“Flexibility and quick decision making is essential in business, particularly at a time of rapid growth. Our interaction with InvoiceFair gave us a solution that adapts as our business expands into the future.”

John O’Connor, CEO & Co-Founder, Kollect
Overview:

Kollect, a hugely innovative subscription based on-demand refuse collection company, has steadily grown their business in the South East of Ireland over 36 months.

They are now in a phase of transformational growth, expanding their service to multiple cities across Ireland.

The core challenge for our client was obtaining fast and flexible working capital finance. Traditional funding options just did not work for them.

The Challenge:

Kollect needed access to working capital to drive their business growth. However, the only “asset” the company had was its regular customers.

How could the company leverage on this asset to fund their business growth when this “asset” is not recognised by “traditional funders”?

The Solution:

The InvoiceFair marketplace enabled Kollect to leverage their future subscription income to release growth capital for their business. This was done by using our Future Recurring Revenue solution.

Up to 70% of the value of 3 months future subscriptions is advanced to fund business expansion on a recurring basis. As each month settles, a new month is added allowing Kollect immediate leverage on the new “asset”.

Kollect have now successfully scaled their business nationally and have gained thousands of new customers.

Key to the Solution

  • InvoiceFair confirmed the financial strength, business model and subscription collection process of Kollect through discussion with their management team and a direct view of financials.
  • Analysis of income streams, future projections and peak working capital funding requirements.
  • Laying out the trade to the Funders to assess the transactions risk return.
  • Competitive Pricing Offering.
  • Trades are uploaded, reviewed and agreed. Funds paid to Kollect same day.
Features of the Solution:
  • Innovative and progressive solution.
  • No hidden costs – flexible ‘Trade as you go’ model, costs are simple and transparent.
  • As Kollect builds a track record on the platform, investor demand increases leading to a lower cost of finance.
Why only Future Receivables Trading could have enabled this deal?:

The fact that Kollect could access a Pool of Funders, not just one finance provider, delivered significant benefits to their business, specifically:

  • They could leverage their subscription income to release growth capital.
  • Their working capital funding grows directly in line with their business.
  • Gained assess to a diversified investor risk appetite.
  • This model recognises the only “asset” available to a subscription income business.
:

Trading their Recurring Revenue is a powerful enabler for growth. Armed with this knowledge, Kollect has the confidence to grow their business in Ireland.

This source of funding and the flexibility it has can be integrated into any business development projections and ultimately drive the bottom line.

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