The MoneyMe Ltd (ASX: MME) share price is rising after announcing increased funding commitments from an Australian Bank. Here’s the details.
The post MoneyMe (ASX:MME) share price edges higher. Here’s why appeared first on The Motley Fool Australia. –
The MoneyMe Ltd (ASX: MME) share price is edging higher in late morning trade. This comes after the company announced its warehouse facility has received increased funding commitments from a major Australian bank.
At the time of writing, the digital credit company’s share price is up 1.7% to $1.53.
Increased funding commitment
The MoneyMe share price is in the green today after reporting an update that has investors pleased.
According to its release, MoneyMe advised that one of the ‘big 4’ Australian banks has provided an increased senior warehouse commitment of $150 million. This is a 50% increase on the previous $100 million that was backed by the group’s major funder.
Under the new arrangement, it’s expected that the expanded commitment will drive future growth in loan originations. Altogether, MoneyMe’s warehouse structures stand close to $300 million.
More on MoneyMe’s warehouse facility
Created in September 2020, the company’s warehouse funding facility provides customers with lending products. Consequently, this allows MoneyMe to grow its business through loan originations. In short, the business profits from customers, as does the bank from financial technology.
Interestingly, it was a major Australian bank, 西太银行 (ASX: WBC) that helped established MoneyMe’s line of credit.
What did management say?
MoneyMe Managing Director and CEO Clayton Howes commented on the positive news:
The increased commitment in MoneyMe’s warehouse facility is outstanding news and stems from exceptional growth in high quality loan originations. We are delighted this successful partnership with an Australian “Big 4” bank has been extended. It gives us both funding and confidence to meet the increasing demand from Generation Now by creating innovative products that resonate with them.
MoneyMe share price performance
Over the last 12 months, the MoneyMe share price is down around 7% reflecting subtle gains for investors. Indeed, the company’s shares hit a low of 50 cents at the end of March. However, they have since been moving on a slow upward trajectory.
Finally, based on the current share price, MoneyMe commands a market capitalisation of roughly $265 million.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.