The Moneyme Ltd (ASX: MME) share price finished 11% higher today amid the company's announcement of a new warehouse funding facility with Morgan Stanley Australia as its partner.
The fintech company says the move will bolster Moneyme's Autopay platform for motor vehicle finance.
At market close, the Moneyme share price finished at $1.96 a share, up 11.05% on the day.
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Moneyme's response to company growth
According to today's announcement, Moneyme's new funding model will inject an additional $200 million into the company's "high growth Autopay product".
The partnership will secure funds at less than 3% above the BBSW (bank bill swap rate), used as a short-term benchmark rate.
Moneyme says the new facility will allow it to cut its lending costs.
It will also pave the way for the company to gain further traction in the heated motor vehicle lending market.
Morgan Stanley will be the senior funder of the new Moneyme facility with Revolution Asset Management the Mezzanine funder.
Moneyme managing director and CEO Clayton Howes said:
The new Autopay warehouse will further reduce our funding costs, and combined with our variable rate credit products we are well placed to counter upward pressure to the cash rate.
This warehouse is significant for Autopay's growth in 2022 as we expect market demand for Autopay to increase further with major long term players exiting the market.
It's clear the company is looking to capitalise on the departure of several traditional lenders in the auto finance sector, including Westpac Banking Corp (ASX: WBC) which sold its vehicle dealer finance and novated leasing business in June.
In other news from Moneyme today, the company also announced a further 10% increase to the funding capacity of its Horizon 2020 Trust (HW20) Major Bank, bringing it to $467 million.
It comes after the announcement of a boost to its Horizon 2020 warehouse facility capacity in June.
Just last week, Moneyme announced the acquisition of digital finance provider SocietyOne for $132 million.
Moneyme share price snapshot
The Moneyme share price has seen a positive six months, leaping 75% in the six weeks from 10 May to 2 July.
It seems this was spurred by a positive trading update in mid-June. The company's share price has remained in the elevated range ever since.
At its current share price, the company has a market capitalisation of over $335 million with 171 million shares on issue.
