Credit Clear momentum kicks up a gear in May with $1.5m worth of new deals
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Credit Clear continued rapid sales momentum in May with its disruptive technology offering now highly sought-after as its leader says it’s winning business faster than ever seen before in the industry.
Payments technology company Credit Clear (ASX:CCR) has announced new business in May across multiple clients is expected to add $1.55 million in revenue over the next 12 months.
New clients signed in May include one of Australia’s largest water utilities, three financial services providers and a TAFE.
Credit Clear has also been engaged by one of the financial services firms on a pilot phase where on expected success the company will be able to service a $2 billion debt portfolio.
New clients in May, along with a material increase in volumes from existing clients, has seen Credit Clear’s active customer accounts climb to 825,000, up 136% from June 2021.
Along with the success of signing new clients, Credit Clear has seen a material increase in referrals from existing clients.
The company said the increase in volume was anticipated for two reasons. Firstly, there has been significant pent-up demand created by regulatory restrictions and self-imposed limits put in place during the past two years in response to COVID-19.
Secondly, the broader macroenvironment, including a sharp increase in cost of living, is resulting in an uptick in customer accounts falling into difficulty and being referred to Credit Clear.
In South Africa work with Credit Clear’s local partner Techub continues with digital messages being sent, payments processed, and payment plans established.
Optimisation, workflow strategy and country customisation works are ongoing. Credit Clear and Techub have begun with SMS campaigns and will soon add email messages and WhatsApp to the workflow.
The company said broader opportunities within the larger iSON Xperiences Group continue to be uncovered.
Credit Clear is currently offering 17.4 million new shares at 43¢ each in a placement to raise $7.5 million.
The new shares are being offered at 6.5 per cent discount to the Tuesday closing price and represent ~5% of Credit Clear’s shares on issue.
Funds raised are set to be used for its growth strategy, including developing technology to onboard clients, increasing the level of automation in its offering and create efficiencies in customisation requirements for new clients.
Credit Clear CEO Andrew Smith said the company was winning business at an unprecedented fast rate, “faster … than I have ever previously experienced in this industry.”
“This is because of our technological advantage that can provide clients with an immediate uplift in performance.
“We also win business because our technology is supported by a full-service offering, where we bring a modern and holistic end-to-end approach to account receivables management.”
However, he said as previously flagged with investors the volume of new clients has become a real challenge to onboard.
“While this is a fantastic problem to have, it nevertheless is one that needs to be solved,” he said.
“The additional capital raised will allow us to quickly build a scalable solution to client onboarding that allows the business to grow unrestrained into the future in Australasia and internationally.”
This article was developed in collaboration with Credit Clear, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.