The future of an Australian buy now, pay later provider is under a major cloud.
BizPay went into administration on November 23 and was placed in the hands of BRI Ferrier’s Jonathon Sherwood Keenan and Peter Paul Krejci.
A notice issued by the Australian Securities and Investments Commission flagged that a virtual meeting of creditors would be held on Tuesday.
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There was another development this week when it emerged the company was being put into receivership.
The purpose of this process, as described by ASIC, is to protect, collect and sell company assets to repay debts owed to secured creditors.
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Simon Cathro and David Mutton of Cathro & Partners have been appointed receivers.
“While a restructure of the business is explored, no new loans are being issued to clients,” BizPay said in a note on its website.
Founded in 2019, BizPay is an Afterpay-style BNPL service used by small to medium-sized businesses to pay providers including lawyers and accountants.
It charges buyers a percentage of the invoice based on whether they repay loans in fortnightly or monthly instalments
Cashflow shortfalls are reportedly to blame for the company’s current situation following an internal restructuring and failed bids to secure extra capital.
The company said it had about 1000 customers in early 2022 and had expected that to grow to 12,000 before the end of the year.
However, cracks appeared shortly after when BizPay, which had once hoped to list at a $400 million valuation, trimmed almost a third of its workforce and co-founder David Price resigned two months later.
BizPay’s difficulties came to light amid the downfall of Openpay, which has been put into voluntary liquidation and will be wound up.