The MME executive team continues to lower its cost of capital as revenue grows.

With loan originations growing at record pace, fintech lender MoneyMe (ASX:MME) is staying busy in wholesale funding markets.

The company advised last week that it has increased its Horizon warehouse facility by another $22m.

The additional funds were raised via mezzanine finance in the Westpac supported primary warehouse, an additional vote of confidence to provide the requisite capital base for further loan growth.

Last weeks announcement follows a trading update in May, when MME upgraded its full-year targets for FY21 and said it now expects to have total customer receivables of more than $300m on its books by June 30.

In addition, May marked the first full trading month for MoneyMe’s new Autopay service, its same-day, drive-away lending solution for secured vehicle finance.

With big banks moving back from Australia’s $12bn automotive finance market, fintech players such as MME are looking to snap up market share with nimble lending options that suit the demands of modern consumers.

As a measure of Autopay’s early growth, the platform had already generated more than $1m in sales before its official launch on May 25.

Looking ahead, MME expects Autopay to contribute to ongoing loan growth, after it put together a string of record monthly lending results in the first half of the year.

Speaking with Stockhead recently, MoneyME CEO Clayton Howes highlighted the importance of expanded funding models to finance new loan originations.

“When you get major bank funding as a lending business, it sets you up for scale and incredible growth,” Howes said.

Already this year, MME has increased its wholesale funding facility from around $170m to more than $250m, bringing the cost of financing lower while lending revenues continue to rise.

In that context, the company is eyeing even stronger profit margins in the years ahead as it establishes a major footprint in Australia’s fintech lending market.

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

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