Nectar, a company that advances cashflow to short-term rental owners and operators based on their financial performance, has closed a $25 million credit facility.
Coromandel Capital is providing the funding for Atlanta-based Nectar, and the startup plans to use it to provide short-term rental owners and operators with advances on their cashflow.
Advances will go toward renovation, remodeling and/or down payments on additional properties.
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Nectar says it’s addressing the challenge for short-term rental operators who “generate strong cashflow, but face a challenging financing environment.”
The company has already provided $3 million to operators across nine U.S. states.
Derrick Barker, co-founder and CEO of Nectar, says: “Nectar is committed to building a better solution for short-term rental entrepreneurs who are ready to grow their portfolios. This facility with Coromandel Capital will help us fund more of the entrepreneurs in our pipeline, and we are excited to establish a partnership with a team that so fully understands and embraces our vision.”
Nectar is one of a new breed of companies tapping into the investor appetite in the short-term rental marketplace while helping operators lower the barriers to entry.