2 months ago
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Upmarket lender Ultra Financier is adding private credit as a new line of business, in addition to making loans to high net-worth clients.
CEO David Henriques says its meant to shake off the company’s present image, which he described as being akin to a ‘luxury pawnshop’.
“We want to veer away from the narrative that it is only luxury lending that we do. We want to get away from the idea where people would think that it is a Iuxury-lending pawnshop where you bring a Rolex and you get some money to borrow,” Henriques said in an interview with the Financial Gleaner.
Ultra Financier is a 100 per cent subsidiary of microlender Dolla Financial Services Limited that launched into business December 2022 as a lender to wealthy clients whose personal assets would become collateral for the debt.
Private credit is debt issued by non-bank lenders who negotiate loan terms directly with companies or individuals. It’s a growing field in which Sygnus Credit Investments is one of the most substantial players.
Ultra will take the same approach in collateralising the debt as it does for the loans it already makes.
“Just as we’ve been doing, we’ll use cars, property, houses, equipment, stocks and bonds, in the same way,” Henriques said.
He disclosed that over the period of Ultra’s operation not many clients had offered up their personal luxury items as collateral.
The company’s expanded focus will also see a change in the terms it offers.
Previously, loans from Ultra Financier had a floor of $500,000. But that has now been raised to $5 million, Henriques said, facilitated by an arrangement with investment company Mayberry.
“We have an arrangement with Mayberry, who will continue to fund us; but at some point, we will have to examine the possibility of a fundraise for Ultra, separate and apart from our parent company Dolla,” Henriques said.
The options are still under discussion, including the possibility of taking Ultra Financier public via an IPO, or initial public offering of shares, and listing on the stock market, he said.
Ultra Financier operates from Barbican in Kingston, which doubles at its head office, and has a second branch at Fairview Centre, Montego Bay. After 17 months of operation, Ultra Financier has grown its loan book to $1.27 billion, Henriques said.
“We’d like to be at $2 billion by the end of the year and by the end of next year we are looking at doubling that,” he said.
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