AppsVillage signs landmark deal with US-based Seek Capital for its integrated lending service
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Special Report: The deal marks an important milestone for the company, as it looks to open up new revenue channels with broader SaaS product offering.
ASX-listed AppsVillage (ASX:APV) has established a strong platform with its innovative solution that allows users to set up an app for their business within minutes.
Now, the company wants to leverage that network build out a fully integrated service offering, with the launch of its MicroLoans lending program.
Today it announced a key step forward towards that goal; an agreement with US-based loan procurement company Seek Capital LLC.
The Seek Capital platform matches small businesses with prospective lenders, and arranges loans of between $US5,000 and $US500,000. To date, the company has procured more than $US300m in loans for US companies looking for expansion capital to grow their business.
Under the terms of the deal, AppsVillage will leverage its network of more than 100,000 US small businesses to generate sales of loan services brokered by Seek Capital.
All loans provided to AppsVillage customers will be approved by either Seek Capital or one of its third-party providers.
In return, for each customer AppsVillage introduces to the Seek lending platform, it will earn commission revenue equal to 25 per cent of the brokerage fee paid to Seek.
“It’s well known that a lack of capital is a growth constraint for a high percentage of SMBs, and we are excited to help SMB owners provide the injection of capital they need,” Seek Capital CEO Roy Ferman said.
“AppsVillage is the ideal strategic partner, as it has a large and growing base of SMB customers for whom it has built trust and goodwill.”
For AppsVillage, the agreement with Seek Capital is evidence that the executive team is taking practical steps to execute on the company’s vision – to become an integrated platform for SMBs providing a suite of operational and financial services.
The deal opens up an extra revenue channel and puts the company in position to continue its strong rate of top-line growth, which is on track to more than double in 2019.