N1 Holdings Limited (ASX: N1H or the “Company”) is pleased to announce that it continues to expand its SME lending capacity. Since its last announcement concerning available capital for lending on 7 September 2023, the Company has continued to increase its debt capital funding resulting in the total lending capital that the Company can access and manage exceeding $135 million.
The Company currently holds approximately $110 million of direct lending loan receivables and has a strong pipeline pending settlement. The sources of the Company’s lending capital under management comprise of balance sheet capital, debt facilities and capital managed under the Company’s SME mortgage funds. The Company’s SME mortgage funds are wholesale, property-backed pooled mortgage funds that specialise in short-term SME lending, typically providing loans with a 6 to 36 month maturity and are managed by N1H via its wholly-owned subsidiary, N1 Asset Management (AFSL 477879). SME lending by the Company and its SME mortgage funds is secured with mortgages over Australian residential and commercial real estate predominantly based in NSW, VIC, QLD, and SA.
N1H’s Executive Chairman and CEO Ren Hor Wong says: "We are in regular communication with investors, HNWIs, family offices and funds, seeking to raise capital to expand our lending capacity to meet increasing demand. The team is excited about this new round of funding, we managed two rounds of raises in recent months, a reflection of investors' trust in N1H to manage their debt investment and the growth in private credit market.”
“We have just released our latest quarterly report, demonstrated strong cash flow and revenue growth, albeit stable profitability due to rising costs of fund from the 12 rate rises. The Company is however resetting its net interest margin (NIM) while the loan book is being refreshed with new pricing and an average loan term of about 7 months. The Company remains very committed into third party broker channels to ensure the extension of our growth trajectory.”
