- Cirralto (CRO) pens an agreement with eBev.com to provide lending services through its online trading network
- eBev’s network of 12,000 buyers purchase more than $150 million worth of product per annum through the platform, which Cirralto will provide funding against, initially up to a level of $1 million
- The agreement provides for an initial facility term of 12 months and is subject to a 30-day notice period, with eBev being charged at the company’s standard facility rates
- The services are expected to go live within ten days, subject to internal provisioning processes
- Cirralto was up 5.26 per cent, trading at 6 cents per share at 1:10 pm AEDT
Cirralto (CRO) has penned an agreement with eBev.com to provide lending services through its online trading network.
eBev is Australia’s largest independent online ordering and financing platform for beverages. With over 65,000 products from 700 suppliers, eBev is considered a ‘one-stop-shop’ for everything from beer, wine and spirits to non-alcoholic drinks.
The agreement between Cirralto and eBev will see debtor finance services provided to eBev through Cirralto’s wholly owned subsidiary, Invigo.
eBev also made an application for Cirralto to deliver payment services through its trading platform.
eBev’s network of 12,000 buyers purchase more than $150 million worth of product per annum through the platform, which Cirralto will provide funding against, initially up to a level of $1 million.
The agreement provides for the services to be expanded to a $3 million funding limit at least three months after initial drawdown, then up to $10 million funding limit, subject to review.
The partners intend to build upon this initial agreement, to include the provision of Buy-Now, Pay-Later and payment gateway services, which will include Cirralto processing all payments made through eBev’s network.
The agreement provides for an initial facility term of 12 months and is subject to a 30-day notice period, with eBev being charged at the company’s standard facility rates.
Cirralto said revenue will be dependent on usage, however it expects revenue generated under this agreement to be material.
Cirralto said its revenue will be derived at an effective rate of 1.35 per cent of eBev’s funded transactions.
Adrian Floate, CEO of Cirralto, said the agreement is another example showcasing the appetite for its business-to-business finance products.
“The resources we have invested to build out our payments and lending infrastructure means we are now well-positioned to satisfy a vast scope of demand,” Mr Floate said.
“Given the similarities in business ideologies between eBev and Cirralto, I see this agreement being the first step in a growing relationship.”
The services are expected to go live within ten days, subject to internal provisioning processes.
Cirralto was up 5.26 per cent, trading at 6 cents per share at 1:10 pm AEDT.