Fronted, a rental deposit lending platform, has raised £20m in debt and equity funding round led by Fasanara Capital.
The proceeds from the latest funding will be used to develop an app for Fronted users.
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Using the app, renters will have access to Fronted’s new ‘lifetime deposit’ offering, which gives them access to new deposits when they are moving into a new place.
The new offering works by securing the return of a renter’s old deposit to Fronted and offering a new deposit in advance and full.
Renters can pay off the deposit finance within 10 weeks using a portion or the entire return of the old deposit.
Fronted CEO Jamie Campbell said: “We think asking renters to come up with another five weeks rent when they already have money protected is ludicrous. Renters should be allowed to pay a new deposit with the one they already have.
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By GlobalData“When a renter moves between properties, there is almost always the need to pay two deposits. On average, deposits are £1,300, and renters have a double deposit overlap of 35 days.”
Fronted’s portfolio of products also includes a Deposit offering, which allows new renters to borrow a 12-month loan for rental deposit.
Fasanara Capital CEO Francesco Filia said: “The innovation that Fronted brings to the rental market can benefit all participants from renter to agent to landlord, helping remove a key friction and reducing risk. We are delighted to back yet another innovative fintech that is solving a real pain point for consumers.”
