Parties associated with a minority shareholder of online mortgage platform LoanFlare have put the company into administration.
The Sydney-based start-up, founded by David Kim and Joshua Shen, was initially built to empower consumers to self-service their home loans by having access to the same loan products and technology used by brokers.
The software, similar to a CRM system, enables clients to enter applications and upload documentation to their loan applications, and ties in to aggregator CRMs to generate disclosure documents and for lodgement.
LoanFlare later decided to partner with brokers, rather than compete with them, by offering a digital solution to provide efficiencies to the third-party channel.
On the broker side, it also automated workflows and data entry, provided actionable intelligence and featured a comprehensive audit trail.
According to the founders, the administrators were called in over a $20,000 debt.
When asked to comment, Mr Kim and Mr Shen responded: “We are taking action to find a quick and simple solution. The company had in its bank account at the time of the appointment of the administrators more than the amount owed to the secured creditors.
“It’s absurd how a company can be put in administration in such circumstances when the company was willing and able to pay.
“We will continue to work diligently in delivering a great product for our early adopters and customers."
[Related: Fintech start-up enters third-party channel]