Upfront rent package offered by finance firm set to expand

Letting agents and landlords can access the equivalent of up to a year's rent through finance company Wectory.

rent upfront

A finance company that gives lettings agents and landlords upfront rent payments is expanding its offering.

Agents who sign up with Wectory can receive the equivalent of several months’ or a year’s rent in advance without having to take loans.

Now, Wectory says it has ‘new capacity’ for September, and can offer agents and landlords finance to help with cashflow problems. It provides an alternative to having to sell or release equity, according to Wectory, which says it works with thousands of landlords.

Jamie Osborne, Wectory’s head of sales, (pictured) says: “Tenants have been under pressure for some time.

“With wages and spending power relatively lower than just a year ago and inflation seemingly spiralling out of control, landlords are increasingly having to raise rents at renewal to fund the increasing cost of maintenance and protect their profitability.

“Lending is becoming more restrictive, and so expansion of portfolios is becoming more of a challenge – so we’re seeing many, many landlords with capital all tied up in assets, having to sell or release equity to fund a new purchase or development or even to maintain what they have.

“This is naturally projected to put letting agency income at risk. With this in mind, Wectory is able to unlock landlord assets with a view to stabilising a challenging market.”

Cash injection

Osborne said Wectory is seeing landlords renew tenancy agreements early in order to secure an advance. “And this in turn means more security for the tenant, more fluidity for the landlord and their ability to increase their portfolio and more properties for the agent to manage and let on their behalf,” he said.

“We offer lucrative reward schemes for partner agents for using our services, and are happy to also offer management fees upfront to improve cash flow to partner businesses.”

Wectory works through an app downloaded by customers, with finance agreed within 48 hours.

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