Spenda Agrees to Sell Invoice Finance Portfolio to Grapple Invoice Finance Fund for USD 2 Million
Spenda, a leading financial services company, has recently announced a major deal with Grapple Invoice Finance Fund. The agreement involves the sale of Spenda’s invoice finance portfolio to Grapple for a whopping USD 2 million, pending portfolio performance.
This strategic move is expected to not only strengthen Spenda’s balance sheet but also reduce risk exposure and enhance revenue generation through a new referral agreement with Grapple. The companies are committed to meeting the evolving needs of their clients and users while ensuring compliance with industry regulations.
The sale of the loan book marks the beginning of Spenda’s strategy to restructure its balance sheet and release capital. With a proven software system in place for managing financing flows, credit processes, risk management, and payment reconciliation, Spenda will also have the opportunity to onboard third-party lending products through revenue sharing agreements with Grapple.
In addition to the USD 2 million sale proceeds, the sale will release USD 2.3 million in first-loss capital, further recapitalizing Spenda’s balance sheet and providing an additional USD 4.3 million in working capital. Operational savings of approximately USD 600,000 per year are also expected.
While the sale may result in a slight reduction in gross profit initially, cost savings and the growth of other product lines are projected to offset this impact and improve overall operating margins. Spenda is set to transition its income stream towards bundled Software-as-a-Service (SaaS) and payment tools, aiming to increase margins and eliminate lending and credit risk.
Overall, this deal between Spenda and Grapple represents a significant step forward for both companies, setting the stage for continued growth and success in the competitive financial services industry.
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