BOQ boosts debtor finance business with purchase
(13 January 2006 – Australia) Bank of Queensland has purchased the Debtor Finance division of Orix Australia for A$12 million.
The business is currently managing A$78 million in net tangible assets.
BOQ managing director David Liddy said the acquisition strengthened the bank’s position in the competitive debtor finance market and extended its national reach.
"Importantly, like our very successful acquisition of the equipment finance business two years ago, it opens a new customer market up to the BOQ service experience," he said.
BOQ said the new debtor finance division complemented its fast growing equipment finance, debtor finance and business banking growth across the country.
"With this acquisition BOQ gains three percent of the national debtor finance market, with the largest percentage of this business in our new markets of New South Wales and Victoria," Liddy said.
BOQ group executive Business Banking Ross Norton said the key to the success of the acquisition would be the integration of the bank with the Orix team, which the bank intends to retain.
"Our intention is to significantly grow the business through the excellent team Orix has built, along with our own team of debtor finance specialists," he said.
BOQ said the debtor finance market had been growing at 30 percent compound over the past few years as SMEs used their business assets rather than the family home to secure funding lines.
"Essentially, this allows businesses to turn their outstanding accounts receivables into cash. This is nothing new, but has gained increased popularity and market acceptance in the last few years," Norton said.
BOQ managing director David Liddy said the acquisition strengthened the bank’s position in the competitive debtor finance market and extended its national reach.
"Importantly, like our very successful acquisition of the equipment finance business two years ago, it opens a new customer market up to the BOQ service experience," he said.
BOQ said the new debtor finance division complemented its fast growing equipment finance, debtor finance and business banking growth across the country.
"With this acquisition BOQ gains three percent of the national debtor finance market, with the largest percentage of this business in our new markets of New South Wales and Victoria," Liddy said.
BOQ group executive Business Banking Ross Norton said the key to the success of the acquisition would be the integration of the bank with the Orix team, which the bank intends to retain.
"Our intention is to significantly grow the business through the excellent team Orix has built, along with our own team of debtor finance specialists," he said.
BOQ said the debtor finance market had been growing at 30 percent compound over the past few years as SMEs used their business assets rather than the family home to secure funding lines.
"Essentially, this allows businesses to turn their outstanding accounts receivables into cash. This is nothing new, but has gained increased popularity and market acceptance in the last few years," Norton said.
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