MoneyMe (ASX:MME) share price edges higher. Here's why

The MoneyMe Ltd (ASX: MME) share price is rising after announcing increased funding commitments from an Australian Bank. Here's the details.

| More on:
surging asx share price represented by piggy bank with rocket attached to it

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The MoneyMe Ltd (ASX: MME) share price is edging higher in late morning trade. This comes after the company announced its warehouse facility has received increased funding commitments from a major Australian bank.

At the time of writing, the digital credit company's share price is up 1.7% to $1.53.

Increased funding commitment

The MoneyMe share price is in the green today after reporting an update that has investors pleased.

According to its release, MoneyMe advised that one of the 'big 4' Australian banks has provided an increased senior warehouse commitment of $150 million. This is a 50% increase on the previous $100 million that was backed by the group's major funder.

Under the new arrangement, it's expected that the expanded commitment will drive future growth in loan originations. Altogether, MoneyMe's warehouse structures stand close to $300 million.

More on MoneyMe's warehouse facility

Created in September 2020, the company's warehouse funding facility provides customers with lending products. Consequently, this allows MoneyMe to grow its business through loan originations. In short, the business profits from customers, as does the bank from financial technology.

Interestingly, it was a major Australian bank, Westpac Banking Corp (ASX: WBC) that helped established MoneyMe's line of credit.

What did management say?

MoneyMe Managing Director and CEO Clayton Howes commented on the positive news:

The increased commitment in MoneyMe's warehouse facility is outstanding news and stems from exceptional growth in high quality loan originations. We are delighted this successful partnership with an Australian "Big 4" bank has been extended. It gives us both funding and confidence to meet the increasing demand from Generation Now by creating innovative products that resonate with them.

MoneyMe share price performance

Over the last 12 months, the MoneyMe share price is down around 7% reflecting subtle gains for investors. Indeed, the company's shares hit a low of 50 cents at the end of March. However, they have since been moving on a slow upward trajectory.

Finally, based on the current share price, MoneyMe commands a market capitalisation of roughly $265 million.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

a smiling young woman carrying a pile of books, indicating a lifting share price for book sellers
Share Market News

Here's how the ASX 200 market sectors stacked up last week

ASX utilities shares led the 11 market sectors for a second consecutive week.

Read more »

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Share Market News

Here's when Westpac says the RBA will cut Australian interest rates

Are interest rates coming in 2024 or 2025?

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A young boy sits on his father's shoulders as they flex their muscles at sunrise on a beach
Opinions

Where I'd invest $10,000 in ASX growth shares right now

These are my top picks for growth.

Read more »

A man with his back to the camera holds his hands to his head as he looks to a jagged red line trending sharply downward representing the ASX tech share sell-off today
Share Market News

How likely is a stock market crash in 2024?

Stock market crashes are a painful, but inevitable, part of investing.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Resources Shares

Goldman Sachs says this ASX 200 mining share is in for a 33% whack

The top broker predicts a fairly miserable 12 months ahead for this diversified miner.

Read more »

A woman wearing a top of gold coins and large gold hoop earrings and a heavy gold bracelet stands amid a shower of gold coins with her mouth open wide and an excited look on her face.
Opinions

I believe this ASX 200 stock can DOUBLE its profit in 5 years

This stock has enormous profit growth potential in my eyes, here’s why.

Read more »

Top ten gold trophy.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors endured a sour end to the trading week today.

Read more »