Butn

Australian financing solutions provider Butn, a spin-off from the transactional lending firm Australian Factoring Company, primarily caters to SMEs. Its offerings include a B2B BNPL product (Butn Pay, which offers a credit limit of AUD 75,000), invoice financing, advances for commission income, and business loans up to AUD 600,000 (approximately USD 436,000). In FY 2021, Butn facilitated AUD 207 million (approximately USD 157 million) in transactions reflecting YoY growth of 25%. Butn reported revenue of AUD 4.5 million (approximately USD 3.4 million) for FY2021, and a net loss of AUD 5.3 million (approximately USD 3.9 million).

The company generates revenue through a one-off establishment fee of AUD 199 (approximately USD 145) and a fixed commission fee (typically 3–6%). It also charges fees on late payments of 0.1% per day on the outstanding balance of the overdue invoice.

Funding and financials

In July 2021, Butn was listed on the Australian Securities Exchange raising AUD 20 million (approximately USD 14.5 million) in the process. This followed its pre-IPO round of AUD 12.5 million (approximately USD 9.1 million) in February 2021. The fresh funds were allocated for market expansion, growing its merchant network, and product development.

For FY2023, Butn recorded AUD 441 million (~USD 284 million) in loan originations, reflecting a 61% YoY growth compared to AUD 274 million (~USD 176 million) recorded in FY2022. Total revenue grew 120% YoY to AUD 11.9 million (~USD 7.7 million) in FY2023, compared to AUD 5.4 million (~USD 3.5 million) recorded in FY2022. However, it recorded a loss after tax of AUD 6.5 million (~USD 4.2 million) for FY2023, compared to a loss after tax of AUD 8.7 million (~USD 5.6 million) in FY2022.