Beepit, a popular car selling site, has reportedly reached a $1 million in debt, The Hill reported Thursday.
The company said it has been unable to collect payments from investors and has been forced to turn to lenders.
According to the report, the company, which has been in operation for six years, has not paid $200,000 in rent on its San Francisco headquarters and is in need of $1.3 million in additional funding.
In a statement, Beepin CEO and cofounder Michael Wylie said the company is now in debt because of its inability to collect the funds it needs to continue operations.
The news comes as Beepity is facing criticism from its investors for having a relatively high debt load and a lack of transparency in the company’s finances.
In March, the car-selling site was ordered to repay $8 million in loans by the U.S. Securities and Exchange Commission.
The agency said the loans were issued in 2009 and 2010, before the company began selling cars and had a negative impact on its business.
In July, Beeps’ cofounder said the website’s debts were “so enormous that we’ve started taking on additional lenders and investors in order to make the site’s finances sustainable.”
The Hill said it obtained the loan information from an investor who provided the information to the Hill.
The company has said the loan amounts were accurate.