Butn Limited (ASX:BTN) is a business-to-business funder that finances individual SME transactions, and its FY26 result shows record originations alongside a statutory loss and a debt-heavy funding structure. It is also adding a retail private Credit fund and selling a non-core business.

What the company does

Butn describes itself as an Australian funder that eases SME working-capital constraints by financing transactions on the credit of the end debtor, and says it has funded more than A$2.5 billion to Australian businesses.

FY26 result

In an ASX announcement of 27 August 2026 covering the year to 30 June 2026, Butn reported Revenue up 5% to A$15.3 million and record originations of A$528 million, up 7%. Platform originations grew 45% and made up 48% of originations. The non-recoverable write-off rate was 0.7% of originations.

Profitability was mixed. Normalised EBITDA was about A$6.5 million, but the statutory loss after tax was A$3.8 million. The company attributed the gap mainly to a A$3.3 million specific bad Debt write-off and about A$0.4 million of one-off legal and advisory costs. The adjustments are management's presentation.

Cash, debt and funding

Closing cash was about A$13.2 million, net operating cash outflow was about A$1.7 million and net Assets were about A$11.5 million. The announcement did not break down how much cash is restricted to funding vehicles rather than available for corporate use.

Funding is largely debt. A A$100 million senior Facility from Northleaf Capital Partners was about A$77 million drawn at 30 June 2026, and the corporate facility with Mighty Partners has been amended to a phased repayment schedule. Reliance on lenders is a core risk for a receivables funder.

Equity has also been raised: Tranche two of a June 2025 Placement brought in about A$3 million, per the half-year announcement of 23 February 2026. The announcement gave no Loan book figure or going-concern comment.

Recent developments

On 30 June 2026 Butn completed the sale of its Smash Repair Factoring (Panel) Business to Working Capital Finance Pty Ltd for up to A$4.1 million. A$2.1 million was cash at or before completion, with about A$2.0 million deferred and subject to adjustment. The business contributed under 15% of FY25 gross revenue. Butn will also provide the buyer a secured receivables facility priced at three-month BBSW plus 8.5% a year. Management expects roughly A$2 million of cost-base savings.

In June 2026 Butn launched the Moneybox Retail Credit Fund, managed by a wholly owned subsidiary, targeting the RBA cash rate plus 3.00% a year, which is a target and not guaranteed. A February plan for APAC crypto-backed lending was not verified as launched.

Outlook and risks

As company guidance, management expects continued origination and revenue growth in FY27 and said a Supply Chain Finance programme with a global bank is on track for a rollout in the second quarter of FY27. It is also assessing M&A and working to strengthen its underlying cash position.

Risks include credit losses, dependence on wholesale funding, execution on new products such as the retail fund, and integration risk if acquisitions proceed.

The next dated event is the Annual General Meeting on Monday 30 November 2026 at 2:00pm AEST. A September-quarter Appendix 4C is due by the end of October.