Payment platform provider QuickFee (ASX: QFE) has passed its second milestone of achieving record lending levels meaning the company will now issue further stock to QuickFee US employees and to vendors that facilitated a $13.5 million capital raising earlier this year.
Following the success of QuickFee Australia, a separate US branch was established in 2016 but pursuing the same business model in a far larger market, and, with few competitors.
The rapid success and take-up of its novel offering led to QuickFee Australia and QuickFee US becoming one single entity in July 2019 with parent company QuickFee Ltd acquiring both Quickfee Australia and QucikFee US as part of a sweeping acquisition.
With the company unified at the board and operational level, earlier today QuickFee issued a statement to the market stating that it had achieved its second milestone of contracting 300 new firms.
This follows the completion of its first milestone in September when the company exceeded US$15 million (A$21.8 million) in total loans in the US.
As of this month, the company has obtained 306 contracted firms which activates the issuance of an additional 5.9 million shares to QuickFee US employees, including 2.93 million shares to chief operating and financial officer James Drummond and 3 million shares to the company’s vendors.
Looking forward, QuickFee is also aiming to attain its third and final milestone – to achieve US$6 million in aggregate value of currently held loans made to US users by 9 July 2021.
However, with market conditions remaining strong it’s expected that the third milestone will be met far in advance of the target date.
As part of a regulatory filing, QuickFee said that in the month of October 2019 the company had “strong momentum” in lending activity and had achieved “record results” in both Australia and the US.
Currently, the payments platform provider serves over 1,200 firms worldwide and undergoing consistent growth.
QuickFee reported that lending in Australia hit $4.2 million, up 23% on a year-on-year basis while US lending topped $2 million, up 133% relative to what it had achieved in October 2018.
The payment solutions market has experienced across-the-board improvement with strong uptake amongst customers which helped QuickFee to sign up 30 new firms to its proprietary platform in October alone.
Facilitating professional services
QuickFee’s core business offering is facilitating companies to obtain faster payments and helping them avoid late payments altogether as part of an “enhanced payment experience”.
Around a decade ago, the company began operations after developing a unique payment gateway for Australian accounting and law firms, allowing them to accept monthly payment plans and thereby breaking up large bills into smaller chunks for their clients.
As part of its offering, QuickFee enables more people to obtain professional services while ensuring that deferred or missed payments are avoided.
The company claims it can help professional services firms such as accountants and lawyers to “never be paid late again” which ultimately improves cash flow and future operational certainty. QuickFee provides three flexible digital payments options including Automated Clearing House, credit card and payment plans.
“The solid growth being achieved by the Australian team is very pleasing as is the fact that the new additions to the US sales team are already contributing to the strong growth momentum in that business,” said QuickFee chief executive officer Bruce Coombes.
Mr Coombes also said that record results validate the purchase made earlier this year and provide a “high level of confidence” in the US sales team with US operations set to deliver an increased portion of the company’s overall growth globally.