Butn hits 3rd consecutive quarter of record originations

In its latest trading update, ASX-listed lender Butn has reported a 73 per cent increase on the previous corresponding period (pcp) as well as a 10 per cent increase on the previous quarter.

The small-business lender revealed yet another month of record originations at $39.3 million, making it the eighth record origination month that the lender has reported in the past nine months.

Butn’s platform originations hit $10.9 million for the month of December, which were around 28 per cent of that month’s total originations.

The lender stated in the report that the month’s total originations demonstrated “the significant benefits in Butn’s embedded funding technology to leverage and deepen existing strategic partnerships”.

Platform originations surpassed $29 million in Q2 FY23, compared with approximately $3.6 million in the pcp.

Furthermore, the lender’s revenue margin also increased to 2.6 per cent, up from 2.1 per cent in the pcp, which saw Q2 FY23 revenue of $3 million, up 119 per cent on the pcp.

Butn stated these revenue figures reflected “a significant improvement in industry mix to higher-margin segments, increased contribution of higher-margin platform originations and pass through of some pricing adjustments.”

Butn co-founder and co-chief executive, Rael Ross, commented on the update: “Butn continues to deliver sustained record performance, with originations at record levels for both the quarter and the month of December.

“In addition, our business delivered quarterly revenue double that of the previous corresponding period, demonstrating the growing need for our fast, secure, and reliable funding for SMEs facing challenging market conditions.

“Growth in our platform channel is driving record originations at increasing revenue margin with no additional operational staff, supporting our mass distribution strategy through increased operating leverage.”

Mr Ross further stated that the lender continues to deepen reach across strategic channel partners with its cash position and increasing debt facilities “providing growing momentum in FY23 and beyond”.

In 2021, Butn partnered with SME lending platform Lend to provide brokers with access to up to $10,000 in advanced commissions.

Mr Ross commented at the time: “Like all businesses, we recognise that brokerages, whether large or small, can often gain immediate benefit from a cash injection.

“Getting an advanced commission product is the perfect solution to the common comment of ‘I wish I could be paid my commission now’ to help alleviate cash flow crunches or materialise an opportunity.”

[RELATED: Butn reaches new monthly origination record]

Written by Reporter

Last Updated: 24 January 2023

Published: 25 January 2023