Credit Clear signs 25 new clients to accounts receivable platform
Credit Clear noted the new clients offered upsell and performance based opportunities for further revenue.
Receivables management provider Credit Clear (ASX: CCR) has reported strong progress in March, signing 25 new clients and adding over $2 million in annualised revenues.
The clients included a large Victorian government statutory service provider; the City of Stirling council in Western Australia; a non-bank lender providing consumer loans; and an ASX-listed car parking technology business with international operations.
Together they represent over $2 million in anticipated additional revenue for Credit Clear over the coming year, with performance-based and upsell opportunity across each account.
Chief executive officer Andrew Smith said the new client wins recognise the company’s end-to-end payments solutions provided on its platform.
“It is this performance advantage that will see continue to add material new clients that provide all the inputs for strong revenue growth into the future,” he said.
While the minimum value of the individual contracts was not considered financially material, the cumulative total of the new wins represents a material increase in group revenues.
The March client wins follow a run of 18 new clients signed up in February for a total $1.5 million in annual revenue.
“We plan to capitalise on significant performance-based and upsell opportunities generated by the new influx of clients from market niches such as financial technology, financial services and insurance,” Mr Smith said.
Revenue run rate
Since acquiring Australasian debt collection company ARMA Group this year, Credit Clear’s revenue run rate has exceeded $30 million a year and is expected to accelerate as the combined entity gains market share and expands internationally.
The $46 million acquisition was announced in December and aimed to accelerate Credit Clear’s growth by leveraging its scalable digital billing and communications technology platform across ARMA’s portfolio of more than 400 active clients.
The addition of ARMA’s senior sales force is expected to open up new markets for Credit Clear in metropolitan and regional New South Wales as well as New Zealand, and broaden its exposure beyond insurance and commercial to embrace the consumer, education and parking sectors.
The rationale behind the companies joining forces was to provide a hybrid account receivables collections service with upsell and cross-sell opportunities.
Within the first eight days of ARMA’s digitisation, $722,000 had been committed in payment plans, with a further $127,000 received in digital payments.