Powered by MOMENTUM MEDIA
subscribe to our newsletter
DirectMoney forced to turn away new business

DirectMoney forced to turn away new business

Marketplace lending platform DirectMoney has been forced to offload some of its business to another lender to cope with an excess of loan applications.

In a statement to shareholders, DirectMoney executive chairman Stephen Porges said the company is establishing a referral arrangement with “a trusted lending institution”, which is intended to provide a further option for its “excess loan applications which cannot by supported by sale of loans to the fund or institutional investors”.

“This referral arrangement is also attractive as it has the potential to be extended into a more permanent loan sales arrangement,” he said.

“Consumer appetite for DirectMoney personal loans is strong and we are committed to our diversified strategies to fund this demand.”

Mr Porges said the ASX-listed lender remains “intensely focused” on progressing loan sales to institutions, as well as the development of a funding warehouse.

“At the same time, we are rolling out a strong marketing program for the fund which, as we have said, will be a centrepiece of the DirectMoney business model in the medium-to-long term,” he said.

“This is both a unique opportunity for Australian retail investors and a significant source of funding for our business.”

As of March 2016, DirectMoney held $6.78 million of loans and had net assets of $9.10 million on its consolidated balance sheet.

[Related: DirectMoney sees record month of loan settlements]

DirectMoney forced to turn away new business
mortgagebusiness

Latest News

The financial services royal commission and the Productivity Commission inquiry into competition in the Australian financial system will lik...

The Reserve Bank of Australia has sought to address the dispute over the cause of the recent drop in property prices. ...

COBA has renewed calls for a “proportionate” regulatory regime that doesn’t “squeeze out” smaller lenders. ...

FROM THE WEB
podcast

LATEST PODCAST: The federal court system v HEM, a new government-backed SME fund

Is enough being done to ensure responsible lending?