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- MoneyMe (MME) has extended a senior warehouse facility with an Australian Big Four bank by $50 million ahead of its upcoming half-yearly report
- The digital lender has extended a senior funding commitment with Westpac, initially signed in September 2020, from $100 million to $150 million
- The initial facility significantly cut warehouse funding costs for MME, and today’s extension has the same terms as the September deal
- The funding extension is a major vote of confidence for MoneyMe’s tech and credit quality from the major Australian bank
- It gives the company more runway for growth and stronger business economics even as it maintains the ability to keep prices for customers low
- Shares in MoneyMe are trading 3 per cent higher this morning at $1.54 per share
MoneyMe (MME) has extended a senior warehouse facility with an Australian Big Four bank by $50 million ahead of its upcoming half-yearly report.
The digital lender said the funding commitment signed with Westpac in September 2020 has been bolstered by 50 per cent, with senior funding increased from $100 million to $150 million.
According to MoneyMe, the initial two-year, $167 million facility was a significant reduction in warehouse funding costs for MME.
The facility has a rate below 3.95 per cent per year plus the bank bill swap rate (BBSW) on a full-drawn basis — taking combined warehouse loan asset funding costs to less than 5 per cent per year plus BBSW.
Under the terms of the deal, Westpac will provide senior funding, while the Australian Office of Financial Management (AOFM) will provide mezzanine funding.
Today’s increase in senior warehouse commitments from Westpac is on the same terms as the initial funding deal from September.
MoneyMe Managing Director and CEO Clayton Howes said the company is “delighted” to have had a successful partnership with such a major bank extended.
“The increased commitment in MoneyMe’s warehouse facility is outstanding news and stems from exceptional growth in high-quality loan originations,” Clayton said.
“It gives us both funding and confidence to meet the increasing demand from Generation Now by creating innovative products that resonate with them,” he continued.
MoneyMe offers a range of low-cost, digitally-based loan products and credit cards to consumers.
The company’s tech works to cut out the middle-man and replace traditional loan brokers by using artificial intelligence when approving loan applications. This means the whole application process takes just five minutes for consumers and, given the digital nature of the business, can be completed anytime and anywhere.
Today’s extended loan facility is a major vote of confidence in MoneyMe’s business model, originations momentum, and credit quality from the major Australian bank.
For MoneyMe, the extended facility gives the company more runway for growth and stronger business economics even as it maintains the ability to keep prices for customers low.
Shares in MoneyMe are up 3 per cent at 10:45 am AEDT, trading at $1.54 per share.
