Earlypay Acquires Selected Assets of Timelio

ASX-listed Earlypay has revealed its plan to acquire selected assets of Timelio, a specialist invoice and trade financing provider. These assets include certain customer receivables, intellectual property, software, and other assets. However, it’s important to note that Timelio will retain the cash balance released from its existing warehouse funding structure.

About Timelio

Established in 2015, Timelio has been serving a diverse range of small to medium-sized customers across Australia. It provides specialized services in invoice and trade financing, attracting a high-quality portfolio of clients.

Strategic Importance of the Acquisition

Although the acquisition is relatively small-scale, it holds strategic significance for Earlypay. It will bring in approximately $35m of Funds in Use (FIU) in core invoice finance product along with around $5m in FIU in trade finance product.

It’s worth mentioning that many of the customers now joining Earlypay came to Timelio through its acquisition of the Bendigo Bank invoice finance portfolio in 2022. Earlypay has carried out extensive due diligence on the receivables portfolio to ensure it aligns with their current risk appetite and underwriting standards.

Acquisition Cost and Future Plans

The transaction will cost Earlypay around $3 million along with the assumption of roughly $200,000 of employee entitlements.

James Beeson, Earlypay’s Chief Executive Officer, expressed his enthusiasm about the acquisition. He sees this as an exciting new chapter in their journey towards becoming Australia’s leading working capital provider to SMEs. The addition of the Supplier Early Payment business adds a strategic and complementary product to support the working capital needs of SMEs, signalling a promising future for Earlypay.