MA Financial (ASX:MAF) invests AU$35M in Funding.com

Image Source: © Allisgood76 | Megapixl.com

Highlights

  • MA Financial has provided AU$37.5 million debt facility to Funding.
  • Funding has identified a market need for short-term mortgage options that the large banks disregarded.
  • Unlike some major banks, Funding’s average turnaround time from application to settlement is three to five days.

Funding.com.au, a short-term lender, has obtained AU$37.5 million in debt and equity capital, positioning itself as a trustworthy non-bank lender in the financial sector. The large sum support has been given by services firm MA Financial Limited (ASX:MAF). 

Meanwhile, despite a positive update, MAF shares closed 4.173% at AU$7.350 per share today. In one year, the stock has soared by 45%, and in six months, it has surged by over 3%. However, the stock has been on a steady decline recently, with a 7% drop in a month.

Funding is Australia’s largest mortgage marketplace. It offers mortgages that are quicker, simpler and more reliable. Funding aims to revolutionise how Australians may obtain mortgages and invest in real estate.

Good read: MA Financial (ASX:MAF) net fund inflows touch AU$1B, dividend up 70%

Funding receives financial support

MA Financial, the first institutional debt investor in the online mortgage marketplace, will issue a senior debt facility to aid the firm scale its short-term mortgage finance operations and diversifying its capital base.

Source: © Webking | Megapixl.com

MA Financial Group is a financial services organisation. Since 2009, the firm has specialised in corporate advising & stocks, financing and asset management.

Funding has gotten further financial support. In addition to its AU$3.7 million Series A equity investment, EVP, Funding’s long-term anchor investor focused on marketplace businesses and early-stage business-to-business Software as a Service (SaaS) investments, contributed an additional AU$2.5 million. 

Furthermore, Funding had obtained both venture capital money and warehouse finance in November 2019. Equity Venture Partners (EVP), a prominent Sydney based venture fund that concentrates on hyper-growth technology businesses, contributed to the investment round.

Funding identifies market need

The firm recognised a market need for short-term mortgage options that were being disregarded by the large banks and were frequently serviced by unscrupulous lenders, leaving individuals in financial distress. 

Unlike some major banks, Funding’s average turnaround time from application to settlement is three to five days.

Conclusion

Funding, which was formed in 2015, has been a crucial player in the world of non-bank mortgage lending. This deal enables Funding to diversify its financial base.

Good read : Why are MA Financial (ASX:MAF) shares grabbing spotlight today?


 


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