Following this announcement, the acquisition is set to add a total of USD 40 million loan portfolio, primarily composed of invoice and debtor finance, into the loan book of the lender. In addition, it also added a small portion of trade finance to Australian small and medium-sized businesses (SMBs).
As Timelio’s customers and clients could be found across several industries (such as labour hire, recruitment, wholesalers and manufacturing, or transport and logistics), both companies will focus on making the process of transitioning the invoice financing users as secure and efficient as possible. At the same time, customers are set to maintain their already existing Timelio relationship manager.
As part of the agreement between the two companies, the lender is set to incorporate Timelio’s Supplier Early Payment platform as well. The service was designed in order to provide larger businesses and merchants with the possibility to efficiently and safely pay their supplier invoices early, in order to optimise the process of meeting the working capital needs of their users. Furthermore, the product focused on providing traders and customers with benefits that came from a discount on the value of the invoices.
The additional scale and suite of services that will be integrated into Earlypay’s portfolio of solutions are set to accelerate and improve their overall aim to meet the needs, preferences, and demands of Australia’s clients and users, as a working capital financier.
Earlypay will also be given the capability to invest further in individuals and its software, in order to service the small and medium-sized enterprises (SMEs) and their referrers in the region of Australia. At the same time, the company will prioritise remaining compliant with the requirements and laws of the industry. The new changes will be made only after the subject to customary conditions and the approval of Timelio’s shareholders are completed.
As multiple small and medium-sized enterprises are in search of safe and comprehensive working capital solutions, the companies will focus on providing clients with the needed access to the invoice and trade financing tools that are required for their development process. At the same time, SMEs are set to be enabled to access other additional products and features as well, such as equipment finance, invoice collection solutions, or trade debtor protection.
The facility is expected to reach the financial close by early December 2023, with plans to resume refinancing by the beginning of 2024.
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