financing for buyers and global pricing analytics for sellers.
“The global opportunity for TRADE X is immense. Between the U.S. and Canada alone, B2B automotive cross-border sales total about $10 billion annually. Globally, pre-owned sales in general are an approximate $1 trillion industry,” Jon Barlow, CEO of Finitive, said. “Finitive is delighted to have connected TRADE X with a major investor to expand its ability to serve more dealerships and transform their businesses.”
“We’re excited with this initial investment in TRADE X, as it will help accelerate the globalization of buying and selling vehicles beyond borders, creating ease and simplicity for buyers and sellers to push past their traditional reach,” Luciano Butera, chief operating officer of TRADE X, said. “This validation comes on the heels of our initial expansion into Europe and Africa and we are encouraged by the market’s receptiveness to advance the future of automotive trade.”
A team of finance lawyers from Alston & Bird, led by Mark Harris, acted as U.S. legal counsel to TRADE X in the transaction.