Aussie fintech ups the ante for access to rent capital
A business that aims to empower property investors to do more with their rental income has received a $9 million boost.
Futurerent enables property investors to access up to $100,000 of rent in advance in just two business days, with founder Godfrey Dinh explaining that the business’ aim is all about “empowering property investors with a simpler way to cash out and access the money they need to grow their wealth”.
“We’ve asked investors what they would rather — $500 a week, or $52,000 in advance? For most property investors, getting up to two years’ rent in advance is a no brainer,” he shared.
“Our clients are turning their rental income into investment capital so they can do more with their rent.”
According to Mr Dinh, who was the former Deutsche Bank Australia vice-president before he founded Futurerent back in 2019, “a significant portion of our clients have the savings to meet their needs, but prefer to maintain their savings”.
He explained too that many property investors want to avoid the complexities of dealing with the banks, stating that while the banks are good at helping owner-occupiers with their home loans, “Futurerent provides a much better experience for property investors”.
According to a statement revealing the recent fundraising efforts, the $9 million in funds will help the business expand its national presence and enable it to launch new products and build further integrations.
The news of the $9 million raise comes after the fintech platform reported a 10-times increase in its book size over the last financial year while increasing the total rent advanced to property investors by 11-times.
“Futurerent has identified that simple and affordable access to capital is the biggest barrier preventing property investors from creating wealth, and they have developed a ground-breaking solution,” said OIF Ventures co-founder and partner Jerry Stesel, who believes Futurerent has created a new financing category with its proposition.
He’s not the only one who sees value in the approach, with BridgeLane chief executive and founder Markus Kahlbetzer noting that Futurerent “provides a fundamental opportunity for property investors to access additional funding while debt markets are tightening”.
Adding that landlords can increase their funding capacity and work with our banking sector to increase their participation in Australia’s largest asset class, Mr Kahlbetzer expressed the belief that “that Godfrey and his team’s ability to execute on this novel funding model will also accelerate the ability for rentvesters to achieve their objective of getting into their desired home sooner”.
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