CML Group has completed its acquisition of an invoice finance platform, after paying $2.25 million in cash and shares.
The parent company of Cashflow Finance and Classic Funding Group has finalised its purchase of online invoice finance platform Skippr for an initial payment of $2.25 million (via a mix of cash and scrip).
Should all earn-out hurdles be met (and depending on performance targets being achieved by December 2022), the deal will gain a maximum transaction price of $6.5 million.
The acquisition will see Skippr’s online invoice finance platform combined into CML Group’s current Cashflow Finance and Classic Funding Group offerings to launch an expanded product.
The platform works by integrating with a client receivables book via accounting technology, such as Xero or MYOB, to provide “transparency over new invoices and efficient approval for funding, simple and automated payment reconciliation and real-time oversight of account transactions”.
As first announced in July, the acquisition aims to help CML access smaller clients (with receivables books below $200,000) more profitably and “improve client retention through a better and more automated user experience for existing and new clients”.
CML’s expanded product will be launched next month under a new brand, which is currently being developed.
Speaking to The Adviser following the announcement, CML Group CEO Daniel Riley revealed that the expanded product will “improve accessibility of invoice finance for a wide segment of SMEs, with streamlined onboarding and a largely automated experience for clients”.
He said: “For the first time, CML will make the product available to businesses selling to consumer customers (previously, CML financed clients with B2B sales only). This will broaden CML’s addressable market and provide a tool for many businesses to offer credit terms to consumer clients – for example, tradies will be able to utilise the product to offer credit terms to residential clients.”
Mr Riley concluded: “CML is preparing to launch its expanded product to brokers and believes the expanded product can support many businesses across a broad credit spectrum in the months ahead.”
[Related: ScotPac and CML merger off the table]
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Annie Kane is the editor of The Adviser and Mortgage Business.
As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts.
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