“We don’t want someone jumping on Google, or calling their broker, or calling their bank, if they can access B2B funding products with the click of a button.”
Butn provides funding to customers on a transaction-by-transaction basis for a fixed fee, and adds a clickable button to software platforms that can trigger instant financing.
Since inception in 2018, the company has conducted $700 million worth of transactions, and has kept bad debts to about 0.03 per cent.
“There’s been a small increase during the COVID-19 period, but we’re working off an exceptionally low base,” Butn chief financial officer Darryl Lasnitzki said.
The Agentbox partnership aims to free up cash flow problems for real estate agents needing to pay for office costs, while also bringing forward commission payments for agents selling one or two properties a month and waiting 42 to 60 days for settlement payments.
Ready Media Group and Butn have developed a buy now, pay later option for commercial property vendors who require funding between settlement dates.
Butn has a relationship with MYOB whereby it provides instant financing to small business customers managing cash flow issues.
Mr Ross said the recent integrations had shown the underlying technology was becoming more adaptable and the application programming interfaces stronger.
“We also think B2B is heavily commoditised, with Visa doing it, PayPal doing it and Afterpay doing it,” Mr Ross said.
Following a $20 million float in July, Butn’s market capitalisation is now about $56 million, although Mr Ross said register concentration exacerbated investor movements on the ASX.
“We’re not too worried about the share price. That will take care of itself,” he said.
“The tradable volumes are considerably low, which has depressed the share price, and we have a very concentrated register.”
Mr Ross has retained a 22.6 per cent holding in the company and so too has his fellow co-founder and co-CEO, Walter Rapoport.
MYOB holds 19.9 per cent of the company, with Regal Funds Management holding 10.95 per cent.