Propell has increased its existing wholesale facility, allowing the company to further scale its rapidly growing lending book.

Aussie finance platform Propell Holdings (ASX:PHL) looks to further grow its lending platform after securing an increase in the company’s existing wholesale facility.

The facility, held with current provider Altor Capital Management, will increase by 50% to $7.5m, an amount that will support Propell’s momentum in new lending.

Given the recent significant growth in the lending book, securing access to a larger wholesale facility is a key part of the company’s ability to scale further.

Propell is also in discussions with other third-party wholesale lenders to increase the facilities available to fund the loan book growth over the longer term.

The company is projecting significant growth ahead after reporting strong metrics in Q4.

The number of customers using its platform has now increased to over 2,150 – a 30% growth from the previous quarter and around a 320% on the pcp.

Lending volumes have expanded to $3.4m, a +35% increase  QoQ and a >320% on pcp. The months of May and June represented the largest lending volumes in the company’s history.

The average loan size on its books has also increased to just under $20,000 – up +40% QoQ, and >278% on the pcp.

Towards a maiden profit

Propell’s lending platform is targeting Australia’s 2.4 million SMEs who the company says are frustrated with traditional banks’ slow and difficult lending processes and paperwork.

The platform is serving a potentially large addressable market as Australia’s small businesses account for 97% of the country’s enterprises.

Propell believes the future of finance is digital, and small businesses are searching for alternative digital solutions to their finance needs.

Propell is positioned for this accelerating shift, and  has built a technology that has allowed it to offer not only a leading credit decisioning engine, but also a platform that can automate and simplify the lending process.

Its platform is aimed at improving the cashflow and financial wellbeing of small businesses by aggregating a range of finance products and services including lending, payments and forecasting tools under one roof.

Propell is growing rapidly, and last month the company undertook a convertible note cap raise for $2.8m as it looks to take business toward a maiden profit.

According to the company, the convertible note is the key missing piece towards its goal of achieving cash flow breakeven and profitability as early as possible, which it says could happen by the end of CY23.

This article was developed in collaboration with Propell, 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.