Splitit Announces Interest Rate Cut Via Goldman Sachs Facility Amendment
NEW YORK, August 2, 2022 /PRNewswire/ — Separate it (ASX: SPT) (OTCQX: SPTTY) announced that it has signed an amendment to its $150 million receivables financing facility with Goldman Sachs Bank UNITED STATES. The amendment reduces the interest payable by Splitit to a range of 15% to 20%, assuming certain volumes are reached. Moreover, the new business conditions allow Splitit to be more competitive in the global market.
“Last week, the Federal Open Market Committee raised the federal funds rate by 75 basis points. This week, we are very pleased that our funding partner has reduced our install rates to support our global expansion,” notes the financial director of Splitit. Ben Malone. “These valuable savings will further reduce our expenses, in addition to the operating expense reductions initiated throughout the first half of 2022.”
“Splitit continues to remain highly differentiated from traditional BNPL providers. We do not share the industry challenges of increasing consumer defaults and reported in our Q2 FY22 quarterly report a 9x improvement in net trading margin year-over-year Our ability to lower interest costs today is a testament to our unique low-risk model As we scale, we are confident in our path to profitability,” adds Nandan ShethCEO of Splitit.
Further details regarding the amendment can be found in the recent announcement from the ASX.
Separate it is a global payment solutions provider that allows shoppers to use the credit they’ve earned by splitting their purchases into interest-free monthly installments using their existing credit cards.
Splitit powers the next generation of Buy Now, Pay Later (BNPL) through its payout platform as a merchant-branded service. Splitit solves the challenges enterprises face with legacy BNPL while unlocking BNPL at the point of sale for card networks, issuers, and acquirers, all through a single network API.
Splitit’s Installments-as-a-Service platform alleviates legacy BNPL issues like declining funnel, checkout clutter and lack of customer experience control of the merchant, empowering merchants to nurture and retain customers, drive conversion, and increase average order value. Splitit’s white label BNPL is the easiest payout option for merchants to adopt, integrate and operate while providing a clean and streamlined experience integrated into their existing purchase flow. With no apps, referrals, or new loans, Splitit is one of the most responsible installment payment options for customers.
Based at New YorkSplitit has an R&D center in Israel and offices at London and Australia. Splitit is listed on the Australian Securities Exchange (ASX) under the symbol SPT and trades on the US OTCQX under the symbols SPTTY (ADR) and STTTF (common stock).
SOURCE Splitit UNITED STATESInc.