Specialist lender QuickFee is pushing ahead with investment in the business, despite mounting losses and growing questions over the buy now pay later business model. 

QuickFee’s core business is a form of receivables finance for accountants, lawyers and other professional services firms. Since its launch in 2009, it entered the US market in 2016 and has added a buy now pay later product, a merchant acquiring and payment processing service, and accounting services.

The company reported a loss of A$13.5 million for the year to June, compared with a loss of $8.5 in 2020/21. Both the Australian and US divisions lost money.

Revenue grew 23.5 per cent to $10.8 million but marketing expenses doubled, general expenses grew 42.4 per cent and impairments were up 49.5 per cent.

The Australian loan book grew 21 per cent to $23.2 million and the US loan book grew 29 per cent to US$6.7 million.

The company has 700 active firms on its book in the US – an increase of 39 per cent over the previous year. In Australia active firm numbers grew 1 per cent to 495.

Capital expenditure over the past year included the launch of a new payments platform, QUBE, which QuickFee said would reduce costs and enhance the user experience.

The company said that, with the completion of the QUBE project, its investment spend peaked in the first half and came down in the June half. It said it has sufficient liquidity to reach “run-rate profitability” by the end of the current financial year.

It said it has liquidity of $16.3 million and a $70 million receivables facility with investment firm Northleaf Capital Partners.