SEPTEMBER 15 2021

Published in the Australian Financial Review

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Non-bank lender TechLend only launched two months ago, but already the fintech has received $100 million of bridging loan applications, and banks are understood to be lining up to provide it with a new debt facility.

Despite lockdowns in Melbourne and Sydney, home buyers on the east coast have demonstrated the most demand for its bridging product, which enables home buyers to more easily buy a property before they sell.

The company, which was is co-founded by former MoneyMe head of strategy Aaron Bassin and mortgage broker Nick Jacobs, is now looking to secure a $200 million debt facility to support its growth, in addition to fresh equity capital to support its product development initiatives.

The move comes after it banked $50 million in venture debt funding from Silicon Valley-based fund Partners for Growth in early August.

The non-bank lender offers interest-free (for three months) bridging loans with same-day pre-approval, via a fully paperless online process.

Rather than charging interest, TechLend charges a set-up fee that starts at 1.99 per cent. For a $1 million loan, this would equate to $19,900.

The fintech loans up to $3 million for a maximum of six months, and no repayments are required until either the loan matures, or the property sells.

“Lockdowns are seemingly having no effect on the current housing boom as virtual inspections and auctions become widely accepted,” Bassin said.