New Cadmus transaction

Eftpos company Cadmus Technology has expanded its finance business with its second acquisition in two weeks.

Product Rentals, a wholly owned subsidiary of Cadmus, will buy Dorchester Finance's eftpos finance book for about $630,000.

The move increases Product Rentals' finance book by about $1 million, on top of the more than $10 million boost it got from acquiring the eftpos books of Finance Portfolio and Nationwide Finance - both part of the Hanover Group.

Cadmus managing director Ian Bailey said Product Rentals' total finance book now stood at tens of millions.

"It's all about critical mass," Bailey said. "It provides us with the ability to get a lower cost of funds and, therefore, become even more competitive."

Product Rentals operated as a stand-alone business and also financed equipment from rival companies as well as from Cadmus.

"At the end of the day, it's about supplying customers what they want."

He said the need for ongoing technical updates meant most businesses preferred to rent rather than own their eftpos equipment. A terminal typically cost $13 to $14 a week to rent, including updates and support.

Dorchester Pacific interim chief executive Mark Simpson said: "The sale of this small part of the equipment finance book allows us to focus our lending on other forms of finance."