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The debt funders of the ASX-listed lender have agreed to extend and double its auto finance warehouse facility.
Personal lender MONEYME has confirmed that it has secured a deal with its debt funders to double its auto finance warehouse facility – Autopay – from $375 million to $750 million.
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According to the non-bank lender, the funding will be used to provide more originations of its car loan product, Autopay.
The agreement included financing of channel commissions related to loan originations in the structure, which has released just over $10 million of unrestricted cash into the business.
The lender said that the new terms mean that the loan book growth in the Autopay warehouse was “significantly more capital-efficient”.
It added that the expanded facility would help increase its originations and result in greater economies of scale and profitability moving forward.
Clayton Howes, MONEYME’s managing director and chief executive, said: “This is a significant step in optimising MONEYME’s funding program that allows improved efficiency of capital allocation and risk-adjusted returns.
“The car loan market is a strategic focus for MONEYME and this funding increase is an important growth enabler for our Autopay product. The release of unrestricted cash will further support the growth of our business.”
MONEYME added that it had already increased loan originations in 1H24 and expected to increase originations growth when macro conditions improve, with the car finance market a strategic focus.
It last year lauched discounted rates on loans for electric vehicles to support Autopay’s growth due to rising demand for electric vehicles (EVs).
[Related: MONEYME launches discounted EV loans]
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