Receivables management company Credit Clear has raised A$7.5 million via a share placement, the second time this year it has raised capital to fund its ambitious expansion plans.
In January it raised capital to fund the $46 million acquisition of debt recovery company ARMA Group Holdings.
Yesterday it announced that it will use funds from the latest capital raising to pay for technology development that will “streamline onboarding and enhance client customisation capabilities”.
Credit Clear chief executive Andrew Smith said in a statement that the company has won “material new clients” this year and the number and size of new clients has created a need to invest in its systems.
Credit Clear was launched in 2015 and was listed on the ASX in October 2020. It offers what it calls a “full-service suite of receivables services, allowing clients to manage communications and payment arrangements with their customers through a digital and mobile interface”.
Its pitch is that it helps clients with better customer engagement and insight, faster payment reconciliations, improved cash flows and lower collection costs.
It also offers debt recovery services. It has already made an acquisition in that segment, buying a company called Credit Solutions in 2019.
Credit Clear made a loss of $7.8 million on revenue of $10.9 million in 2020/21. Cash outflow was $3.9 million.
Smith said the company would be profitable “from July 2022”.