Great summary Kristian. Was a very interesting seminar and the QFE CEO seemed VERY bullish on the company's prospects for expansion into other smaller accounting/law firms, plus also other services like surveyors, architects, etc.
There were a lot of questions asked by listeners post presentation, could be a few new SPT investors coming on board soon I daresay.
Some extra points: - Post capital raise QFE have sufficient funds available to fund over US$100m in lending through the new SPT product, if this becomes exhausted due to huge demand Bruce mentioned the bank would be 'very happy' to provide any extra cash to fund more growth in the product offering. - QFE have a period of exclusivity to use the SPT product. As Kristian mentioned above there are no current competitors in the market with an installment payment offering at such a competitive 4.9% rate. - QFE's other installment option where the consumer pays ~9% to access instalments will continue to run side by side, but consumers will no doubt be attracted to use the 'free' option presented to them via the SPT solution. - There was a question about 'why can't QFE just copy Splitit's product and offer it themselves?' - to which Bruce mentioned that the SPT product is patented and highly sophisticated, so he is extremely happy to partner with SPT and simply use their product for split of revenues.
- QFE are building an online sign up process for prospective merchants to be signed up within a day (there will be some big targeted marketing spend to secure new clients)
Overall I think this is a great deal for both SPT and QFE. SPT is in a very good position as they don't need to fund the loans, will receive a clip of the 4.9% charged by QFE to the business, plus QFE will do all the leg work to expand/market/drive use of the product. As QFE grows so too will the revenue for SPT - and with minimal further investment.
If this is successful, once the exclusivity period ceases I can see a huge market available for SPT to partner with globally.
SPT Price at posting:
$1.43 Sentiment: Buy Disclosure: Held
