IT equipment financing provider, ThinkSmart (ASX:TSM), expects the value of a customer contract to grow 25 per cent after implementing a new securitisation platform.
The company on Friday said it had completed development of the platform, which is expected to be fully implemented by July.
The platform will use a $100 million facility provided by Westpac (ASX:WBC), through a deal announced in February.
The new model will result in income generation over the life of a lease, instead of just upfront, ThinkSmart CEO Ned Montarello said.
“The incremental profits arising from this lower cost, higher yielding model will become evident in 2012, with the full benefits of an approximate 25 per cent increase in over life revenue being realised from 2013 and 2014,” he said.
Around $36 million in leases will be assigned from an existing facility with Bendigo and Adelaide Bank to the Westpac facility, in a move calculated to help offset any short-term impact from the move away from an upfront revenue model.
ThinkSmart also recently negotiated a facility with a UK bank to help fund its financing deals in the country. The company and retail chain partner Dixons launched a PC rental service in the country late last year.
TSM shares grew 3.76 per cent in Friday's trading to $0.690.
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