Flexigroup underwrites fintech loans
(31 May 2016 – Australia) Finance and leasing company, FlexiGroup will become the sole funder of West Australian based Kikka Capital's business loans, it has been revealed.
FlexiGroup told the Australian Securities Exchange earlier this week that it had invested A$2 million of equity into Perth-based Kikka Capital and provided it with a funding line. The firm will also use a "white label" version of Kikka's platform to trial unsecured lending as a complementary offering to its secured asset financing operations.
Kikka Capital founder David Brennan said that over the next 12 months loan volume could rise to A$35 million and this could triple to A$100 million the following year and $280 million the year after that. "The way our trend is heading, we are growing very, very rapidly," he said.
The fintech lender provides loans of up to A$100,000 at interest rates of between 2 percent and 9.75 percent per month, depending on borrower risk, for the first two months, then 1 per cent per month for the third to sixth month for all customers.
According to FlexiGroup's new chief executive Symon Brewis-Weston, the rate at which Kikka grows is dependent on the performance of its loan book which would be assessed over the next 18 months.
FlexiGroup will also apply Kikka's credit algorithm to its historical loan book to build a better picture of its ability to assess credit risk.
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