Arra Finance Lands $100 Million Warehouse Financing Amid Market Caution

October 1, 2025 - 20:22

Subprime auto lender Arra Finance has successfully secured a warehouse line of financing exceeding $100 million from Goldman Sachs, a significant move in a cautious lending environment following the recent bankruptcy filing of Tricolor Auto. This financing comes shortly after Arra Finance completed the acquisition of Crescent Bank's auto finance division and the servicing rights to its substantial $770 million auto portfolio last month.

The new funding will enable Arra Finance to bolster its operations and expand its lending capabilities, despite the prevailing uncertainties in the auto finance sector. The decision by Goldman Sachs to back Arra Finance highlights a strategic investment in a company that is actively reshaping its portfolio and positioning itself for growth. As the market navigates through challenges, Arra Finance's ability to secure such a substantial line of credit demonstrates confidence in its business model and future prospects. This financing is expected to play a crucial role in supporting Arra's objectives in the competitive subprime auto lending landscape.