Business finance company Earlypay has bounced back from the COVID slowdown, with record results in the December half-year.

The company reported “unprecedented” new business volume in its core invoice financing business and it reactivated its dormant equipment finance operation.

Invoice finance volumes rose 35 per cent, compared with the previous corresponding period, to A$1.2 billion.

Earlypay chief executive Daniel Riley said there was significant growth in new invoice finance client numbers during the half.

He said retention also improved – a result of the drop in business failures over the past couple of years.

The average client used to be on the books for three-and-a-half to four years but that has increased to four to five years.

Equipment finance volume rose from $18.3 million in the December half 2020 to $44.2million in the latest half.

Revenue rose 24 per cent to $27.1 million. Total expenses were up 21 per cent to $14.4 million – a result of higher broker commissions on new business and non-cash provisioning on receivables growth.

Net profit of $6.9 million was up from $2.8 million in the December half 2020.

Riley said a significant development during the past six months has been a reduction in the company’s interest expenses, which fell 17 per cent year-on-year.

The company was able to increase facility limits in its invoice finance warehouse and its equipment finance warehouse at sub-3 per cent.

Earlypay is bullish about ongoing business conditions and yesterday upgraded its full-year earnings outlook.