Fintech lender DirectMoney has more applications for unsecured personal loans than it can service with its funds available to lend.
The only ASX-listed peer-to-peer lender, in an update on its first full year of performance, says it expects to provide an annual return to unit holders of more than 7.5%.
Chairman Stephen Porges says the company remains intensely focused on selling loan to institutions and in developing a funding warehouse.
“To support our excess loan applicants we are establishing a referral arrangement with a trusted lending institution,” he says. He didn’t name that bank but it is reported to be Macquarie.
“This referral arrangement is intended to provide a further option for our excess loan applications which cannot be supported by sale of loans to the fund or institutional investors.
“Consumer appetite for DirectMoney personal loans is strong and we are committed to our diversified strategies to fund this demand.”
The 100% online loan management platform has $6.78 million of loans and net assets of $9.10 million.
DirectMoney, which floated in July last year, operates a marketplace writing prime, unsecured personal loans for three and five year maturities to Australian consumers then on-selling these loans to either the DirectMoney Personal Loan Fund or to institutional and wholesale investors.