Here's why the EarlyPay (ASX:EPY) share price is rising today

The EarlyPay (ASX:EPY) share price is on the rise today, up 1.15% in early afternoon trade. We take a look at what's moving the shares.

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published March 17, 2021 1:12 pm AEDT

EarlyPay Ltd (ASX: EPY) shares are on the rise today after the company provided a business growth and facilities update. At the time of writing, the EarlyPay share price is trading 1.15% higher at 44 cents after earlier posting gains of 5%.

The company provides tailored financing solutions to both small and large businesses across Australia. Let's take a look at what it reported.

Investor scratching his head. — Image source; Getty Images

What did EarlyPay report?

EarlyPay shares are moving higher today after the company reported the increase in its new business volumes were continuing during the first two months of the new financial quarter (Q3 FY21). EarlyPay had earlier reported the increase in new business volumes in its half-year financial report (H1 FY21) for the year ending 31 December. That release saw the share price surge 10% on the day.

The company reported that the third quarter tends to be a quieter business period due to holiday disruptions, but this was not the case this year. It reported being on track to increase the number of its Invoice Financing clients by 10% during Q3.

Additionally, Total Transaction Volume increased 10% year on year, which was before COVID-19 impacted the market.

The company credits its online strategy for the growth, reporting more than 90% of all new invoice financing clients used its online platform during Q3 so far, compared to 56% in Q2.

EarlyPay also provided an update on the facility it holds with Greensill, which is now under administration. It said this debt represents "less than 10% of Earlypay's total loan portfolio and will be transitioned to an existing bank warehouse facility which has ample headroom".

The company reaffirmed its full 2021 financial year guidance of earnings before interest, taxes, depreciation and amortisation (EBITDA) of $21 million and net profit after tax and amortisation (NPATA) of $8.5 million. It intends to pay a full-year dividend in the range of 1.3 cents per share, fully franked.

EarlyPay share price snapshot

Over the past full year, EarlyPay shares are down by 12%. That compares to a gain of 32% on the All Ordinaries Index (ASX: XAO).

Year to date, the EarlyPay share price is up 16%.

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