Cashflow Finance has finalised the purchase of the Classic Funding Group (CFG), making it one of the largest non-bank lenders in Australia specialising in trade, invoice and equipment finance.
The acquisition was first announced on 9 September 2019.
CFG is a financial services company with over 25 years’ experience in providing asset finance solutions across both equipment finance and invoice discounting.
Cashflow Finance is a subsidiary of CML Group. The acquisition will accelerate CML’s strategy to gain market share in the offerings developed in-house and launched over the last two years.
“We are excited by the acquisition and the growth we are achieving organically,” said CML Group CEO Daniel Riley.
“We are confident that the acquisition will stimulate our business even further and we look forward to reporting on our progress through the year.”
Currently, CFG’s invoice discounting division is financed through a $45m warehouse facility provided by a major bank. Its loan book is over $30m and will add approximately 40 clients and $400m+ of annual invoice turnover to CML’s invoice finance portfolio
CML Group will additionally benefit from CFG’s equipment finance book, which will add “critical scale” to CML’s business and take Funds Advanced from $20m to over $120m.
Currently, CFG’s equipment finance division is financed through a separate $130m warehouse facility. The loan book is currently more than $100m, with a proven history of strong credit performance and well-established channels to market.
The acquisition will also help to advance CML’s plan to transition to “significantly cheaper funding” for its equipment finance product as part of its growth strategy.