Business payments platform QuickFee (ASX:QFE) is expected to light up the boards of the ASX tomorrow.
The company is tapping investors for $13.5m, via the issuance of 67.5m shares at 20c each.
Founded in March 2009, the company provides a payment gateway for professional services firms in accounting and law.
Its core product is an an online portal that allows customers to pay when and how they want, reducing the lag times on late payments and smoothing out cashflows for the service providers.
QuickFee takes on the cost of the invoice and presents three payment options; loan-financed monthly instalments, full ETF payment or full credit card payment.
The company derives revenue by charging monthly hosting fees for clients that use the platform, as well as some transaction processing fees and interest accrued on loan facilities where provided.
To protect itself from credit risk, professional services firms grant QuickFee the “irrevocable right” to require them to purchase a client loan for any outstanding amounts in the event that clients default on an instalment payment.
Backed by the wealthy Smorgon family, co-founder and managing director Bruce Coombes also has a significant stake in the business.
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With its loan-financed option, QuickFee operates in part as a lending platform and has issued around $190m of loans so far.
The company wants to use the funds to pursue a strategy of growth by acquisition, as well as increasing the size of its loan-book.
It’s also focused on the US, having established QuickFee US in 2016 as a separate operating entity to pursue opportunities “in the much larger USA market where no direct competitor exists”, chairman Barry Lewin said.
Lewin said the company has worked to establish relationships with “more than 230 accounting firms and a distinct first-mover advantage”.
In its prospectus, QuickFee said the US business is still in an early-growth phase and not yet profitable.