QuickFee (ASX:QFE) share price leaps 8% on BNPL deal

Customers wanting their lawn mowed will be able to make the payments in monthly instalments.

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The QuickFee Ltd (ASX: QFE) share price is charging higher in early afternoon trade, up 8%.

Below we take a look at what’s driving investor interest in the ASX buy now, pay later (BNPL) share.

What new deal looks to be lifting the QuickFee share price?

The QuickFee share price is leaping higher after the company reported that it has acquired the rights to the Jim’s Pay Plan franchise. That franchise provides payment plans to some 4,400 Jim’s Group franchisees in more than 50 divisions and their clients across Australia.

According to the release, the contract, for which QuickFee said “there is no material consideration payable” will enable customers of Jim’s franchisees to opt to pay in 4, 6, 9, or 12-month instalments.

The new BNPL product will be called Jim’s Pay Plan.

Commenting on the new partnership, QuickFee’s CEO Eric Lookhoff said:

For Jim’s franchisees, we tailored our BNPL platform to best suit franchise operators with diverse service-based income streams. Powering Jim’s Pay Plan with QuickFee supports business growth for franchisees by providing an easy to use, fast, and secure payment offering, while improving franchisee cash flow.

The company noted that lending volumes and revenues are not guaranteed and the future significance of the contract to QuickFee is uncertain at this time.

The franchise agreement operates for 20 years with an option to renew.

What else was announced today?

In a separate announcement that could be lifting the QuickFee share price today, the company reported a new partnership with private markets investment firm, Northleaf Capital Partners.

That partnership sees QuickFee secure a new US$70 million asset-backed receivables financing facility, which the company says will fund its growth plans in Australia and the United States.

Commenting on the new funding facility, Lookhoff said, “The additional funding provides QuickFee increased lending capacity as the company continues to expand in key professional services markets, and accelerates growth of its buy now, pay later solution in the broader services sector.”

QuickFee share price snapshot

Despite today’s lift, the QuickFee share price remains down 50% in 2021. That compares to a year-to-date gain of 13% posted by the All Ordinaries Index (ASX: XAO).

Over the past month, QuickFee shares are up 21%.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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