A new line of credit, secured through the Finitive private credit platform, will provide dedicated capital for TRADE X to expand its global B2B automotive trading platform across North America.
Finitive, a financial technology platform providing institutional investors with direct access to private credit transactions, today announced that it has facilitated new growth capital for TRADE X, a global B2B automotive trading platform. TRADE X enables the entire B2B automotive ecosystem – including OEMs, fleet and car dealers – to buy and sell pre-owned vehicles in a secure and globally compliant marketplace.
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The senior secured revolving line of credit of US$50 million, including an accordion to expand up to US$100 million, will help TRADE X expand its offering across the United States and Canada. A global asset management firm with over US$100 billion in assets under management provided the financing for the transaction.
TRADE X is the first full end-to-end online solution that leverages its global trading platform to aggregate supply and demand among buyers and sellers. It eliminates the need for a middleman, helping dealers who otherwise would never have transacted to not only find each other, but also conduct buying and selling activities in a highly transparent, compliant and secure way.
“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,” said Ryan Davidson, CEO of TRADE X. “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 unique automotive trading platform, OEM, fleet/rental providers, bank/finance institutions and automotive dealers can merchandise their inventory across borders to a global audience. By standing as the trusted third-party escrow, TRADE X and its proprietary software provide peace of mind and security for users, offering transactional financing for buyers and global pricing analytics for sellers. TRADE X also provides digital documentation, international payments, global forwarding and automatic language translations, among other services. Trade X handles all the complicated procedures and automates the selling and purchasing of vehicles between users, simplifying the experience and ensuring each transaction is compliant, insured and monitored from start to finish.
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“The global opportunity for TRADE X is immense: Between the US 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,” said Jon Barlow, CEO of Finitive. “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,” said Luciano Butera, COO of TRADE X. “This validation comes on the heels of our initial expansion into Europe and Africa and we are encouraged by the markets’ receptiveness to advance the future of automotive trade.”
A team of finance lawyers from Alston & Bird LLP, led by Mark Harris, acted as U.S. legal counsel to TRADE X in the transaction.
Finitive, a fintech platform based in New York, matched TRADE X with the investor that provided the new growth capital. In addition to auto finance, Finitive facilitates private credit transactions in a range of asset classes, including litigation finance, equipment finance, retail finance and distressed real estate. Investors can access opportunities ranging from direct lending and bridge lending to co-investment opportunities.
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