Magen Credit, a company specializing in non-bank financing and credit solutions for households, has completed a fundraising round of NIS 117 million for its real estate-backed credit provision services. The funds will be used to provide real estate-backed credit for households.
Four years ago the Israeli government approved and implemented an Israeli credit score system, which has given rise to a burgeoning credit services market in the country that, though still in its infancy, is picking up momentum rapidly.
"The investment in Magen Credit is an expression of confidence in the company and its ability to grow and meet a real need in the market, especially in the current climate, in which significant players in the non-bank credit market are preparing for consolidation,” said Hadar Tamarkin, Magen Credit’s CEO.
How has Magen Credit helped clients with credit?
Established in 2019, Magen Credit holds an extended credit license at the highest level from the Capital Market Authority. The company provides a variety of customer-tailored credit services linked to real estate value, utilizing its proprietary forecasting technology to enable risk reduction for both borrowers and loaners.
“In recent years, we have helped many clients with extremely complex cases, including receiverships, divorce cases, bankruptcies, multiple loans, bounced checks and more. Our unique model offers a personalized plan, which the client can meet, recover, and qualify for a mortgage from the banks,” said Tamarkin.
One service of note offered by the company is the subsidization (in relevant cases) of a financial recovery model constructed for customers in partnership with the Association of Consultants and Coaches for the Family Economy in Israel. The service includes financial support from professional advisors from the association and the construction of a customized monthly repayment plan for a period of one to five years.
Gabi Low, founding partner of the Arbel Fund, noted the importance of such services given the current market instability brought on by geopolitics and pandemic aftershocks. "In the complex economic reality in Israel, there has been a significant increase in the demand of households for non-bank credit,” he said. “We believe that Magen Credit will lead this field in a professional and responsible manner, under the strictest regulation.”
The maturing credit market is likely to provide Israelis with an increasing variety of loan options as the market falls into step with those seen in the United States and Europe. Future months will certainly give rise to credit service-oriented companies such as Captain Credit, an app developed by Dun & Bradstreet which enables Israelis to quickly and easily check their credit scores.
Captain Credit’s CMO, Anat Gissin, noted that there may still be some turbulence ahead for new companies in the space, brought on by an aptly Israeli amount of red tape. “It's not simple. It takes a lot of effort and a lot of investment,” she said. “Working with the Bank of Israel requires heavy regulation.”