SkyCredit merges with Nimble Australia, boosting its consumer credit portfolio to $100m

Founded in 2019 by Paul Walshe, SkyCredit operates a string of financial services operations including Fair Go Finance, One Card Credit and Fintech Services Australia.

Its acquisition of Gold Coast-based Nimble will run alongside its existing consumer credit business Fair Go Finance with each set to continue as standalone operations.

“The deal is a significant milestone and will expand SkyCredit’s presence in the consumer credit market,” says Walshe.

“This is important in terms of opening up funding sources that can help reduce our borrowing costs, which in turn will benefit our customers.

“The addition of Nimble to the group will get us to a scale that will enable SkyCredit to compete better in the market for customers, capital and staff. Once we are through the integration, we will be well positioned to leverage the groups capabilities and improve the offering to all customers.”

Nimble Australia was founded as a pay-day lender in 2005 by Greg Ellis and Sean Teahan, who had to mow lawns on the side to make ends meet in the early years of developing the business then known as Cash Doctors.

The business grew on the back of what was considered at the time to be an innovative lending platform that allowed borrowers to access loans quickly. In 2009, Nimble was said to be the first company in Australia to process paperless loan applications.

Last year, Nimble expanded with the acquisition of ZeeFi, a specialist in finance for the educational sector, in a deal that added ZeeFi’s $30 million loan book to Nimble’s existing $50 million portfolio.

SkyCredit’s buyout of Nimble Australia includes its loan book and brand in exchange for an undisclosed shareholding in SkyCredit. 

Nimble Money directors Graeme Wilson and Ben Edney have joined the SkyCredit board following the deal which was settled earlier this month.

SkyCredit says Nimble’s existing debt facilities with Alceon and Partners for Growth have been extended to facilitate the integration of the business into its operations.

Walshe, who ventured into the consumer credit market with Fair Go Finance in 2008, started growing the business via acquisition in 2018 when he merged with rival Capfin Money, formerly known as Spot Loans. The acquisition led to a restructure of his operations under the SkyCredit banner.

Walshe notes that Fair Go Finance and Nimble share a similar business profile that makes the merger “an obvious proposition”.

“However, over the last decade Fair Go Finance has evolved its credit offering and risk management capabilities to compete well in the near-prime segment of the market, where customers have credit scores of 400 to 600,” he says.

“The merger provides a path to continue this innovation and customer-led offering to people across Australia with a brand they trust.”

SkyCredit plans to operate Fair Go Finance and Nimble Australia as stand-alone brands with their own distinct offerings, which in part targets consumers with lower credit scores and ostensibly allows them to boost their credit scores via a successful loan experience.

Walshe says that SkyCredit Group’s capabilities in credit risk management have led to lower bad debts than can be typically expected at this end of the credit market.

“Our credit-risk capabilities are unique and targeted to a specific segment of the Australian consumer credit market, and as a result, we onboard customers more efficiently and have lower-than-average loss rates, which results in excellent customer experiences,” he says.

“We will bring this leadership to the Nimble brand and look forward to reinvigorating its innovative approach to consumer finance.”