SocietyOne doubles funding capacity with $200m warehouse facility and launches secured loans direct to consumers
Digital finance platform SocietyOne has doubled its funding capacity after securing a second $200 million warehouse facility, for which Westpac was both the arranger and senior financier, on the tails of a recent $182 million asset-backed securities (ABS) bond issue.
The additional $200 million warehouse facility is scalable and provides lower cost funding, enabling SocietyOne to continue to deliver lower rates to borrowers.
This coincides with the recent release of the SocietyOne secured loan product direct to consumers, after the product was successfully launched through the broker channel earlier in 2021.
By pledging security such as a new or second-hand vehicle or boat, the secured loan product gives eligible borrowers access to a larger loan amount up to $70,000; loan terms of 2, 3, 5 or 7 years; with the ability to also achieve a discount on the borrower rate as acknowledgment of the lower risk afforded by the security.
SocietyOne is also enjoying a notable uptick in broker channel originations, after recently sailing past $1 billion in total originations following multiple record months of lending throughout 2021.
The newly doubled funding capacity and growing product offering positions SocietyOne as a well-established player in the consumer digital finance sector.
It also demonstrates a high level of confidence from capital markets in the quality of SocietyOne’s credit and business, says CEO Mark Jones (pictured with CIO John Cummins).
Jones said, “Throughout 2021 SocietyOne has continued to focus on building the highest-quality portfolio of personal loans, driving sustainable growth through new and attractive products, and building even more infrastructure and support for our distribution channels.
“Our newly doubled funding capacity will support these growth initiatives both in the medium and the long-term, while helping us to reduce our cost of funding and improve our funding diversity.
“In addition, the new secured loan product will enable us to increase accessibility and flexibility for our customers, while maintaining our high credit quality for our investors.
“We received enormously positive feedback on this product when delivered via our broker partners, and we have every confidence it will be just as well-received by our direct customers.”
