DomaCom teams up with peer-to-peer lender
Crowdfunder company DomaCom has announced a partnership with a peer-to-peer lender that offers loans to small to medium sized businesses.
DomaCom chief executive Arthur Naoumidis says DomaCom’s partnership with ThinCats Australia will give advisers the ability to be on both sides of property transactions by creating leveraged book builds.
“This also provides the 350 lenders on the ThinCats platform the opportunity to gain exposure to property assets and the ability to lend funds at an attractive interest rate with a lower risk profile,” Mr Naoumidis said.
ThinCats Australia has been operating in Australia in the last 18 months and is a peer-to-peer lending platform for secured business loans to small and medium sized enterprises.
Its chief executive Sunil Aranha said the link with DomaCom will allow its lenders to gain exposure to both property and new loan opportunities.
Mr Naoumidis said the loans on the platform will have an initial loan to value ratio (LVR) of no more than 50 per cent.
“The loan must be positively geared – that is, the rent must exceed the loan repayments and all other costs,” he said.
“The default rate for the fund borrowing the money is a low 3.5 per cent above the ANZ overnight cash rate. This currently equates to 5.25 per cent per annum.”
