Selina Finance re-launches business loan offering with extended term

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London-based digital lender Selina Finance announced today that it has enhanced its business lending offering by increasing its maximum loan term to 10 years. The company offers ‘flexi-loans’ up to £1 million by allowing business owners to borrow against the equity locked up in a home or investment property. Selina Finance has also announced changes to its property investor product to help investors release equity from portfolio properties quickly and easily.

Andrea Olivari, Co-Founder of Selina Finance, commented, “We pride ourselves on offering credit that is both flexible and affordable, enabling borrowers to easily unlock the value tied up in their property. Part of our vision is to make business lending as affordable as a mortgage with the flexibility of an overdraft, and these improvements to our product offering bring us one step closer to that.”

According to Selina, the improved 10-year offering will operate as a ‘flexi-loan’ within the first 5 years, after which it reverts onto a full repayment schedule for the remainder of the term. The property investor product, which works as a revolving credit facility for portfolio landlords, will now lend up to 75% loan-to-value (LTV) against multiple properties held by an SPV or individual applicant.

The company has also enhanced its underwriting and valuations by moving to a cash-flow based underwriting methodology, which assesses affordability based on business circumstances.

Darvish Heshejin, VP Growth at Selina Finance, commented, “We’re excited to make our products more accessible to SMEs and property investors across the UK. We’ve been busy during lockdown listening to feedback from partners about how we can improve our offering and implementing all the necessary processes and policies to make it happen. As the economy begins its recovery from the pandemic, we think it’s a perfect time to see some real innovation in the SME and property lending markets.”