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Invoice Finance Group has welcomed a new strategic investor deal to help it expand and enable more brokers to service SME clients.
Brisbane-based Invoice Finance Group (IFG) has confirmed WeDo Business Services has taken a stake in the business (effective 10 October), which has doubled IFG’s funding capacity.
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The mutually beneficial deal will allow IFG to service growing demand for small-business funding, while giving UK-based WeDo a foot into the Australian market.
The boutique finance company IFG, which specialises in invoice finance solutions, said businesses were struggling to bounce back from the pandemic amid the growing economic instability.
In fact, CreditorWatch’s latest data revealed more than 5,000 businesses could be at risk of default over the next 12 months, as the effect of rising interest rates and inflation begins to take hold.
IFG director Paul Tonges said this strategic deal will boost IFG’s capacity to help their broker network secure business funding for more SMEs.
“It ensures IFG is able to offer brokers a deeper selection of working capital product choices and solutions for their customer base, Mr Tonges said.
“This strategic investment will allow IFG to better service our existing clients and attract new customers by allowing us to offer a broader range of finance products and a larger deal size."
Weighing in, director Angela Tonges said she was “very excited” about the next chapter of IFG’s growth strategy.
“We’re delighted to share a common alignment in our vision and values with our new investors, by continuing to exceed our customers’ expectations,” Ms Tonges said.
UK-based WeDo, which provides invoice and trade finance, start-up funding, as well as IT and digital services to SMEs in the UK, said it was an opportunity to break into the Australian market.
“WeDo has been built on a simple model of delivering Invoice Finance in a transparent and value-added way, working with clients to ensure they get more than they expect,” director Mark Lindsay said.
“We envisage it will be business as usual for the foreseeable future, though we are excited about the additional growth opportunities.”
The deal comes ahead of The Adviser’s SME Broker Bootcamp — which is due to take place across three states in November — where brokers will hear about why diversifying into SME lending and servicing business clients could be beneficial for their brokerages, how they as financial professionals could play a critical role in managing SME clients’ funding requirements during these challenging periods to meet their growth profile and working capital requirements.
Brokers will also learn about the financial gains and risk/reward payout of diversifying, how long it could take, the skills required to successfully tap into SME lending, and the key to producing quality lending submissions to meet clients’ funding needs.
The event will be held in the following locations:
- Thursday, 17 November: Waters Edge, Portside Wharf, Brisbane
- Tuesday, 22 November: Parkroyal Parramatta, Sydney
- Thursday, 24 November: Crown Promenade, Southbank, Melbourne
Click here to register for free and make sure you don’t miss out!
For more information, including agenda and speakers, click here.
[Related: Business insolvencies feared:CreditorWatch]
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