QuickFee shares climb after revealing its lending products have taken off in the USA
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QuickFee (ASX:QFE) was one of this morning’s biggest winners after revealing solid growth in its US business.
QuickFee’s solutions aim to smooth out cashflow for professional services firms by taking on bills upfront and offering an extended payment plan for those firms’ clients.
The company revealed its PayNow solution processed US$76.4 million ($98.19 million) in April 2020 alone – equating to an annual run rate of US$900 million ($1.16 billion).
It’s Instalments product – which works similar to PayNow but in being interest free is effectively a BNPL product – performed well too.
While it was only US$180,000, this was up 600 per cent from the previous month.
The company also performed well in Australia, lending $3.5 million which was also the highest month in FY21. It said its performance Down Under reflected the cessation of the JobKeeper wage subsidy.
CEO Bruce Coombes said the results were impressive and he anticipated further growth.
“We remain very excited about the growth in our payments platform in the US and the scale that we are building,” he said.
“As we increase our focus on both new merchant sign-ups and existing merchant usage, we expect to see ongoing growth in transaction volumes and further scale benefits.”
Stockhead has contacted the company for further comment.
The company also revealed it had hired a US investment bank, D.A. Davidson, to secure further funding for the company’s loan book. As well as this it said it had entered into a term sheet with an unnamed global finance company.
Shares rose by as much as 28 per cent this morning.