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.
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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, Westpac Banking Corp (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.
