FAST-GROWING business financier Benchmark Debtor Finance has received a $4 million boost from venture capital firm Foundation Capital.
The capital injection will allow West Perth-based Benchmark to continue its national expansion.
Since opening its doors six years ago, Benchmark has become the largest non-bank provider of debtor finance in Western Australia.
Managing director Peter Langham said Benchmark now handled about $300 million of working capital finance annually and plans to double this in coming years.
“We started in WA but our offices in the eastern States are now writing more new business than our WA operations,” he said.
Mark Dutton, a director of Foundation Capital’s Millenium Fund, said: “We have invested in Benchmark because of the growth potential in both Benchmark and the industry as a whole”.
Foundation has invested $3 million for a one-third stake and will make a further $1 million available on call. Benchmark’s existing share-holders then subscribed a further $0.5 million.
Mr Langham said the growth in the market was driven by a trend away from overdraft finance towards debtor finance, also known as factoring and invoice discounting.
Mr Dutton and Perth investor Gary Pearce will join the Benchmark board, which also includes Grange Consulting chairman Ian MacLiver and company director Dennis Banks.
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