Colleyville company obtains $ 4.15 million in financing to develop its automotive technology tool
Colleyville company that has created technology to simplify the repayment process for vehicle lenders receives $ 4.15 million in growth funding.
Lender Compliance Technologies received the investment – its first round of funding – from Automotive Ventures and Driven Capital Partners.
Through the company’s flagship product, Repayment Control, lenders serving the automotive, recreational vehicle, marine and powersports markets are able to simultaneously submit cancellations to dealers and suppliers and to access refunds to be granted to customers. Cancellations can occur when there are prepayments from a lender, repossessions of vehicles or untreated insurance losses.
“There has never been a more important time for lenders to successfully manage and navigate the many consumer regulations they face,” Glenn Munro, president of Lender Compliance Technologies, said in a statement.
The company’s product gives lenders the power to protect themselves against possible violations of consumer protection law.
Steve Greenfield, founder and CEO of Atlanta-based Automotive Ventures, said consumers buy nearly 40 million finance and insurance products a year.
“The market is huge and the risks are great,” he said. “Cancellations and credits for consumer F&I products are tedious and, if handled improperly, expose lenders to heavy fines and damaged reputations. “
Greenfield said he viewed the company’s technology as providing “services to simplify, automate and streamline this process.”
Tim Gill, a board member for Lender Compliance Technologies, said the company is working to make sure all parts are “fixed” in the process.
“It’s about the bank, it’s about the consumer, the most important, and it’s about the stakeholders,” said Gill.
The Greenfield-based company has invested in nine companies from its recently closed $ 7.3 million fund to support early stage auto tech companies.
“We should be able to get a very good return on investment [in Lender Compliance Technologies]”said Greenfield.