GOLD Coast-based global trade exchange business BPS Technology has finalised a $100 million agreement with a major small business finance provider.
Under the deal, BPS Financial, a subsidiary of the listed BPS, will market finance products to its small and medium enterprises through the agreement with fintech GetCapital.
The deal will provide a new finance product channel for the 36,000 merchants throughout BPS’ business networks, including Bartercard, Entertainment Publications and bucqi.
It comes after BPS recently opened an insurance products channel through Honan Insurance and sealed an agreement with online retail firm Alibaba partner, SmartTrans Holdings, to gain preferential entry into China for its Australian members.
GetCapital is a finance lender to Australian SMEs.
It also offers a range of credit facilities including working capital, trade and equipment finance and has relationships with OzForex, Alibaba, Xero and Qantas’ Acquire program.
BPS said it will initially target growth finance opportunities and working capital finance for its members with the GetCapital deal.
GetCapital will make up to $100 million available in the initial year of the agreement.
BPS will receive an upfront and ongoing commission on each transaction, which begin on November 1.
Tony Wiese, BPS Chief Financial Officer, said BPS was responding to feedback from existing members looking for better access to working and growth capital.
“Through the partnership with Get Capital, BPS will now offer real cash finance as well as trade dollars to support our merchant’s growth,” he said.
Jamie Osborn, CEO of Get Capital, said it will deliver to BPS’s clients “innovative financial products and exceptional speed” and leverage the company’s relationships with players like Alibaba, OFX, Xero and Qantas.
“We are very proud to be (BPS’) first finance partner,” he said.
BPS shares closed steady at 94¢.
Source: Jenny Rogers, Gold Coast Bulletin
Published: September 9, 2016 12:00am
Link to original article: http://www.goldcoastbulletin.com.au/business/bps-technology-inks-100-million-deal-to-provide-finance-to-its-36000-strong-member-base/news-story/ab597aa19565020f737927be565635d5