Not sure if I understand this correctly but this is from a recent webinar. Brad is explaining how the Goldman Sachs $150 facility works. The 3 year agreement will allow Splitit to use up to $1.82 Billion worth of funds to go forward with growing the B 2 B part of the business and or financing merchants.
If this goes to plan, Splitit should grow significantly!
Peter: Speaking of which, I was just reading recently you signed a $150 Million facility with Goldman Sachs, I presume that’s to help fund the business as far as paying off merchants, that sort of thing, but maybe explain what that money is actually used for and was it important to get like a blue chip name like Goldman Sachs. I don’t think there’s any bigger name in finance than Goldman Sachs. Was that important to get them on board? Brad: Yeah. So, the $150 Million facility is solely used for advancing funds to their merchants so they can have the cash now and we’ll collect it over time. So, the more we grow, the more that we need to do. That turns into essentially $600 Million plus per annum because the book turns over about four times a year and that’s a three-year agreement so you’re simply looking at $1.82 Billion worth of funds we can advance to merchants over three years.
RBR
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