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HomeIndustry NewsWestpac to sell Vendor Finance business to Angle Finance
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Westpac to sell Vendor Finance business to Angle Finance

Westpac Group today announced that it has entered into an agreement for the sale of its Vendor Finance business to Angle Finance, a portfolio company of Cerberus Capital Management, L.P.

Vendor Finance supports third parties to fund small ticket equipment finance loans to around 42,000 Australian businesses. The transaction is set to lead to the transfer of approximately $500 million of customer loans.

Given the relatively modest size of the portfolio, the sale is expected to have a negligible impact on Westpac’s balance sheet and capital ratios. There is expected to be a small accounting loss on sale due to the transaction being structured with an initial payment on completion and deferred consideration payable over the two-year period following completion.

Completion of the transaction is poised to occur at the end of April 2021.

Vendor Finance currently operates out of the Westpac subsidiary Capital Finance Australia Limited (CFAL). Westpac will continue to retain and manage the remaining CFAL Equipment Finance business in its Business Division.

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