In exchange, PropPay charges landlords a set-up fee and a monthly administration fee of 0.65% of the rent paid in advance. These funds can be accessed within 48 hours following its approval.
“We are very confident of the future success of PropPay and are delighted to back an alternate funding source for landlords,” said Matthew Johnson, director of Marketplace Finance. “PropPay is good news for mortgage brokers as they can gain a new revenue stream through providing landlords with another valuable service as their tenants emerge from the COVID lockdowns.”
PropPay also tailors the solutions to individual needs. For instance, landlords can request that the advance rent come periodically rather than in lump sums, depending on their preference.
Marketplace Finance’s investment in PropPay is in line with its mission to deliver radical lending solutions to brokers and their clients.