Superior Quality Yields

Apxium’s innovative technology and unique credit structuring delivers higher risk adjusted returns than would otherwise be the norm for such creditworthy business borrowers. For its invoice financing product, higher risk-adjusted returns are achieved by Apxium’s ability to reduce debtor days by 50% with its AR automation technology, thereby lending to an optimised (de-risked) debtor book. For its Tax Pay product, Apxium is in a unique situation where creditworthy businesses are willing to borrow at higher costs than what their credit ratings would suggest their credit default spreads should be, creating an inelastic demand curve for Tax Pay.

This unique situation is driven by recent legislative changes imposed by tax/revenue authorities. Part of these changes no longer allow businesses to enter into low/no cost payment plans with the tax/revenue authorities, with legal enforcement proceedings imposed if tax obligations are not settled by their due dates. This has created an extremely high degree of urgency for businesses to seek immediate solutions that are fair and flexible, albeit willing to pay higher costs for. Through Apxium’s deep relationships with these business’ most trusted advisors (their accountants), Tax Pay is seen as a trusted solution to their problem.

Risk-adjusted returns are further optimised by Apxium’s lending workflow automation technology, which reduces the cost-to-serve, ultimately sharing these superior economies with Lenders through more attracting APY.

Apxium’s distribution moat - through its deep relationships with high profile accounting firms - along with its unique technology further adds to Lenders’ ability to achieve higher quality yields. This is summarised as follows:

• Lower Customer Acquisition Cost, thereby sharing such savings/economies with Lenders though more attracting APY.

• Automation software that lowers customer onboarding costs, and the cost-to-serve economics, also benefiting Lenders through the APYs offered.

• Proprietary Deal Flow, ensuring access to high quality, profitable clients from a highly trusted source to access the most creditworthy deals.

• Inelastic Demand, creating a unique situation where many low-risk businesses will pay funding costs than what their quality credit profiles would suggest.

Hence, Apxium is able to deliver a unique mix of economies of scale to benefit Lenders’ APY - along with charging a higher interest rate to businesses than what their credit risk profiles would suggest they should be paying as a credit default spread. This is unlike any competing RWA lending platforms, as they do not possess the technology and commercial relationships to achieve such unique risk-reward outcomes.