A finance group yesterday announced the acquisition of Australian Invoice Finance (AIF) as the next step in its expansion plan.
The move came as part of Grow Finance Group’s continued efforts to build out its fintech platform and further its SME finance facilities. It also follows on from the group's successful acquisition of the $121m Eclipx Commercial business in September 2019.
“Providing more lending products to our existing and prospective clients is the driver from Grow’s standpoint,” said Grow co-CEO David Verschoor.
Within the first two years of launching, AIF achieved loan portfolio growth of 120% and established operations in all Australian states. With its successful invoice finance business and experienced staff already spread around the country, the lender was a fitting choice for the group to set its sights on.
AIF offers to pay up to 85% of customer's unpaid invoices without requiring property as security, providing same-day approval and flexibility for clients going through challenging periods, all of which makes the partnership a natural fit as Grow Finance prioritises speed of delivery, competitive pricing and providing a range of SME finance products; through this new arrangement, that spectrum has expanded to now include asset finance, trade finance and invoice finance.
“Grow is delighted to welcome the AIF team and to add this important SME finance product to our existing and prospective client base,” said Grow co-CEO Greg Woszczalski.
“Improving the client experience by having a central point to provide funding for their business needs, reduces the number of applications required and allows speed of getting the funds in our clients’ accounts.”
The parties commercially agreed to the transaction in March 2020 and were able to complete despite the challenges posed by COVID-19.
With the addition of the AIF team, Grow Finance boasts a staff of 50. The non-bank has funded over $619m to Australian businesses since its launch and currently has more than 7,500 client contracts.