By AltFi on Wednesday 20 November 2013
Braeger Financial Group have announced the creation of the first investor lending site in the auto finance space – VroomBank.com.
VroomBank.com will place qualified investors’ funds into 3, 4 and 5 year notes, at interest rates of 7, 8 and 9%, and then invest them with auto finance companies. David Braeger explained: “We are creating a crowd funding investor site in tandem with a registered brokerage firm that is fully compliant with all regulations that will protect all qualified investors’ monies giving investors full confidence regarding the management of their funds.”
“Unlike other websites that offer investors the ability to lend money and receive a rate of return which most often is not fixed, our business model is simply easier. The largest community lending sites actually recommend that on a $5000 dollar investment you put $25 dollars into over 200 loans to get the necessary diversity to protect your principal. It is not worth the headache.”
The yet-to-launch platform is already drawing some lofty praise. According to Bill Kellagher, President of Nationwide Specialty Finance Company, “VroomBank’s ability to provide scalable tranche financing to auto non-prime finance companies is a game changer. Most hedge funds want to fund $50 million or more per tranche. VroomBank.com can fund $500,000 to $5 million or more per transaction.”
Joseph Barisonzi, CEO of Community Leader, has recently released a book – “Navigating Your Portal Launch” – on the critical business and operational challenges for those considering the launch of an equity or lending-based crowdfunding platform.
The forty-page read is sure to offer a deeper insight into the conception of VroomBank. Braeger states that the book “lays out the critical questions Braeger Financial Group addressed in the development of our VroomBank crowdfunding platform”.