PowerBand Solutions (TSXV: PBX) announced this morning it expects to begin lease originations via its proprietary cloud-based platform for consumers and auto dealers this month, with CEO Kelly Jennings indicating that the company anticipates to originate lease contracts for consumers and dealers alike once all financial institutions are onboarded successfully. Extensive lease financing from US financial institutions as a result is expected in the near term.
The platform will enable consumers and dealers to access extensive funding facilities from national financial institutions. These exclusive financing arrangements are to be made public upon completion of each specific financing agreement, with CEO Jennings indicating that these institutions are in the process of being onboarded to the PowerBand platform, with MUSA anticipated to originate significant leases upon the closing of the contracts.
The lease originations will be sourced through that of MUSA, PowerBand’s 60% owned cloud-based transaction platform. Combined with PowerBand’s proprietary platform, it enables consumers and dealers to buy, sell, trade, finance and lease vehicles from smartphones and other digital devices.
A majority stake in MUSA was acquired by PowerBand in July 2019 as a means of advancing the mission of disrupting the automotive market through PowerBand’s proprietary cloud-based platform. The technology behind MUSA takes an application, calculates a lease, auto decisions the application, provides an approval back to dealer partners and pre-fills a lease contract accurately – with approvals occurring in only a few seconds. The tech was awarded a contract by Tesla Motors to become a national leasing partner in 2018.
Further, PowerBand has agreed to make the entire PowerBand transactional platform available to the thousands of dealerships currently working with RouteOne LLc. RouteOne maintains a footprint of over 16,000 automotive dealers and 1,500 finance sources, and was formed by a joint venture between Ally Financial, Ford Motor Credit Company, TD Auto Finance, and Toyota Financial Services. The company provides a suite of finance and insurance tools, including credit applications, eContracting to digital retail, and compliance.
PowerBand Solutions last traded at $0.20 on the TSX Venture.
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