Inside Agora Data’s new ‘capless’ forward-flow deal

Consumer fintech Agora Data has established an evergreen forward-flow deal with powersports lender Model Finance Company following a Feb. 25 announcement that the fintech had purchased a pool of loans from the lender in its first powersports transaction. The forward-flow agreement took effect immediately following Agora ’s bulk purchase of $12 million in loans originated on two- and three-wheeled motorcycles through a whole loan structure with Orange, Calif.-based Model Finance (MFC), Sharon Mancero , managing director and head of financial institutions at Agora, told Auto Finance News . Under forward-flow agreements, assets are sold from one entity to another continuously, whereas whole loan transactions allow for a bulk, one-time purchase of a company’s specified loan pool. Mancero confirmed that the whole loan deal has closed, and that the two companies have entered into an evergreen forward-flow agreement with no financial cap or deadline. “If it's two- and three-wheeled motorcycle loans that fit the underwriting criteria, great, let's do $1 million, $2 million or $3 million a month,” Mancero said. “We don't have a limit on how much of that paper that we're able to consume.” — Sharon Mancero, Agora Data The new capital provided by Arlington, Texas-based Agora will allow MFC to drive growth while improving its services for dealers and consumers, according to the Feb. 25 press release. Market entrance ahead of schedule Agora’s decision to provide $12 million in capital to MFC came months earlier than projected and reflects Agora’s belief that the funds will position the lender to reach more near-prime and subprime consumers, Mancero said. “It was on my schedule to dive into this [market] later this year, but [MFC] is a good operator, so if we can take care of them right now, let’s take that first bite out of the apple,” she said. With that first bite came a conversation on how the team would navigate the product mix for the initial powersport deals, Mancero said. The current structures are limited to loans originated on two- and three-wheeled motorcycles; however Agora plans to diversify that product mix later as its pool of market and consumer data grows, she said. “We're a big data house, so we went into the [powersports deal] narrowly focused, but we have a large appetite for opening up that funnel to be broader based and we’re looking at other assets within the powersports industry as a whole.” — Sharon Mancero, Agora Data Driving growth with added capital, alternative data The decision to enter powersports is also in line with Agora’s broader strategy of digging into markets lacking consumer data and lender capital, Mancero said. “We've never done [powersports] before, but just because we haven't done it doesn’t mean that we can't or won't,” she said. “We're always exploring new opportunities, because the consumers are financing more and more.” As consumer demand rises, alternative data remains key to driving growth responsibly, she said. “At the super-prime and prime [tiers], you don't need as much alternative data to rely upon, but when you go through the credit spectrum, the FICO experience isn't as relevant,” Mancero said. Instead, pairing traditional data like FICO scores with alternative data points, such as from the consumer’s mobile phone provider, can paint a clearer picture of the risk associated with a consumer, she said. Mancero noted that some lenders continue to face liquidity challenges, even with a willingness to use additional data and resources to better serve consumers. “There's a need out there for these finance companies to get access to capital,” she said, so that lenders can reach “that non-prime and subprime consumer that they may need a motorcycle to get to and from work, especially in a place like Arizona or California where you can use a motorcycle most of the year.” Auto Finance Summit East 2025 is set for May 12-14 at the JW Marriott Nashville featuring fireside chats with Santander Consumer USA and Chase Auto. Visit autofinance.live for more information. Early bird registration is available here .

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Inside Agora Data’s new ‘capless’ forward-flow deal

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