Australian receivables manager Collection House Ltd. has executed a new forward flow agreement with a major Australian bank. The agreement, which covers the acquisition of credit card debts, runs for 12 months and has an estimated face value of AUD $50 million (U.S. $47.4 million).
"We have enjoyed an especially strong relationship with this banking partner and are delighted to be maintaining our association into the future," Managing Director and CEO Tony Aveling said in a news release.
The company expects its debt purchases for the 2007-08 financial year to exceed AUD
$65 million (U.S. $61.6 million) compared with AUD $29 million (U.S. $27.5 million)
during fiscal 2006-07.
The new contract is likely to have little impact on the current year with purchases largely to occur in fiscal 2008-09, the company said.