"This Series A funding is a significant milestone in Selina Finance’s mission to offer homeowners flexible and affordable credit."
Business lender, Selina Finance, has completed a £42 million Series A fundraise.
The funding includes £12 million in equity and £30 million in debt lines and will boost the company’s growth as it looks to expand its product offering.
The lender is preparing to enter the consumer lending market later this year, subject to regulatory approval. In addition, the London-based fintech has secured £30 million in debt lines that will be used to support more SMEs and, post-regulatory approval, consumers across the UK.
Founded in 2019 by Andrea Olivari, Hubert Fenwick and Leonard Benning, Selina Finance offers overdraft-style credit facilities up to £1 million which allow SMEs and consumers to borrow against the equity tied up in their homes or investment property. The solution is fee-free – with no setup, early repayment, or valuation fees - and allows borrowers to draw (and repay) funds whenever they choose, and pay interest on what is outstanding.
Selina Finance's credit facilities are secured against physical property, meaning customers can borrow up to £1 million with rates starting from 4.95%.
Selina Finance works with more than 200 commercial finance and mortgage distribution partners across the UK.
Co-founder, Leonard Benning, said: “We’re bringing a completely new product to the lending market which, unlike a conventional loan, offers customers real flexibility. Our customers can save time and money by only drawing down and repaying when they need to without the need to re-apply, plus the product is feeless and transparent which is what customers have come to expect in the 21st century.”
Co-founder, Hubert Fenwick, commented: “Homeowners deserve to be able to unlock the value tied up in the home they’ve worked so hard for, both at an affordable price and in a flexible manner. We want to help people tap into their real estate wealth whenever they need to borrow funds, by making the whole process, from application to funding, as seamless and as fast as possible."
Co-founder, Andrea Olivari, added: “This Series A funding is a significant milestone in Selina Finance’s mission to offer homeowners flexible and affordable credit. Despite the uncertainty and disruption caused by Covid-19, our investors have demonstrated their belief in our unique proposition and the team we have built to bring our vision to the UK market.”