Big Data Supplier

Our client provides data analytics and strategy consultancy services to large
companies providing insights into company performance, customer behaviour and
the wider market.

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The Situation:

Over the recent past, the company developed a sophisticated analytics tool
gaining significant traction in the market. The product pivoted the business model from consulting to a strong recurring revenue however each contract requires upfront development costs in order to customise the tool and manage implementation.

The Challenge:

Our Client required working capital to fund a number of recently awarded projects. The Management Team wanted to manage the new product area in isolation from the existing consulting business. Traditional finance solutions were not appropriate as security could not be given over tangible fixed assets.

Specifically, the company wanted to:

  • Release sufficient working capital to fund upfront development where traditional security could not be provided.
  • Release cashflow from contracted future recurring revenue.
The Solution:

The company used Future Recurring Revenue Finance to trade 70% of the next
quarter future recurring income immediately. As each quarter settled, a new quarter is traded allowing the company to access funding directly aligned to their working capital requirements.

Key to the Solution

  • Analysis of the contract terms, related devlopment costs, delivery schedules and overall working capital funding requirements.
  • Understanding the capability of the Management Team and their expertise and ability to perform.
  • Funding provided within 24 hours of the company receiving their PO.
  • Competitive pricing with a customised solution.
  • Flexibility to access additional funding as demand increases.
Why only Future Receivables Trading could have enabled this deal:

The fact that our client could access a pool of funders, not just one finance provider, delivered significant benefits:

  • They could leverage their Future Recurring Revenue to release capital to fulfil the current contract.
  • They had both access to funders who have an appetite for purchasing this type of Receivable and understand the sector risks & complexities.
  • Funding is spread across a deep pool of funders as opposed to reliance on the single Balance Sheet of a traditional funder. This eliminates the restriction around funding limits and Debtor Concentration.

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