The personal lender has announced a $200 million warehouse facility, while flagging its intentions to proceed with an IPO when market conditions are ripe.
SocietyOne has doubled its funding capacity after securing a $200 million warehouse facility, with Westpac acting as both the arranger and senior financier.
According to the digital finance platform, the warehouse facility is scalable, and would provide lower-cost funding, enabling it to “continue to deliver lower rates to borrowers”.
The injection of funding has followed the recent launch and pricing of a $182 million asset-backed securities (ABS) bond issue, which was backed by a pool of unsecured personal loans as collateral.
Secured loan product goes public
In addition, SocietyOne has released its secured loan product directly to consumers after recently launching through the broker channel in early 2021.
The product allows eligible borrowers to access a larger loan amount up to $70,000 under loan terms of two, three, five, or seven years, by pledging security such as a new or second-hand vehicle or boat.
Previously, the lender allowed customers to borrow up to $50,000 on an unsecured personal loan of up to five years.
The security will only be required to cover a portion of the loan amount (that is, the difference between $50,000 and the maximum cap of $70,000).
Borrowers could also receive a 1.00 per cent discount on the borrower rate as acknowledgement of the lower risk afforded by the security (with the lowest rate starting from 5.99 per cent).
Commenting on the developments, SocietyOne chief executive Mark Jones said: “Throughout 2021 SocietyOne has continued to focus on building the highest-quality portfolio of personal loans, driving sustainable growth through new and attractive products, and building even more infrastructure and support for our distribution channels.
“Our newly doubled funding capacity will support these growth initiatives both in the medium and the long-term, while helping us to reduce our cost of funding and improve our funding diversity.
“In addition, the new secured loan product will enable us to increase accessibility and flexibility for our customers, while maintaining our high credit quality for our investors.
“We received enormously positive feedback on this product when delivered via our broker partners, and we have every confidence it will be just as well-received by our direct customers.”
SocietyOne IPO-ready, says CEO
Mr Jones had previously flagged that SocietyOne could become a listed company via an IPO later this year, adding that it is continuing to explore a “step change” in its funding strategy as it seeks to raise capital over the next 18 months.
He has now signalled to The Adviser that SocietyOne is currently “IPO-ready”, stating: “Our intention is to proceed as soon as market conditions are optimal and will yield the best result."
SocietyOne reported that broker channel originations have grown by around three times following the appointment of former MyState banking general manager Tony MacRae as chief commercial officer and former Mortgage Choice and Aussie sales manager Tommy Lee as head of broker distribution in July.
At the same time, SocietyOne appointed former Capital Assist senior credit analyst Melissa Romeo as Victorian business development manager (BDM) and promoted Mat Chaffey to national BDM and broker support manager.
[Related: SocietyOne expands broker channel support]