The business plan demonstrated they couldn’t scale without cash – even on the back of strong sales. This was because the implementation costs were high. Generally, the payment would be made at the end of the implementation process and potentially subject to lengthy payment terms, meaning the business would run into cash flow issues before generating required levels of revenue.
Because of the sales success they already had, we helped them consider factoring on the back of deals that had been signed – but this appeared to be an expensive way to grow a business, so was not a preferred route.
Instead, we were able to provide advice on framing a case to investors and offered support throughout the process. We accompanied them to key investor meetings and guided them on what investors would need to see – for example, profit and loss, ROI and cash flow forecasts and creating the required information pack.
iRex had several key investment opportunities, including some overseas options. Again for a business their size, they were getting access to an impressive number of senior personnel in large multi-national companies. We also were able to promote them to our well-developed channels and networks, looking at options and opening more doors.