Selina Finance, a company that provides loans to SMEs in the form of flexible credit facilities, has raised USD 53 million.
Flexible credit facilities refer to the fact that the user pays back only what he/she borrowed, and they do this over time, rather than in one lump sum. Selina’s technology operates a two-sided marketplace: on one hand, its algorithms process details about your property to determine its market value and how that will appreciate (or depreciate), and on the other, it’s evaluating the health of the SME business, and the purpose of the loan, to determine whether the borrower will be good for it.
The company says it plans to raise significantly more debt in the coming months as its business expands, according to TechCrunch.
London-based Selina plans to use the funding to continue growing its business in the UK and to start the process of opening to other markets in Europe. Currently, Selina focuses on SMEs whose applications qualify as ‘prime’, meaning that they can borrow up to GBP 1 million in funds, with interest rates starting at 4.95% APR.
Selina is also in the process of getting a license to expand its offering to consumer borrowers, too.
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