Receivables finance company CML Group will increase its invoice discounting business five-fold with the acquisition of Classic Funding Group.CML announced yesterday that it has entered into an agreement to purchase 100 per cent of the shares of Classic Funding Group for A$11 million. Classic is a locally-owned company with 25 years' experience in the invoice discounting and equipment finance markets.It has an invoice discounting loan book worth $30 million, around 40 clients and $400 million of annual turnover. The business is funded through a $45 million warehouse facility provided by a major Australian bank.CML has seven invoice discounting clients, an $8 million loan book and around $100 million of annual turnover.Classic's equipment finance business is financed through a separate $130 million warehouse facility provided by a major Australian bank. The loan book is currently $100 million.CML's core business is factoring, which accounts for 80 per cent of funds advanced. It has been in equipment finance and invoice discounting for the past two years.Post-acquisition, equipment finance will be the biggest part of the business, making up 47 per cent of funds advanced. Invoice factoring will make up 39 per cent of funds advanced and invoice discounting 14 per cent.CML reported a net profit of 8.4 million for the year to June - a 164 per cent increase over the previous year. Group revenue rose 2 per cent to 47.7 million.