Fintech point-of-sale finance provider clinches $200m bank facility

By Ryan Weeks on 27th February 2017

Alternative CreditFintech

ASX-listed fintech zipMoney scores securitisation facility from “big four” Aussie bank.

Fintech point-of-sale finance provider clinches $200m bank facility

zipMoney, the Australian point-of-sale credit and payments provider, has agreed to terms on a $200m securitisation warehouse programme for its consumer receivables. The facility comes from one of Australia’s “big four” banks, but the identity of the bank has not yet been revealed. While key terms have been agreed to, the deal is not yet complete, which is why the name of the bank has been withheld.

If all goes according to plan, the facility will be operational in the fourth quarter of this year, and will be used to refinance half of the existing Victory Park Capital facility, which was inked in December 2015. In the meantime, zipMoney will increase the size of the $108m Victory Park facility to $140m, with the option of increasing it again to $200m in the future.

Commenting on the impact of the “big four” facility, zipMoney CEO and managing director Larry Diamond said that it would “approximately halve the weighted average cost of capital” on the company’s loan book.

zipMoney uses big data to deliver real-time responses across a range of industries in Australia, including the retail, education, health and travel sectors. The company listed on the Australian Stock Exchange in September 2015, raising $5m. It then raised a further A$20.6m via a share placement in the summer of last year, in part to finance the acquisition of personal finance management software Pocketbook Holdings Pty Ltd. zipMoney made a loss of over $7m in the last financial year.

Diaomond called the new $200m facility is a “transformative step” for the company.


AltFi Amsterdam Summit 2018

AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.

5th November 2018

Companies in this Article:

Victory Park Capital

People in this Article:

More like this:

$500m fintech fund launches in Europe

17th October 2018
George Geddes

Is Agrifintech the next big thing?

19th October 2018
David Stevenson

Alternative lender breaks even

3rd October 2018
Ryan Weeks