Home Equity Lending to Small Business Owners Up Since 2021
May 5, 2022
Small-business owners are turning to home equity to help finance their expenses, a trend that increased noticeably during the pandemic.
A provider of home-equity lending alternatives, Hometap, reported it made more than three times as many investments in dollar value with its small-business-owner clientele in the first quarter this year compared to the three months in 2021, increasing deployment to approximately $8.5 million from $2.3 million.Since 2018, the Boston-based fintech has assisted small-business owners with more than $30 million in home-equity transactions.
Hometap’s investment product allows clients to tap into their home’s equity in exchange for a percentage of the future value of the property. Unlike small-business loans or home-equity lines of credit, no interest or required monthly payments are required for 10 years, the company said.
This article originally appeared on National Mortgage News. Read the full article here.