Microbiome health company Biome Australia (ASX:BIO) has announced that its wholly owned subsidiary, Biome Australia Trading, has entered into a $5 million secured debt facility with National Australia Bank (NAB).
The company said the new facility would replace the existing debt facility with Tradeplus24 at a significantly improved interest rate.
Biome said it will use the new facility to optimise inventory management and support the growth of the business both locally and internationally as volumes continue to increase.
The company said the facility has two components. The first is a $3.5 million facility for invoice funding for its Australian accounts receivables. It said the 7.75 per cent interest rate is a significant improvement to its previous facility. It carries an application fee of $12,250 plus a monthly facility fee of $1,700. The second is a $1.5 million trade refinance facility.
Biome Australia’s chief financial officer, Douglas Loh, said, “I am delighted we have formed this new partnership with NAB Health, a division of one of Australia’s leading business banks. NAB’s specialty healthcare department has a deep understanding of the Australian health industry, and their backing is a significant validation of the Biome Australia business. As we continue to expand Biome internationally, we look forward to working closely with the NAB Health team to support our growth capital needs.”
