Industry sources suggest the company is looking to raise up to $13 million in new funding through a share placement.
CML Group’s core business is invoice factoring or debtor finance.
What this means is that it provides its clients with access to cash while they are waiting for their clients to pay invoices.
The company charges an admin fee of around 1.2% of the total invoice amount and interest on the invoices funded at around 10% per annum.
Risen to #2 in the space through growth
The company has established itself as the clear number two in the non-bank invoice factoring business in Australia.
This is a result of strong organic growth and the acquisition of three competitors within 2.5 years.
The recent acquisition of Thorn Group’s (ASX:TGA) trade and debtor finance division further strengthens this position.
On track to exceed $1.1 billion in invoice turnover
Invoice turnover for FY17 exceeded $1 billion, representing 15% market share and this is tracking to exceed $1.1 billion in FY18.
The company has guided FY18 EBITDA to over $15.5 million, which does not include the recent Thorn Group acquisition.