Another buy now pay later company hits the wall

BizPay, which provides buy now pay later services in the business-to-business space, mainly as an invoice payment option for small to medium sized businesses, went into administration on November 23.

Jonathon Keenan and Peter Krejci of BRI Ferrier were appointed administrators, and Mr Keenan said at that time that they were looking to restructure the business, or sell it, or its loan book.

“We’re looking to sell or restructure the business,’’ Mr Keenan told The Herald-Sun.

“A number of interested parties have already expressed interest.

“We’ll be looking to explore those options fairly quickly.’’

However, today Mr Keenan told news.com.au that on November 29 a secured creditor of BizPay made the decision to put the business into receivership, appointing Simon Cathro and David Mutton of Cathro & Partners as receivers.

Mr Keenan said that while he would continue to work on restructuring options for the business, it would now be up to the receivers to pursue the sale of BizPay.

A statement on the BizPay website reads: “While a restructure of the business is explored, no new loans are being issued to clients.”

The company will hold its first creditors’ meeting on December 5, according to documents filed with the Australian Securities and Investments Commission (ASIC).

The demise of BizPay follows the collapse of Openpay into liquidation, as reported exclusively by news.com.au.

In March 2022, BizPay CEO and co-founder David Price said that the company was looking at a possible stock market listing in September that year, with hopes of a $400 million valuation.

But by May 2022, BizPay had sacked 30 per cent of its workforce and Mr Price resigned as CEO in July 2022.

Bizpay’s most recent financial report, for the year ended December 31, 2022, shows it lost $15.3 million in 2022 and $21.7 million in 2021.

Investors in the businesses reportedly include the investment arm of Macquarie Bank.