Earlypay to acquire selected assets of fellow Australian fintech Timelio

ASX-listed Earlypay has announced it has entered into an agreement to acquire selected assets of Timelio, including certain customer receivables, IP, software, and other assets. (Timelio retains the cash balance released from its existing warehouse funding structure.)

Founded in 2015, Timelio is a specialist invoice and trade financing provider to a diverse range of small to medium sized customers across Australia.

The acquisition, whilst small, is strategically important for Earlypay as it provides:

• Approximately $35m of Funds in Use (FIU) in core invoice finance product and c. $5m in FIU in trade finance product.
• High quality portfolio – many of the customers joined Timelio through its acquisition of the Bendigo Bank invoice finance portfolio in 2022. Earlypay has conducted comprehensive due diligence on the receivables portfolio to ensure the portfolio meets Earlypay’s current risk appetite and underwriting standards.

The purchase price will be c. $3 million and the assumption of c. $200,000 of employee entitlements.

Earlypay’s Chief Executive Officer, James Beeson commented, “We are delighted to welcome Timelio’s customers and talented team to Earlypay. The transaction represents an exciting new chapter as we continue to build towards being Australia’s leading working capital provider to SMEs. In addition to adding scale in our core invoice financing product, the Supplier Early Payment business adds a strategic and complementary product to support the working capital needs of SMEs, and support Earlypay’s future success.”