LendInvest has renewed a £300m financing agreement with Barclays, HSBC and France's BNP Paribas, as the property fintech aims to return to profitability. The AIM-listed company announced that the revolving warehouse financing agreement, equally shared between the three banks, has been extended for an additional three years on what it referred to as improved terms.
LendInvest stated that this facility would bolster its mortgage business, particularly focusing on the firm's shorter-term bridge financing products like bridge-to-let and refurbishment and retrofit, as reported by .
These offerings enable property investors and developers to finance the acquisition and enhancement of properties, such as upgrades to meet minimum energy efficiency standards.
Rod Lockhart, CEO of LendInvest, said the renewed financing: "Highlights the confidence that investors have in Lendinvest's business strategy and the capability of our mortgages division to drive sustained growth". He added: "This renewed facility reinforces our commitment to supporting the º£½ÇÊÓƵ housing market by offering propositions that enable stock upgrades through retrofit financing, while also expanding access to flexible mortgage products like our bridge-to-let range,".
This announcement follows LendInvest's disclosure last month of a £500m investment from JP Morgan. The Wall Street behemoth extended its existing deal by an additional £500m, bringing its total funding to £1.5bn since first investing in LendInvest in 2021.
Since its listing on the London Stock Exchange in July 2021, Lendinvest's share price has plummeted by 87 per cent. The company operates a digital marketplace for property finance.
In July, Lendinvest disclosed a swing to a £27.3m pretax loss for the year ending 31 March 2024, a stark contrast to the £14.3m profit reported the previous year.
The º£½ÇÊÓƵ mortgage market has been wrestling with a drop in demand as increased interest rates deter borrowers. However, a recovery is anticipated due to expected monetary policy easing from the Bank of England.
Lendinvest anticipates returning to profitability in the 2025 financial year.
Other significant investors in the firm include Citigroup and National Australia Bank.
