- QuickFee (QFE) and Splitit (SPT) have teamed up to launch a new product in the U.S. and Australian markets
- The interest-free product allows QuickFee clients to pay their invoices in four instalments using SplitIt's system
- The new product will expand QuickFee's market and also help them become a leader in the advice now, pay later market
- In advance of the launch, QuickFee has launched a $17.5 million capital raise via a placement and share placement plan
- Shares in QuickFee have been locked up as a result, with trading expected to resume on September 21
- Shares in QFE last traded for 64 cents each
Fintech companies QuickFee (QFE) and Splitit (SPT) have teamed up to launch a new product in the U.S. and Australian markets.
The duo will form a strategic partnership to launch a new interest-free product, which allows QuickFee clients to pay their invoices in four instalments using Splitit's system.
The companies plan to launch the new product in both Australia and the U.S. legal and accounting markets — significantly expanding the reach of both companies.
In particular, QuickFee estimates it will expand its reach in the U.S. by 2500 per cent, and in Australia by 560 per cent.
The company also said the new product positions it as a leader in the advice now, pay later market — where firms can easily access professional advice without having to pay the full fee upfront.
QuickFee CEO Bruce Coombes has welcomed the partnership with Splitit and said it was extremely beneficial on a number of levels.
"The Splitit pre-authorisation technology means there is very low credit risk to QuickFee and the professional services firm," he said.
While Splitit CEO Brad Paterson said QuickFee had an obvious first-mover advantage in the two markets.
"We are increasingly seeing that people are open to new and responsible ways to pay for products and services that they need right now, so it’s a great time to be expanding into this new vertical," he said.
In order to fund the rollout of the new product, QuickFee has launched a $17.5 million capital raise.
It plans to tap investors and shareholders for additional funds, via a $15 million placement and a $2.5 million share placement plan (SPP).
The new shares on offer are priced at 58 cents each, with over 25 million shares to be issued via the placement. While under the SPP, shareholders can subscribe for $30,000 worth of new shares.
The majority of the capital raised will go towards lending book growth, in anticipation of the new product launch.
Shares in QuickFee have been locked up in a trading halt as a result of the capital raise, with the freeze expected to last until September 21 at the latest.
Shares in QFE last traded for 64 cents each on Wednesday, September 16.