Selina Finance, a UK-based online lender that provides secured home equity loans at competitive rates, announced on Wednesday it has relaunched its business loan proposition by doubling its maximum loan term to 10 years. This news comes less than a month after Selina Finance raised £42 million through its Series A investment round.
Founded in 2019, Selina Finance offers ‘flexi-loans’ up to £1 million by allowing business owners to borrow against the equity locked up in a home or investment property. The lender partners with over 200 commercial finance and mortgage distribution partners throughout the UK and has funded a range of customers, from entrepreneurs to established SMEs, as well as property investors.
Selina Finance reported that the enhanced 10-year offering will operate as a ‘flexi-loan’ within the first 5 years, after which it reverts onto a full repayment schedule for the remainder of the term. The platform also added a 5-year fixed rate option to give borrowers the certainty of a fixed rate over the ‘flexi-loan’ term. In contrast to other lenders, Selina Finance’s offering is feeless, with no setup, early repayment, or valuation fees. Rates start from 4.95%, much lower than rates typically charged on unsecured loans. Speaking about the new offering, Darvish Heshejin, VP Growth at Selina Finance, stated:
“We’ve been busy during [COVID-19 pandemic] lockdown listening to feedback from partners about how we can improve our offering and implementing all the necessary processes and policies to make it happen. As the economy begins its recovery from the pandemic, we think it’s a perfect time to see some real innovation in the SME and property lending markets.”
Andrea Olivari, Co-Founder of Selina Finance, concluded:
“Part of our vision is to make business lending as affordable as a mortgage with the flexibility of an overdraft, and these improvements to our product offering bring us one step closer to that.”