CreditLadder, a UK-based rental data provider, is now seeking £600,000 through its equity crowdfunding round on Seedrs. Launched in 2016, CreditLadder claims to be the first and biggest private rental data reporter in the UK with backing from HM Treasury. Through its platform, Tenants may use their rental expense to improve their credit score and get access to better finance deals, such as mortgage rates, as a result.
“CreditLadder aims to deliver financial fairness to tenants by ensuring their on time rent payment each month builds their Experian credit history. An improved credit history should allow tenants to save money, and ultimately may also help them on to the housing ladder. Until recently, we feel that tenants have been unfairly penalised as their on time rent payments haven’t counted towards improving their credit history, whereas mortgage repayments by homeowners have.”
Although it is seeking 600,000 through the Seedrs campaign, the company is actually aiming to raise up to 2 million through the round and other sources.
“As the business grows and attracts more tenants, letting agents and landlords to the platform, we will need to grow the team together with rolling out new products. We will also use the funds to add further partners, and are currently working towards getting a number of banks onto the platform during 2019.”
The funds raised on Seedrs will go towards the following:
- Existing operational costs (salaries, office space, banking fees) – 35%.
- Hiring new staff (marketing, customer services, technology, sales & product) and launching new products – 30%.
- Sales and Marketing activity – 35%.
CreditLadder is currently offering 8.45% in equity with a £6,500,000 pre-valuation. Since its launch, the campaign has raised nearly £400,000 from more than 200 investors. It is set to close at the end of July.
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