Way2VAT has restructured its debt with Bank Hapoalim, securing a larger $4.876 million facility and extending loan terms to three years to support growth and approach breakeven.
- New $2.297 million secured loan with 3-year maturity
- Total debt facility increased from $3.926 million to $4.876 million
- Repayment of short-term bridging loans improves liquidity
- Interest rate set at Israeli Prime Rate plus 5%
- Facility extension supports operational runway and client acquisition
Way2VAT Extends Debt Maturity Amid Growth Phase
Way2VAT Ltd (ASX:W2V) has secured a significant refinancing milestone, expanding its debt facility to AUD 4.876 million and extending the maturity of its loans to June 2029. This move replaces previous short-term bridging loans and stretches the company’s operational runway as it nears breakeven.
The centerpiece of the restructuring is a new secured loan of approximately AUD 2.297 million, repayable over 36 equal monthly instalments. The loan carries an interest rate pegged at the Israeli Prime Rate plus 5%, currently equating to 10.25%. This longer-term financing replaces two short-term bridging loans totalling around AUD 1.38 million, which were repaid in April and June 2026.
Refinancing Bolsters Liquidity and Growth Prospects
By increasing the total debt facility from AUD 3.926 million to AUD 4.876 million, Way2VAT is effectively enhancing its liquidity position. The company’s founder and CEO, Amos Simantov, highlighted that the refinancing was granted in recognition of Way2VAT’s revenue growth and strong accounts receivable balance. The extended maturity from under 12 months to three years provides greater financial flexibility to pursue client acquisition and strategic initiatives.
This development follows a period of rapid revenue expansion, with Way2VAT nearly doubling its quarterly revenue to over AUD 2 million earlier in 2026, driven by acquisitions and an expanding client base. The refinancing complements recent capital raises aimed at reducing short-term debt and funding growth, positioning the company to capitalise on its patented AI-powered VAT reclaim platform used by over 500 enterprise clients globally.
Interest Rate and Repayment Terms Reflect Market Conditions
The new loan’s interest rate, tied to the Israeli Prime Rate plus a 5% margin, introduces variability in future interest expenses depending on rate movements. However, the fixed monthly repayment schedule over three years offers predictability in cash flow management compared to prior short-term facilities. This structured repayment aligns with Way2VAT’s strategy to extend its financial runway while maintaining operational momentum.
With headquarters in Tel Aviv and offices across Europe, Way2VAT continues to leverage its patented artificial intelligence technology to automate VAT/GST claims in over 40 countries and 20 languages. The company’s ability to secure longer-term debt financing signals confidence from its banking partner in its growth trajectory and financial stability.
Bottom Line?
Way2VAT’s extended debt facility and longer loan maturity provide breathing room to scale operations and approach breakeven, though future interest costs remain sensitive to Israeli rate fluctuations.
Questions in the middle?
- How will fluctuations in the Israeli Prime Rate impact Way2VAT’s interest expenses over the next three years?
- Can Way2VAT sustain its revenue growth to comfortably service the increased debt facility?
- What milestones or financial metrics will indicate the company is moving beyond the breakeven point?