Auto finance specialist Money3 has secured a warehouse facility, with initial funding of A$250 million and with scope to grow.

The company said the warehouse funding, which is being provided by a “globally recognised A+ rated bank”, will allow it to grow its loan book and reduce borrowing costs.

The company’s loan book was $433.8 million at June 30, after growing 16.4 per cent in 2019/20. Borrowing costs will be about $10 million a year less when the warehouse facility is fully deployed.

After a restructure in 2019, Money3 only provides auto finance. It acquired Go Car Finance in New Zealand in March last year and sold its small amount credit contract business two months later.

The company provided a September quarter update, reporting a 12.3 per cent increase in revenue, compared with the previous corresponding period, and a 33.3 per cent increase in net profit to $10 million.

New loan originations were up 10 per cent on the previous corresponding period and the loan book grew 12.3 per cent.