Rent.com.au Secures Funding for RentBond Product

Rent.com.au, Australia's leading specialist rentals marketplace, has secured a credit facility worth up to A$10 million to expand its RentBond product.

RentBond is a loan product that bridges the gap and gives tenants financial wiggle room while looking for a new apartment. The service also includes a 21-day interest-free guarantee for tenants who repay the loan quickly.

"Have you ever moved into a new rental and needed to pay the bond before you received your old bond back?" says Rent.com.au's RentBond landing page. The company vows to send funds to applicable tenants within 24 hours to cover the cost of moving, while circumventing the return of the deposit from their previous rental.

The RentBond product has a rating of 4.8 stars, according to the company.

Jan Ferreira, CEO at Rent.com.au, said:

"Our RentBond product has proven to be very popular, with significant inreases in customer demand over the previous two years. By bringing the funding for RentBond 'in-house' with this new credit facility, [we have] the opportunity to earn a greater share of the profits, while also improving the customer experience and our capability to cross-sell our other products.

"Based on a typical RentBond loan, we expect to generate almost six [6] times the revenue compared with what we receive today. This revenue is eanre over time rather than up front, which improves the consistency of our revenue streams. For example, a customer with a typical 12-month loan funded in January still provides income to the Group in December. We can also leverage our existing RentPay capability and cost base to service RentBond with minimal additional staffing required.

"We already have the customer demand, the product-specific experience within our management team, and the approprate licensing, compliance and payments capability from our RentPay platform to manage this. With a clear path to the funding achieved, we have locked in the final piece we need to drive the Group to profitability."

Rent.com.au recorded revenues of A$923,000 in its third quarter financial results, up 5% year-on-year. Rent's missive to the market also included news of a fully underwritten entitlement issue, which went ahead on April 29th, raising A$1.7 million before costs. This capital injection is expected to support ongoing operations and strategic initiatives.

However, profitability remains an issue for the micro-cap, publicly listed business. While revenue neared A$ 1 million, net losses were circa A$500,000 for the quarter.