In essence, Fronted helps renters finance their rental deposits. Its credit product is designed to finance deposits directly.
The start-up is confident it can lend more cheaply at a lesser risk compared to players already tapping the rental market with insurance-based offerings.
It says that unlike its competitors, renters can pay their original deposit over 12 months.
“We believe the insurance model doesn’t protect tenants and is prone to miss-selling… It is also expensive. For customers bridging between deposits and moving multiple times the fees stack up.”