Stargroup enters the finance market
ATM and point of sale terminal operator Stargroup has entered the small business finance market with an offer that includes using a POS terminal for repayments.Stargroup subsidiary StarPOS Pty Ltd has signed a joint venture agreement with First Class Capital to market First Class's Retail Merchant Advance product to its POS terminal customers.First Class Capital's RMA product is a cash advance offered to retail businesses that have POS facilities.Stargroup said in a statement that the cash advances are repaid from sales going through POS terminals. The amount of the advance is based on the historical average monthly credit and debit card sales going though the retailer's terminals.First Class Capital has been in the small business finance market for 13 years. Its funding comes from a managed investment scheme. Its directors include Rodney Green, former head of Perpetual's investment division, and John Thomas, former manager of the Howard Mortgage Trust.Stargroup, which is listed on the Australian Securities Exchange, has had a busy year. In July it merged with iCash Payment Systems, creating a combined fleet of about 120 ATMs.Last month it acquired Cash Plus Australia's network, taking the size of its ATM fleet to 230 machines processing about 1.8 million transactions a year.