Lender secures $50m NAB-funded warehouse facility

Wisr has secured an initial $50-million debt warehouse facility from NAB, designed to support the scaling of its personal loan originations.

The lender has confirmed that the facility will become operational once completion of all conditions precedent have been satisfied, which is expected to occur on or about 15 November 2019.

Key details of the deal include:

• Initial $50-million warehouse size with the potential to increase the program size up to $200 million
• Senior funding provided by NAB for an initial two-year availability period, with the ability for extension
• Mezzanine funding included within the structure
• Documents executed with funding to follow after completion of conditions precedent
• Approximate tripling of the average margin to Wisr compared to current loan unit economics

According to Wisr, the new facility meets the company’s objectives to increase debt capacity to fund growth, diversify funding partners to offset risks, improve overall margins, and improve specific loan unit economics.

Following the announcement, Andrew Goodwin, CFO of Wisr, said: “This is an incredible result for Wisr that recognises our unique business model and approach to this sector. This funding deal will significantly improve loan unit economics and provide a clear runway for growth and new avenues for Wisr to launch more lending products.

“The due diligence process of this deal further validates the company’s ongoing investment into its proprietary lending platform, and strong adherence to compliance and responsible lending practices.”

Cathryn Carver, executive general manager, corporate and institutional banking at NAB, added: “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.”

NAB’s head of securitisation origination Sarah Samson also stated that the bank was “particularly impressed” by Wisr’s end-to-end origination platform, its strategy, vision and leadership team.

Wisr CEO Anthony Nantes said the deal is the “next step” in the evolution of the Wisr business.

“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,” he said.

“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.”

[Related: NAB supplies fintech with $57m loan facility]