Ann: Sale of RevRoof Pty Ltd and Credit Loss Provisioning, page-26

I think as Cashflow Finance they had a fairly well formed business which had been running for a while when they spotted Skippr and incorporated it, adding Mr Beeson to the board. Their focus does seem to be solely upon the invoice discounting business and I don't think they do anything else. My understanding is that Cashflow FInance was borne from a business which was lending money in the labour hire industry, in turn labour hire recruitment, all under the same management, until recently. ie: not from a traditional lending / invoice discounting background, although their staff have long experience.

We're moving into tough times and they do need to be cautious - in finance the best looking companies can bring some genuine surprises. I expect Rev Roof fell into that category - no warning, one day they got a phone call and the roof caved in, completely out of the blue.

Invoice discounting has been a funny industry over the years - all the big 4 had big time exposure in varying ways, they all got out, then a new raft found it was flavour of the month. Mostly the big players want big invoice books - good quality, diversity, etc and the smaller end is left neglected. In the last several years there was a lot of smaller providers that sprung up, often as IT allowed experienced operators to put up a shop front as an almost one man band. Many of them have gone and the smaller end of the industry remains unserviced. There have been some sharks come and go, particularly among the fintechs, who are now finding out about the tough part of money lending. Anyway, EPY seems to be committed, has some experienced staff and focuses on the smaller end. This foray into a 'larger' customer (although still small end) is likely to have been a lesson learned.