MoneyMe gets $200 million to accelerate its Autopay auto detachable loan platform

Morgan Stanley’s additional $200 million credit facility will support MoneyMe’s auto lending business, a rapidly growing segment as major players exit the market.

After hitting the $1 billion origination milestone in Q1 and posting record growth in Q2, the fintech lender MoneyMe (ASX:MME) has now secured an additional financing facility for the next phase of growth.

The company announced that a new warehouse finance facility led by Morgan Stanley Australia has been established to meet the needs of its rapidly growing Autopay product.

Immediate additional capacity of $200 million was approved to fund Autopay receivables, helping MoneyMe gain traction in the hot auto loan market.

Having secured funds at less than 3% above the 1-month BBSW benchmark rate, the new facility should immediately reduce funding costs for the overall group.

Floating rate financing also fully aligns with Autopay’s floating rate consumer pricing, negating any market risk that might otherwise arise in a rising rate scenario.

Morgan Stanley is the lead funder of the facility, with Revolution Asset Management being the Mezzanine funder.

Separately, MoneyMe also announced a further 10% increase in its funding capacity from major bank Horizon 2020 Trust (HW20) to $467 million.

MoneyMe CEO Clayton Howes said the new warehouse is important for Autopay’s growth in 2022, as he expects market demand for the platform to increase further as major players exit. long-term market.

“We are excited about the growth and strengthening of MoneyMe’s funding platform as we welcome Morgan Stanley as an international bank funding partner,” said Howes.

“It’s also fantastic to have this additional funding capacity added for the group alongside a further increase in Major Bank’s HW20 facility.”

MoneyMe’s record quarter

Earlier this month, MoneyMe posted record growth creations for the second quarter to date, while FY22 revenue is now expected to top FY21.

After crossing the $1 billion mark in loan originations in the first quarter, MoneyMe reported record originations of $170 million for the first two months of the second quarter of FY22, up 286% from the same period last year.

Automatic payment shines

The company’s bespoke auto finance platform, Autopay, continues to shine and has now passed the $100 million milestone in creations in just seven months since its launch in April 2021.

About $68 million of those auto loans were originated in October and November alone, resulting in $111 million in gross trade receivables.

“November results for FY22 show Autopay gaining momentum, with dealerships and brokers signing up for the new platform and faster-than-expected adoption by car buyers,” Howes told Reuters. ‘era.

Howes said Autopay is a breakthrough innovation, where dealerships and brokers can offer car financing to a customer in 60 minutes.

This article was developed in conjunction with MoneyMe, a Stockhead advertiser at the time of publication.

This article does not constitute advice on financial products. You should consider obtaining independent advice before making any financial decisions.

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