The company’s latest growth update shows MME is going from strength to strength as a tech disruptor in Australia’s consumer finance sector.Image: Getty
MoneyMe upgrades full-year lending forecast after a huge month in April
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The company’s latest growth update shows MME is going from strength to strength as a tech disruptor in Australia’s consumer finance sector.
Fintech lender MoneyMe (ASX:MME) has upgraded its full-year growth targets, and now expects to finish the year with total customer receivables of more than $300m.
It follows another record month in April, which saw the company book $47m of new loan originations – another record high.
And the upward re-rating to forward guidance is another reflection of MME’s strong operating momentum as it lays the platform for further growth.
Snowball effect
Combined with MME’s operational efficiencies, gross loan originations are expected to flow through to full-year revenues of between $58-$62 million, the company said.
In addition, the record month of April was achieved largely through MME’s existing product lines, led by its core consumer lending platform.
Looking ahead, the company expects further strong growth from the recent launch of Autopay — its market-leading solution for same-day vehicle finance.
And CEO Clayton Howes said the company is focused on its growth strategy as it capitalises on key structural shifts being driven by technology and changing consumer patterns.
The record result in April is a by-product of MME’s “on-the-spot decisioning and fast settlement geared to the needs of Gen Now”, Howes said.
“Launched on the 21st of April, Autopay is already transacting sales in dealerships and we have a strong product pipeline to support revenue growth.”
Funding strategy
Ahead of its full-year growth upgrade, MoneyMe also announced this week that it has successfully closed a $15m bond issue to finance its aggressive expansion.
“At a time of record-breaking growth for MoneyMe, the funds give us the opportunity to further accelerate the pace and scale to meet the demand for our products,” Howes said.
He added that institutional debt investors were attracted to the deal in the wake of MME’s strong ongoing growth momentum through the March quarter, as well as the market opportunity for its AutoPay launch.
The debt was issued in the form of four-year secured notes, priced at a coupon rate of 8.25% per annum.
There is an early redemption clause, meaning that MoneyMe can buy back the bond at any time prior to the final maturity date.
Combined with the recent extensions to MME’s wholesale funding base, the company is now positioned to drive the growth of its loan book and long-term revenues, while also generating improved margins as funding costs fall.
Speaking with Stockhead recently, Howes highlighted the importance of MME’s strong funding base as growth accelerates.
“As a lending business, when you get major bank funding it sets you up for 20 years of growth,” he said.
“To get to that point you’ve got to demonstrate the strength of your loan book to the highest standards and address all regulatory risks.”
“So that’s really what separates us for anyone that hasn’t got a bank deal in play.”
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.
