Splitit signs agreement with Goldman Sachs for reduced interest rates

The revised facility terms are forecast to save the company up to USD 5.3 million across a 2-year period, when including the volume and reduced interest rates associated to the global merchant expansion (as outlined in the AGM Notice of Meeting). Exclusive of the global merchant expansion savings, the interest savings would still be forecast to be up to USD 2.1 million across a 2-year period.

Splitit’s officials stated that in a macro environment being challenged by rising interest rates, to have the support of their lending partner to both reduce their interest costs, whilst also assisting them with the expansion of a major global merchant, is of substantial benefit to Splitit. These savings will further reduce their expenditures, in addition to the operating expenditure reductions initiated throughout H1 2022.

Splitit is a global payment solution provider that enables shoppers to use the credit they’ve earned by breaking up purchases into monthly interest-free instalments using their existing credit card. The company solves the challenges businesses face with legacy BNPL while unlocking BNPL at the point of sale for card networks, issuers, and acquirers, all through a single network API.

Splitit's Instalments-as-a-Service platform mitigates issues with legacy BNPL like the declining conversion funnel, clutter at the checkout and a lack of control of the merchant's customer experience, putting the power back in the hands of merchants to nurture and retain customers, drive conversion, and increase average order value.