Spenda Ltd (ASX:SPX) has clocked a 73% increase in the utilisation of its debt warehouse facility, further drawing $2 million since the end of the March quarter.
Consequently, the projected annual recurring revenue (ARR) tied to this growth is an estimated $462,000, based on the assumption of full utilisation of the drawn funds at a current yield of 21%.
Complementing this strong lending performance, the company also reported a significant acceleration in its payments volumes, processing $27.2 million in the two months of April and May 2023 alone - a substantial rise from the $22.5 million processed in the first quarter of the year.
The fintech firm achieved this growth through the acquisition of new customers won from a set of industries, including food and beverage, transport, logistics (gig economy) and labour hire.
Overall, the ARR on all funds deployed is anticipated to hit the $3 million mark, provided the yield of approximately 21% is upheld.
“Key leading indicators”
Spenda managing director Adrian Floate said: “The increase in lending and payment volumes is exactly what we would expect to see as our increased onboardings begin to show in our key leading indicators.
“Proving on-demand lending through the Spenda platform is a very compelling offer for our customers.
“The convergence of lending, payments and software that improves business efficiency is what sets us apart from our competitors and is starting to generate significant market momentum.”
Drive growth
Establishing its debt warehouse facility in August 2022, Spenda procured up to $50 million, intending to drive growth.
The additional $2 million drawn recently has brought the total funds drawn to $13 million, or $14.4 million when factoring in the company's first loss capital contribution.
This financial narrative underscores Spenda's continued strategic success and powerful momentum in the market.