The MoneyMe Ltd (ASX: MME) share price has raced out of the gates to be up by as much as 18.63% in early trade. This morning, the company provided a market update on its business operations and also announced the forthcoming launch of a new product offering.
MoneyMe is still relatively new to the ASX after publicly listing in December last year at an initial public offering price of $1.25. The company is a digital consumer credit business, leveraging its Horizon Technology Platform and big data analytics to deliver an innovative loan offering to online-ready consumers.
May 2020 business update
This morning, MoneyMe revealed that its diversified customer base and target orientation growth strategy continues to minimise COVID-19 credit risk. As a result, the company has seen a continuing downward trend of payment requests due to the pandemic.
The majority of customers who previously sought hardship relief have resumed making repayments, with only 1.7% of receivables having payments deferred.
MoneyMe also remains confident in establishing a new funding facility. If secured, the facility will help to support asset growth and lower funding costs. However, timing is a slight sticking point. The execution of a new facility is likely to be delayed to the first quarter of FY21 due to circumstances relating to COVID-19.
In the meantime, the company has secured a further 18 months of continued access to its existing trust funding facilities to provide funding certainty through to November 2021. MoneyMe notes that its existing facilities and cash on hand leave the company well-placed for origination funding and growth opportunities.
New product launch
Along with the business update, MoneyMe also announced that a new product offering, RentReady, will be officially launched in June. RentReady is a first-to-market product designed to support landlords with capital spend requirements and any short-term rent or operational requirements.
The product features a line of credit of up to $15,000 administered by property managers for landlords, with repayment over a period of 24 months. The credit can be used by landlords for a number of different options, including general service, maintenance, and improvement spend, as well as to cover shorter-term rent shortfalls – a timely option in the current environment.
MoneyMe highlighted the highly complementary nature of RentReady to another of its key offerings, ListReady, which assists residential property vendors with the costs of marketing their home for sale. ListReady has more than 240 agencies and 1,500 agents signed up to support vendor sales.
At the time of writing, the MoneyMe share price is currently sitting 10.45% higher for the day at $1.22, reducing its year-to-date fall to 15.86%.
