Credit Clear set to list on ASX as delinquent payers set to rise

Australian fintech company, Credit Clear Limited (Proposed ASX: CCR), are planned to list on the exchange on October 27, after raising $15M at a price of $0.35 per share, giving the company an indicative market cap of approximately $79M. 

Not to be confused with a BNPL, Credit Clear specialises in the management of receivables solutions. Their technology platform, which began development in 2015, manages the billing and communication requirements of their clients. The platform went live two years later in 2017, the company reporting that their way of operations allows for faster payment reconciliations, better customer engagement and insights, and lower costs when compared to more traditional methods. 

The company also has a diverse range of clients, ranging from SMEs, large corporations , telecommunications companies, private health, councils and other government agencies. Credit Clear have recently acquired Credit Solutions, a traditional receivables management company with over 800 clients themselves, allowing Credit Clear to now offer a holistic and comprehensive service for all their clients. 

The company reported that their FY20 revenue (pro forma) in their more traditional collections was negatively affected by COVID-19, however, in the digital collections business, it was not largely affected, increasing 42%. The company has been successful in growing their revenue year on year from FY18, however they are still yet to be profitable for the same period, recording a net loss of approximately $1.M in FY20. 

*Listing dates