The personal lender has announced a $ 200 million warehouse, while signaling plans to go public when market conditions are ripe.
SocietyOne doubled its funding capacity after securing a $ 200 million warehouse, with Westpac acting as both arranger and lead financier.
According to the digital finance platform, the warehouse is scalable and would provide lower cost financing, allowing it to “continue to offer lower rates to borrowers.”
The funding injection followed the recent launch and pricing of a $ 182 million asset-backed bond (ABS) issue, which was backed by a pool of unsecured personal loans as collateral.
Guaranteed loan product goes public
Additionally, SocietyOne launched its Direct-to-Consumer Secured Loan product after its recent launch through the Broker Channel in early 2021.
The product allows eligible borrowers to access a larger loan amount of up to $ 70,000 on loan terms of two, three, five or seven years, by pledging collateral such as a vehicle. or a new or used boat.
Previously, the lender allowed customers to borrow up to $ 50,000 on an unsecured personal loan for up to five years.
The collateral will only be required to cover part of the loan amount (ie the difference between $ 50,000 and the maximum limit of $ 70,000).
Borrowers could also qualify for a 1.00 percent discount on the borrowing rate in recognition of the lower risk offered by the security (the lower rate starting at 5.99 percent).
Commenting on the developments, SocietyOne CEO Mark Jones said: âThroughout 2021, SocietyOne continued to focus on building a portfolio of the highest quality personal loans, driving sustainable growth. through new and attractive products, and to create even more infrastructure and support for our distribution. canals.
âOur newly doubled financing capacity will support these growth initiatives both in the medium and long term, while helping us to reduce our financing costs and improve our financing diversity.
âIn addition, the new secured loan product will allow us to increase accessibility and flexibility for our clients, while maintaining our high credit quality for our investors.
âWe have received overwhelmingly positive feedback on this product when it ships through our broker partners, and we are confident that it will be equally well received by our direct customers. “
SocietyOne Ready for IPO, Says CEO
Mr Jones previously reported that SocietyOne could become a listed company via an IPO later this year, adding that it continues to explore a “gradual change” in its fundraising strategy as it seeks to raise capital. over the next 18 months.
He has now reported to The Adviser that SocietyOne is currently “IPO ready”, saying, “Our intention is to proceed as soon as market conditions are optimal and give the best result. “
SocietyOne reported that brokerage channel creations have increased roughly threefold after former MyState Bank CEO Tony MacRae was appointed as Chief Commercial Officer and former Director of Sales Mortgage Choice and Aussie , Tommy Lee, leading brokerage distribution in July.
At the same time, SocietyOne appointed Melissa Romeo, former senior credit analyst at Capital Assist, as Victorian Business Development Manager (BDM) and promoted Mat Chaffey to National Head of BDM and Broker Support.
[Related: SocietyOne expands broker channel support]
Malavika Santhebennur is the Mortgage Securities Editor at Momentum Media.
Prior to joining the team in 2019, Malavika held positions at Money Management and Benchmark Media. She has been writing about financial services for six years.