IT financing company ThinkSmart (ASX:TSM) has secured a five-year agreement with retailer buying group the Leading Edge.
The point of sale financing agreement is expected to contribute between 5% to 10% of ThinkSmart's total Australian business volumes on a full-year basis by 2H11.
The Leading Edge is a retail buying group with over 1,350 retail members operating under a franchise agreement. Business categories include telecom, computers, electronics and photography.
ThinkSmart executive chairman Ned Montarello said the company had been chosen for the deal due to its system automation capabilities and its online presence.
“This agreement highlights the opportunities now available across all retailing formats in our chosen segments following the announcement of our new securitisation funding platform,” he said.
ThinkSmart in February announced http://www.cfoworld.com.au/news/533900/thinksmart-secures-160m-in-credit-facilities/ it had negotiated around $160 million in credit facilities, including the $100 million securitisation facility with a “major” Australian bank.
The company earlier this month revealed it had extended its retail financing deal with JB Hi-Fi until at least mid-2014.
TSM shares grew 2.33% in Thursday's trading to $0.660.