Timelio acquires the bill finance business of Bendigo and Adelaide Bank
A Melbourne-based fintech has announced a deal with Bendigo and Adelaide Bank to acquire its bill finance business.
Cash flow finance lender Timelio has acquired the banking group’s invoice finance business for an undisclosed amount and has entered into an exclusive referral partnership agreement for invoice finance opportunities over the next three years.
The acquisition of the $50 million loan book brings Timelio’s funding book to $100 million.
From March 1, 2022, existing Bendigo and Adelaide Bank customers will transition to Timelio’s platform for bill financing needs. The bank will continue to provide all other banking services.
Timelio said customers will have access to “unique benefits” once on its platform, including same-day financing, a “simple fee structure” and a dedicated specialist support team of qualified accountants.
Founder and Managing Director of Timelio, Charlotte Petris, said: “The agreement will double the size of our business to $100 million in funding and allow Timelio, Bendigo and Adelaide Bank to leverage our respective strengths to enhance results for customers.
“We are delighted with the exceptional growth momentum of our business over the past 12 months. We have seen a 150% increase in our funding volume over this period, including an 80% increase since Goldman Sachs began funding in October. »
Brian Buckle, Head of Specialist Solutions at Bendigo and Adelaide Bank, added: “Timelio’s strong technical solution, deep industry knowledge and customer-focused culture make it an ideal partner for Bendigo and Adelaide Bank.
“Our agreement is part of a strategic move that aligns with our commitment to simplify our business, reduce complexity, and demonstrate our shared commitment with Timelio to ensure our valued customers are well supported to achieve their financial goals.”
The deal follows Timelio’s $270 million warehouse financing agreement with Goldman Sachs, established in October 2021.
The funding – and the new acquisition – enables the fintech to grow its small business loan portfolio against unpaid invoices.
Timelio’s funding has grown 300% over the past three years, with fintech investors including Thorney Investments and Anthony Thomson, co-founder of neobank 86400, which was acquired by National Australia Bank last year.
The fintech, which launched in 2015 and works with the broker channel, has reportedly provided $1.5 billion in funding to its clients. The average size of its loans is said to have increased from $250,000 to $1 million over the past three years.
[Related: Bendigo Bank to launch home loans to brokers]