Wisr’s accelerated growth continues despite economic headwinds

Consumer lending company Wisr (ASX: WZR) revealed its loan volume was “still accelerating” and it was on track for 15-25% quarter-on-quarter growth for the current period – despite coronavirus headwinds.

The company noted coronavirus COVID-19 was yet to have a tangible impact on the business. Additionally, Wisr stated it has undertaken a “range of actions and measures to prepare and adjust rapidly” to the changing economic outlook.

One of these adjustments includes “prudent changes” to the credit policy to reduce risk and implement changes for customers who encounter difficulties.

Wisr has also carried out stress testing scenarios to prepare for various outcomes and shore up the business during an extended economic downturn.

As part of this, Wisr’s entire workforce was able to work from home on 12 March as a trial with no disruption to normal business operations.

While Wisr shores up the business against any COVID-19 impact, its loan volume continues to grow – with more than $31.6 million in loans written between January and 13 March 2020.

The company’s credit score remains above the 600 average at 706, with this attributed to the “prime nature” of its credit and “high-quality” customers.

Additionally, Wisr’s loan originations are on track to exceed $200 million in the coming weeks, with originations reaching $195.4 million on 13 March.

Strong balance sheet

As well as experiencing growth, Wisr noted its was “very strongly capitalised” with the second tranche of its $36.5 million capital raising expected to settle this week.

This is on top of Wisr’s $10.23 million cash in hand at the end of last year.

“While the Australian economic outlook has changed, Wisr is very strongly capitalised, with a business model able to rapidly adjust to changes in economic outlook,” Wisr chief executive officer Anthony Nantes said.

“We are writing prime quality credit, which historically performs well through a credit cycle,” he explained.

“We have a strong and committed team and the company is well structured to withstand and succeed through any potential economic softening.”

Mr Nantes added the company will continue to “responsibly lend” to its customers to assist them with consolidating, refinancing, purchasing and fulfilling their needs including using the Wisr app to assist with reducing debt.

Wisr’s share price has taken a beating the past month where it slid to $0.066 yesterday after closing at $0.32 on 12 February.

However, today’s news prompted Wisr’s share price to lift more than 16% to $0.077 by mid afternoon.