The Wisr Ltd (ASX: WZR) share price has started the week in a very positive fashion.
The neo-lender's shares raced as much as 16% higher to 14.5 cents this morning. They have since dropped back a touch but are still 8% higher at 13.5 cents at the time of writing.
Why is the Wisr share price racing higher?
At the end of July Wisr revealed that it was in advanced discussions with Tier 1 funders. This was to provide debt capital to its fast-growing loan book.
Pleasingly, this morning the company announced the completion of an initial $50 million debt warehouse program. It also has the potential to increase the program size up to $200 million.
According to the release, the senior funding to the program is provided by National Australia Bank Ltd (ASX: NAB).
Management advised that the new facility meets its key objectives. It will increase its debt capacity to fund its rapid growth and diversify its funding partners and therefore risk. It is also expected to improve overall margins and specific loan unit economics.
Management commentary.
The company's CEO, Anthony Nantes, was delighted with the agreement.
He said: "This is an excellent outcome for Wisr as we execute our strategy to redefine and reinvent what a consumer lending company can be. This new funding deal is the next step in the evolution of our business, giving us greater scope to grow through funding, improved margins, and overall loan unit economics."
"In NAB, we found a partner that has a great understanding of the fintech industry, and one that leans into what we are trying to achieve through our purpose to deliver smarter, fairer financial outcomes to all Australians. We're excited about what this opportunity means for our business, our customers and shareholders, and look forward to a long term mutually beneficial partnership with NAB," he added.
NAB executive, Cathryn Carver, also spoke positively on the partnership. She said: "This partnership further acknowledges our support for Australian fintech and strongly recognises the purpose-led business Wisr is building. Their focus on delivering great customer outcomes around financial wellness led us to believe in their business model. The management team are very credible and well supported and they don't see us as just a lender to their business, they see us more as a partner."
