Home lending? Pfft. These ASX stocks are reaping the benefits of personal and renewable lending
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Record low interest rates mean the lending market is a buyer’s market but it isn’t only home lending seeing rising consumer demand.
Personal lending and renewable energy are seeing hot demand too and one stock with a foot in both camps is Plenti (ASX:PLT).
It is a good time for renewable energy globally thanks to government subsidies at a macro level – most pertinently the Biden administration’s Climate Plan – as well as individual take-up at a micro level.
Looking at home solar systems for example, 2020 saw 370,000 Australian homes installing them. That’s up from 280,000 in 2019.
Plenti offers finance solutions for renewable energy and has funded the installation of over $100 million in residential renewable technology in the last three years.
While many traditional lenders do too, Plenti is reporting hot demand as customers look for the loans that are better value and technology-driven.
Today Plenti announced it had doubled the funding capacity of both its renewable energy and personal lending warehouse facility from $100 million to $200 million.
The rise comes just four months after the warehouse was established and brings its total funding capacity to $550 million.
Plenti CEO Daniel Foggo said that the funding would enable continued growth and his company would capitalise.
“With faster, simpler finance that offers better value, Plenti has been successfully taking market share in the renewable energy and personal loan verticals,” he declared.
“Our funding program is key to allowing Plenti to build scale. Our strategy is to ensure our funding is deep, diverse and low cost.
“The facility increase announced today allow us to continue to better serve customers who are looking beyond the traditional lending experience, and who are seeking a faster, fairer, technology-led alternative.”
Plenti also offers specialist BNPL finance solutions for renewable energy having launched an offering in March.
Another ASX personal lending stock experiencing booming demand is MoneyMe (ASX:MME).
The company reported loan originations of $47 million last month which is up 693 per cent from the prior corresponding period (April 2020).
MoneyMe’s solid performance has led to the company upping its guidance for FY21. It anticipates revenues between $58 million and $62 million and a gross customer receivables balance exceeding $300 million.
If replicated, the latter figure would be 225 per cent higher than in FY20 – $134 million.
One other ASX personal lending stock is Wisr (ASX:WZR). Last week it reported a 275 per cent spike in revenue and total loan originations reaching $448.3 million.
At Stockhead, we tell it like it is. While Plenti & MoneyMe are Stockhead advertisers, they did not sponsor this article.