Lending expansion and new product to bolster Finbase

The new product will enable to Finbase to compete in the long-term property investment market, in particular to attract investors who want to hold rental properties.

Operating in this market hadn’t been feasible for Finbase until the Challenger partnership was finalised as its $300 million book was funded by wholesale investors – mainly high net worth individuals and family offices –with typically a one- to two-year investment horizon.

Finbase managing director Pernell Callaghan says the capital deal opens the door to a bigger market and a rise to $500 million in funds under management within six months. After that it hopes more funds will be available from institutional investor Challenger, although that hasn’t yet been discussed.

Finbase is already calling on the Challenger facility weekly for lending to SMEs, sole traders, business owners and established property traders. The non-bank lender does not do residential mortgages.