The launch of DebtMarket marked the debut of the world’s first marketplace for consumer loan portfolios across all major asset classes. With this new offering came increased access, price transparency, communication and streamlined transaction processes.
In 2006, the DebtMarket founding team set out to better understand the $100 billion in subprime auto and buy-here-pay-here contracts that originated and sold in the second market annually. We discovered serious inefficiencies in the sales process, and it was burdensome for auto dealers to connect with portfolio buyers while trying to run a business.
The vision of DebtMarket’s beta platform, GDNauto, was to connect dealers and other auto loan originators with competing portfolio buyers in a transparent and efficient online marketplace. Since initializing the idea, GDNauto has transformed the way auto dealerships and financial institutions trade as much as $30 billion a year in subprime auto debt.
The same problems discovered within the buy-here-pay-here community became issues that larger financial institutions faced. In response to that market need, we expanded our platform to expand to additional asset classes, credit quality, portfolio sizes and loan performance, to better service the financial community.
Milestones:
- January 2007: Company founded
- June 2008: GDNauto.com beta launch
- December 2008: GDNauto reaches $150 million in loan portfolio listings
- June 2009: GDNauto reaches $250 million in loan portfolio listings
- August 2009: DebtMarket launch to provide marketplace for all major asset classes, all credit quality levels and all loan performance levels
