Global payment solutions provider Splitit Payments Limited (ASX:SPT) has signed a US$150 million receivables funding facility with Goldman Sachs Bank USA to support the expansion of its business.
The new three-year revolving facility complements the company’s strong balance sheet and is a key element of its growth and capital management strategies for 2021 and beyond. The facility is lower cost than Splitit’s existing funding and its use is expected to increase Splitit’s gross margins over time.
CEO, Brad Paterson, said facility will provide merchant funding for Splitit’s major markets along with a structure to facilitate additional jurisdictions over time, subject to legal due diligence.
This large committed facility from Goldman Sachs is a key pillar of our Merchant Sales Volume growth strategy,” Mr Paterson said.
“Demand from merchants in the US and Europe for our funded model has never been stronger, and coupled with our existing strong balance sheet, we now have the foundations in place to accelerate our growth plans whilst also driving improved margins.”
Splitit enables merchants to improve conversion rates and increase average order value by giving customers an easy and fast way to pay for purchases over time without requiring additional approvals. Serving many of Internet Retailer’s top 500 merchants, Splitit’s global footprint extends to thousands of merchants in countries around the world.
