Perennial’s focus is low-risk invoices, where the customers are typically large blue-chip companies, insurance firms or government bodies. These invoices are usually pre-approved for payment and paid in under 30 days, with very low rates of default. In the rare case of default, Perennial has security over the customer’ assets.
The company will use the funds raised by this bond to expand its operations across the whole of Australia. The bond is insured by Equinox Global and secured with a floating charge over cash raised and invoices receivable.