Rising interest rates have triggered a wave of capital raisings among non-banks in the last month as niche lenders brace for escalations in funding pressure.

ASX-listed personal lender MoneyMe yesterday joined the rush for an equity boost after signalling a move to issue more shares to investors.

The company’s ASX-listed shares were placed in a trading halt on Tuesday pending release of information regarding the equity issue.

While the parade of loss-making buy now pay later and consumer finance companies seeking fresh capital has raised alarm among many investment managers, MoneyMe appears to be making genuine progress in its quest for profitability.

If that is confirmed by the full year results this morning, MoneyMe’s progress would stand in contrast to other consumer finance providers such as Zip and Openpay which have each reported material deterioration in their financial positions this month.

One of the keys to MoneyMe’s business model is its range of variable rate finance products that allows the company to reprice receivables in response to movements in funding costs.

The company markets loans and credit cards under the “MoneyMe” and “Society One” brands, and had A$1.4 billion of gross receivables at the end of June.

The business might be on track to record a bottom line profit in 2023 following a sustained period of revenue growth and cost reductions.

This morning, MoneyMe chief executive Clayton Howes is scheduled to unveil the company’s full year results and details about the fresh capital raising.

MoneyMe scrip last traded at 69 cents on Monday.