Fintech company Lendbuzz has raised $216m through an auto loan securitization.

Lendbuzz is a car financing fintech established in 2015 and based in Boston. It uses AI in its underwriting process to offer loans to customers unable to borrow from traditional lenders.

The securitization transaction (Lendbuzz Securitization Trust 2024-2) is backed by loans for new and used cars, trucks and vans. Its senior tranche is rated AA- (S&P)/AAA (KBRA).

This is Lendbuzz’s seventh public securitisation issuance. Raising a total of $1.2bn from these seven deals.

Securitization allows fintech and other challenger lenders to compete with large, long-established players by offering high levels of funding against loans they originate at a low funding cost.