NTA discounts invoices and disclosure

Ian Rogers

Fringe lenders, often new suppliers, are climbing out of the detritus of the GFC and adding to the supply of credit in the Australian economy.

One newcomer is NTA Securities, a Sydney-based firm that will provide working capital and debt finance secured against invoices, a business lending niche under-served by most banks.

Banking Day most recently reported that the debtor finance market marked time during the 2013/14 financial year, with invoice discounting and factoring turnover up just 0.6 per cent over the 12 months.

The Debtor and Invoice Finance Association reported that the sector's turnover for the 12 months to June was A$63.2 billion, compared with $62.8 billion in 2012/13. The market has scarcely moved since 2011/12, when turnover was $62.4 billion.

June quarter turnover was $14.9 billion, compared with $15 billion in the March quarter and $16.7 billion in the December quarter.

The bulk of the business in the June quarter ($13.6 billion) was invoice discounting, where the seller of the trade debts retains the accounting and debt collection functions.

Factoring (where the finance company takes over the accounting and debt collection) accounted for $1.3 billion of turnover.

The number of clients grew 0.6 per cent, year on year, to 4499.

Established as an unlisted public company in November 2013, NTA Securities first marketed secured debentures that year.

ASIC Connect lists no disclosure documents for NTA since that time. Nor is there any financial disclosure in an information memorandum circulated this week by the company, aimed at "eligible investors."

Under its latest offer NTA is seeking to place  $5 million in secured notes offering a return of 9.5 per cent for two years.

The members of the board are Lindsay Kirschberg, Anthony Simpson and Stephen McIsaac.

"Each board member has over ten years experience in the finance sector," the info memo says.

The memo is thin on the work history of directors, and the internet profile of each is low.

Kirschberg and Simpson hold executive positions in NTA "and are key persons in the management of the business. They are supported in the day to day management of the issuer by a dedicated team and third party providers," NTA said.

The trustee is Lowell Capital Limited.