Tricolor closed a $100 million warehouse facility with Cincinnati-based Fifth Third Bank, secured by loans originated across its growing footprint, which spans five states, 20 markets and 55 retail hubs.
“The addition of Fifth Third Bank to our capital structure is another strong validation of our strategy and another significant step towards diversifying our sources of capital to support our growth as we continue expanding our platform into new markets,” Daniel Chu, founder and CEO of Tricolor, said.
Tricolor has more than doubled its origination volume over the past two years, as well as doubled its market share over the past three years. Only CarMax and Carvana sell more used vehicles than Tricolor in Texas.
“We are excited to support Tricolor and its purpose-driven strategy to expand financial inclusion to a financially underserved yet critical segment of the U.S. population,” Steven Ellis, managing director of asset securitization at Fifth Third Bank, said. “We’ve followed their progress for the last decade and the commitment of the Tricolor team to deliver a compelling and unique value proposition is highly admirable.”
During that same span, Tricolor’s focus on expanding financial inclusion to the underserved led it to become the first-ever lender in the United States to issue a social bond collateralized by consumer auto asset backed securities. This designation furthers the company’s mission to empower underserved, low-income communities and provide them with improved access to mainstream financing that ultimately allows them to build a better future.
