Just a summary for newbies wanting to invest into this stock and dont understand what it is about.
Essentially lawyers and accountants charge a client for their services. The client may not have the funds up front, so they select Quickfee.
Quickfee essentially pays the law/accounting firm the amount owed, and inherits the debt, in which the client must repay back within 3-12 months(their is a credit check first). Interest is incurred. Types of revenue include - interest received from clients, application fee revenue (each application made), platform fee revenue (this is the set up as well as recurring revenue for their personal platform/software), merchant fee revenue.
In terms of expenses - essentially its really consulting fees as well as employee benefits, superannuation, marketing and travel (U.S/interstate etc). Others include accounting, computer costs, bad debts (minimal) and commissions.
Its a win win for both the firm and clients. The firm receives full payment within days to invest in further clients, reduce debtor days etc. Clients have the ability to pay back over a period of time, not making them constrained with cash, and freeing up their cashflow.
With the above point alone, I believe this is an easily sell-able product to almost all lawyer and accounting firms, hence the growth quarter on quarter will be exponential. Its a no brainer to be taken up by firms, as clients will want that ability to pay back over a period of time, whilst also the firm will want to receive full payment as ealrly as possible, in this case in a matter of days.
Quickfee also have a software where the firm is able to monitor debts/payments etc - mentioned above in the revenue (platform fee revenue)
With that summary alone, you can see why, at only 66 million MC how this is undervalued. QFE generated 6 million in revenue, with a PY of around 2 mill (300%) growth. The more lending they generate the more income received, which based on todays report, shows QFE lending is increasing at a rapid rate.
If you look at other BNPL companies (even though QFE isnt exactly the same as it has next to no competition) you will see how grossly undervalued this company is.
As always DYOR
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QFE Price at posting:
46.5¢ Sentiment: Buy Disclosure: Held
