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Wisr has announced that its two-year debt warehouse program is now live and operational, after notes were issued to subordinated investors on Friday (15 November) to commence the funding of personal loan receivables.
The $50-million debt warehouse facility, funded by National Australia Bank (NAB), was announced on 28 October 2019, and is set to triple the average margin to Wisr compared with current loan unit economics.
Further, the initial $50-million warehouse size has the potential to size up to $200 million, with a possible extension of the two-year availability period.
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.
Andrew Goodwin, chief financial officer at Wisr, said: “This is an important first step in a partnership that will dramatically improve Wisr’s revenue projections, path to profitability, and our underlying loan unit economics.
“It provides assurance for our growth aspirations, supports the rapid scaling of our personal loan originations, and allows scope for Wisr to develop new lending products going forward.
“The warehouse program further enhances Wisr’s strategy to redefine and reinvent what a consumer lending company can be,” Mr Goodwin concluded.
At the time the warehouse facility was announced, Cathryn Carber, executive general manager, corporate and institutional banking at NAB, said the partnership with Wisr serves as part of the bank’s $2-billion commitment to fund the growth of Australian fintechs.