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Peak Positioning Technologies (CSE:PKK) starts financing program early

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CSE:PKK
12 November 2020 15:35 (EDT)

Peak Positioning Technologies’ (PKK) Cubeler Lending Hub has facilitated the inaugural transactions of the company’s BDC agreement.

In October, the company signed an exclusive services agreement with electronics distributor Beijing Dianjing Company (BDC). Under the agreement, Peak would provide financial services to BDC and its 60,000 online retail customers.

The company’s commercial lending platform, Cubeler Lending Hub, would analyse retailer sales to determine if they qualified to have their purchase orders financed. 

The first transactions which were approved for funding through the program were purchase orders for iPhones. The orders, which came from four JD.com affiliated stores, were worth a combined 48 million yuan (roughly C$9.5 million).

The financing program was originally expected to kick off in early December, but unexpectedly had to start early. Due to high demand from the affiliated stores, Peak and BDC decided to allow the first transactions to be processed, while the program undergoes minor adjustments.

Peak Group China’s CEO, Liang Qiu, said that the company expected strong demand from online retailers for Lending Hub’s services but did not expect to start the program almost a month ahead of schedule.

“Retailers continuously buy and sell inventory and thus have an ongoing need for credit, a need that wasn’t properly addressed until today,” he said.

“We created a program that uses AI and analytics to help retailers buy more products from wholesalers, and are working with some of the country’s largest wholesale distributors to expand it nationwide,” he added.

Peak Positioning Technologies is up 2.42 per cent and is trading for $1.27 per share, as of 2:09pm EST.

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