Credit Clear secures $7.5m to assist with onboarding of multiple new clients
Credit Clear expects to add $1.55 million in new revenue over the next 12 months from new business won in May.
Australian receivables management solution provider Credit Clear (ASX: CCR) has secured $7.5 million through a share placement with new and existing investors to support the rapid onboarding of new clients.
The placement comprised the issue of 17.4 million new shares at $0.43 each.
The funds will be used to streamline the company’s onboarding capabilities, creating efficiencies in the deployment of its platform to new clients and expediting revenue generation.
Chief executive officer Andrew Smith said the raising would facilitate the company’s growth in a burgeoning market.
“The number and size of our new client wins has created the requirement to invest in onboarding efficiencies to monetise these new clients as soon as possible,” he said.
“The capital raised will allow us to quickly build a scalable solution to client onboarding which allows our business to grow unrestrained into the future in Australasia and internationally.”
Faster than expected
He said the new business was rolling in faster than expected.
“We are winning new business at a faster rate than I have ever experienced in this industry this is because of our technological advantage which can provide clients with an immediate uplift in performance,” he said.
“We win business because our technology is supported by a full-service offering, where we bring a modern and holistic end-to-end approach to account receivables management.”
The volume of new client work had become a “real challenge” for the company.
“While this is a fantastic problem to have, it nevertheless is one that needs to be solved,” Mr Smith said.
New business
Credit Clear expects to add $1.55 million to its bottom line over the next 12 months from new clients signed in May, which include one of Australia’s largest water utilities, three financial services providers and a TAFE college.
The company has been engaged by one of the financial services firms on a pilot phase where it will have an opportunity to service a $2 billion debt portfolio.
The new clients, plus a material increase in volumes from existing clients, has seen Credit Clear’s active customer accounts climb to 825,000, representing an increase of 136% from June last year.
Mr Smith said it there had also been a material increase in volumes being referred by existing clients due primarily to “significant pent-up demand” created by regulatory restrictions and self-imposed limits during the past two years in response to the global pandemic.
“The broader macroenvironment, including a sharp increase in the cost of living, has resulted in an increase in customer accounts being referred to as account holders find themselves in financial difficulty,” he said.