Aussie SME lender Earlypay acquires Timelio’s $40m loan portfolio and assets
Earlypay has acquired the assets and loan portfolio of Timelio, a Melbourne-based fintech that specialises in P2P invoice and trade financing for SMEs in Australia, for around $3 million.
Earlypay acquires Timelio’s $40m loan portfolio
Operating in the fields of invoice financing and trade finance, Sydney-based lender Earlypay has leveraged the acquisition to add $40 million to its loan portfolio, comprising of $35 million in invoice finance and a further $5 million in trade finance.
Earlypay has also now taken control of Timelio’s supplier early payment software platform, which pays supplier invoices for large businesses early in exchange for portion of the invoice’s value.
The lender describes the platform as an “attractive product” for corporates with a cash surplus and for suppliers in need of working capital flexibility.
In filing the acquisition, it revealed its plans to expand upon Timelio’s supplier early payment business by engaging “cross-selling opportunities” with its existing invoice, equipment and trade finance products.
Earlypay’s chief executive officer, James Beeson, says that in addition to scaling its own core invoicing financing produce, the business “adds a strategic and complementary product”, which it plans to use to support SME working capital needs while also furthering its own commercial strategy.
The lender completed the purchase through a mix of both cash and scrip, although the payment will incur a six-month hold-back period to offset expected post-acquisition credit losses.
Once completed, subject to customary conditions and the approval of Timelio’s shareholders, the acquisition will respark Earlypay’s refinancing plans for a new invoice and trade warehouse facility.
Earlypay will incorporate Timelio receivables into its existing facilities, before rolling into the new invoice and trade finance warehouse. The facility is expected to reach financial close by “early December” this year, and will resume refinancing by the beginning of 2024.
