Perth based listed ATM machine operator Stargroup has struck an innovative deal to resell short term business loans to its EFTPOS customers, many of which are small businesses.
The company recently signed an agreement with First Class Capital Funds Management Pty Ltd to resell its short term loan product to Stargroup EFTPOS clients.
The First Class Capital product is essentially a short term business loan made to businesses that have EFTPOS facilities.
The cash advances are repaid via the future EFTPOS sales of the business, providing a unique working capital facility for business purposes.
The amount of the loans, which are generally repaid in 1 to 6 months, are determined according to the historic EFTPOS sales of the business. No other security is required.
Stargroup are wholesale providers of EFTPOS terminals to businesses and will seek to differentiate their product in the market place with “value adds” such as the First Class Capital loan offer.
As part of the deal Stargroup will also become the preferred EFTPOS supplier to First Class capital clients opening up a new path to market for Stargroup.
Todd Zani, Stargroup CEO, said “For us it’s all about adding value to our offer for our EFTPOS client base and the First Class Capital product is superior to others in the market and provides a seamless, simple and effective additional sales tool for our EFTPOS team.”
