Credit Clear (ASX:CCR), an Australian technology and debt collection provider, has entered into a $6 million loan facility with the Australia and New Zealand Banking Group (ASX:ANZ).
The move is designed to bolster the company’s acquisition strategy and provide greater financial flexibility as it targets both organic and inorganic growth.
Despite maintaining a robust cash position of approximately $20 million as of late February, the partnership with a "Big Four" bank marks a significant milestone in Credit Clear's growth trajectory, allowing the firm to optimise its cost of capital.
According to the facility details, the loan is subject to an annual review rather than a fixed term, with a monthly principal repayment schedule of $166,667.
The agreement is secured by the company and other parties acceptable to ANZ, with interest rates and fees set at standard commercial terms.
CEO and Managing Director Andrew Smith noted that the facility follows the integration of ARC Europe and DTS, positioning the company to further capitalise on expansion opportunities within Australia, New Zealand, and European markets.
The full drawdown of the funds remains contingent upon the satisfaction of standard conditions precedent, including legal checks and the finalisation of transactional arrangements.
By securing this external funding, Credit Clear intends to maintain its momentum in an expanded total addressable market while preserving its existing cash reserves for operational stability.
At the time of reporting, Credit Clear's share price was $0.20.