The non-bank lender has entered into a corporate debt facility agreement, with plans to grow its business.
Plenti’s new facility from an unspecified Australian funder has been linked to the size of its securitised loan portfolio and is expected to grow in line with its loan book.
The facility will initially be drawn to $18 million.
Funding from the facility will be primarily directed to supporting growth in Plenti’s warehouse and ABS funding structures.
Daniel Foggo, chief executive of Plenti commented the facility will provide a “cost-effective, flexible and non-dilutive solution to funding” the group’s loan portfolio growth.
“Consistent with Plenti’s general approach, this facility has been [structured] in an innovative way and provides us with much greater flexibility than more traditional corporate debt funding structures,” Mr Foggo said.
“With this funding facility in place and Plenti having reached monthly cash NPAT [net profit after tax] profitability, we are better placed than ever to pursue the growth opportunities in front of us and to achieve our medium-target of reaching a $5 billion loan book.”
Plenti has previously flagged that it has ambitions to hit a $5 billion loan book in the next few years, with brokers to play a key role.
The group has invested heavily in its technology and data capabilities, with the aim of slimming down turnarounds.
Plenti’s loan book ended 2021 at $1.1 billion, 118 per cent higher than a year earlier and 21 per cent above the September quarter.
The lender also established a $250 million automotive warehouse facility in December, with Westpac as senior debt funder and the Clean Energy Finance Corporation providing mezzanine finance.