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Repayments fintech Credit Clear has delivered a major business boost after signing two top tier clients that will add $1.6 to $2 million in revenue over the next year.
It is a major vote of confidence for its purchase of debt recovery solutions provider ARMA, which has signed up a tier one Australian utility provider that will become one of Credit Clear’s 10 largest clients.
A global fintech has also brought Credit Clear (ASX:CCR) on board to drive a hybrid collections strategy using traditional and digital channels “to improve collections and enhance the overall customer experience and financial wellbeing of its customer base.”
Credit Clear says the client is a big fish and has the potential to become one of its largest international clients.
Combined the wins will add 6-8% to Credit Clear’s revenue base over the next 12 months, highlighting the opportunities presented by the ARMA deal.
On a proforma FY21 basis it added 140% to Credit Clear’s revenues on to $26.5 million and EBITDA to $3.9m, a big increase in scale after Credit Clear reported record revenues of $11 million in the 2021 financial year.
“With ARMA and Credit Clear joining forces, we can provide leading global companies with an enhanced hybrid service (traditional plus digital collections strategies), underpinned by Credit Clear’s award-winning AI technology,” Credit Clear CEO David Hentschke said.
“The Fintech and Utility sectors are a key focus of ours and we could not have hoped for a better start to ARMA and CCR’s relationship.”
ARMA Group CEO Andrew Smith said the rollout of Credit Clear’s communications platform across its clients was progressing well.
The AI technology digitises and customises invoicing, improving debt recovery by helping businesses form a relationship with clients to manage debt repayments, rather than triggering debt avoidance by issuing multiple notices.
ARMA is a debt, commercial and consumer recovery agency whose clients include Suncorp Group, CoatesHire and numerous New South Wales government departments.
Smith said the early successes on the client and revenue front demonstrated the value of the Credit Clear-ARMA tie-up.
“Adding two significant clients in the month after the acquisition is an encouraging sign that clients value our combined and enhanced capabilities,” Smith said.
“Both new clients display a genuine commitment to the well-being of their customers and their values are particularly well aligned with the group’s approach to enhancing the customer’s experience.”
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