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The non-bank lender has secured a further $150 million funding warehouse facility, going towards funding for its equipment finance growth.
Moneytech’s new warehouse debt facility has been provided by one of the major Australian banks and will allow the non-bank lender to underwrite equipment finance loans of up to $2 million per borrower.
The facilities are provided on a standalone basis or in combination with debtor finance, trade finance, property finance, or line of credit.
The non-bank lender is currently funding around $2.5 billion worth of invoices per year through its trade and invoice finance offerings.
Moneytech chief executive, Nick McGrath, said the establishment of additional warehouse funding facilities will allow Moneytech to “continue supporting small to medium businesses with a comprehensive, multi-product, asset-backed lending solution”.
“This also allows us to provide interest rates on the new facilities that are on par with other large non-bank Equipment Finance lenders with loans that can be settled in as little as 24 hours,” Mr McGrath said.
On supporting small- to medium-sized enterprises (SMEs), Mr McGrath stated: “The importance of the new warehouse funding in Moneytech’s growth journey allows us to diversify our treasury risk across various major Australian banks.
“The non-bank sector continues to provide vital liquidity and funding support to SMEs in what is a challenging economic time for many borrowers and our warehouse funding program helps facilitate this.”
Another non-bank secures debt facility
Wisr Limited (Wisr) recently completed an agreement for an institutionally backed debt facility priced at $25 million with one of the big four banks to support its ongoing growth.
Wisr will draw $20 million initially, with a further $5 million being made available subject to certain milestones being achieved.
The facility’s scheduled maturity date is 1 July 2025 and will be drawn at the head company level. The non-bank lender intends to use a portion of these proceeds to repay its existing $6.5 million debt facility, which matures in May next year.
Wisr’s new warehouse facility is set to further diversify its funding sources along with improving growth through funding capacity and adding robustness to the company’s balance sheet.
CEO, Andrew Goodwin, stated that diversification of scalable funding sources and balance sheet robustness “is prudent” due to current market conditions.
“These provide Wisr with the flexibility required to deliver profitability in the short term and support our medium-term growth ambitions,” Mr Goodwin said.
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“Receiving institutional debt funding and credit approval from another Big 4 Bank is a testament to the Wisr lending platform, our technology and processes and the continued strong performance of our prime loan book.”
[RELATED: Wisr obtains additional $25 facility]
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