Diversified non-bank lender Financial Resources Ltd's related company QuikRent Pty Ltd has signed an agreement with Police and Nurses Credit Society Ltd for the provision of consumer credit products.
The products will be used to fund the rental and loan product applications secured through QuikRent's retail distributors.
It is anticipated that these products, which are in the final stages of development, will include FRL branded credit cards and tailored consumer credit facilities.
Financial Resources managing director Barry Samuels said the development by QuikRent of a competitive advantage and differentiation through a market driven plan of new products would create increased income and new diversified revenue sources for FRL.
"The implementation of QuikRent's web-based platform for application processing will provide better customer service and higher quality client approval rates."
Mr Samuels said from June this year, FRL expects QuikRent to be making $54 million worth of contracts across Australia with QuikRent writing up to 1,500 lending contracts per month.
In November, FRL took a 75 per cent stake in QuikRent.
FRL made its debut on the ASX in August 2003 through WA-based listed entity Transact, which acquired the business and re-listed as FRL, raising $1.53 million at an issue price of 20 cents a share. At noon, FRL shares were trading at 25.5 cents.
QuikRent specialises in leasing, rental and lending for commercial equipment and high volume consumer goods in what is high margin sector of the market.
