Way 2 Vat Ltd Extends Debt Facility to $4.876M With 2029 Maturity
Way2VAT secures larger, longer-term debt facility with Bank Hapoalim
Way2VAT (ASX: W2V) has restructured its debt facilities with its long-term banker, Bank Hapoalim, increasing the total available facility and extending the maturity term. The move lifts the company’s total available facility to $4.876 million, up from $3.926 million as at 31 March 2026.
Central to the restructure is a new secured loan of approximately $2.297 million, maturing 30 June 2029. According to the company, the enhanced facility is designed to extend operational runway and enable further client acquisition as Way2VAT approaches breakeven.
Bank Hapoalim, described as the company’s long-term banker, entered into the new arrangement in recognition of Way2VAT’s revenue growth and what management characterised as a “large, high quality accounts receivable balance.”
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Inside the new facility terms
The restructure converts shorter-dated debt into a structured, longer-term loan while clearing two bridging facilities. The key terms are as follows:
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New secured loan: approximately $2.297 million
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Maturity: 30 June 2029 (3-year term)
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Repayable in 36 equal monthly instalments
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Interest: Israeli Prime Rate + 5.00% (currently equating to 10.25%)
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Two short-term bridging loans of $692,000 and $688,000 repaid in April and June 2026
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Funds drawn applied to repay existing short-term debt and improve liquidity
The new secured loan was implemented on similar interest rates and repayment terms to the existing loans within the facility, with the added benefit of an extended maturity. The following table compares the facility before and after the restructure.
| Metric | At 31 March 2026 | At 30 June 2026 | Change |
|---|---|---|---|
| Total available facility | $3.926M | $4.876M | +$0.95M |
| Longest maturity term | ≤12 months | 30 June 2029 (3 years) | Extended |
| Short-term bridging loans | $692K + $688K outstanding | Repaid | Cleared |
The longer maturity removes near-term refinancing pressure, converting short-term debt into a structured 3-year facility.
Why an extended debt maturity matters for investors
The concept of a debt facility’s “maturity term” is central to understanding why this restructure matters. The maturity term is simply the date by which a loan must be fully repaid. Extending it from under 12 months to three years reduces what is known as refinancing risk, meaning the company is no longer under pressure to find new funding or repay debt in the short term.
A key factor cited by management is Way2VAT’s accounts receivable balance. For a fintech business, accounts receivable represents money owed to the company by its clients for services already provided. A large, high-quality receivables balance gives a lender greater confidence to extend credit, as it indicates reliable incoming cash flows.
Way2VAT FY25 revenue growth of 46% to $6.6 million, accompanied by a $6.9 million accounts receivable balance, formed the financial backdrop that Bank Hapoalim cited when agreeing to extend and increase the facility.
Equally important is the notion of operational runway. This refers to how long a company can continue funding its operations before requiring additional capital. For a business approaching breakeven, where revenue is moving closer to covering costs, a longer runway provides the stability to keep investing in growth without the distraction of imminent repayments.
In practical terms, the restructure buys Way2VAT time and balance sheet stability to continue acquiring clients without short-term repayment pressure.
“Way2VAT is pleased to announce that in recognition of the company’s growth in revenues and it’s large, high quality accounts receivable balance, the company has entered into a new secured loan with its lender, Bank Hapoalim for an amount of $2.297 million with a maturity of 30 June 2029. The company is pleased to be able to extend the maturity of this loan to 3 years from previous outstanding loans with maturities of no longer than 12 months.”
— Amos Simantov, Founder and CEO, Way2VAT
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What this means for Way2VAT’s growth path
The refinancing is positioned to support Way2VAT’s operational and strategic growth initiatives. With short-term bridging loans cleared and a structured three-year facility in place, the company has greater capacity to fund further client acquisition as it approaches breakeven.
Way2VAT is a global fintech in automated VAT/GST claim and return solutions, operating across more than 40 countries and in over 20 languages. The company owns and operates a patented artificial intelligence platform that powers an end-to-end VAT reclaim solution. Established in 2016, Way2VAT is headquartered in Tel Aviv with offices in the United Kingdom, Spain and Romania. It employs more than 80 staff, and 526 global enterprise companies use its platform.
The strategic takeaways from the restructure can be summarised as follows:
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Increased total facility to $4.876 million strengthens liquidity.
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Extended 3-year maturity removes near-term refinancing overhang.
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Cleared short-term bridging loans simplify the balance sheet.
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Capacity to fund further client acquisition as the company approaches breakeven.
The continued backing of Bank Hapoalim, the company’s long-term banker, represents a signal of confidence in Way2VAT’s revenue growth and the quality of its receivables as it works towards breakeven.
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