NEW MEDIA INFORMATION TECHNOLOGIES LIMITED

Technology

Funds Raised

£30,000.00

Final AER

19.20%

Loan term

60 MONTHS

Auction Closed

2016-05-30

Micro Loan Opportunities
Buy Capital Seller's
Premium
Price Buyer's
Rate
BuyBack
£4.79 +13.50% £5.43 5.17%

About the Business

Company Name: NEW MEDIA INFORMATION TECHNOLOGIES LIMITED Company Number: 07663480
Business Type: Technology Years Trading: 3-5 years
Business Location: BURY ST. EDMUNDS

About the Risk

Risk rating

C

Default rate

13.30%

Bad debt rate

5.47%

About the Security

Security Offered:

2nd Charge Non Residential Property

Est. Equity: 0.00

1st Charge Residential Property

Est. Equity: 0.00

Risk Indicators Identified:

Important Files

Who are we?

The business designs, builds and supports software systems. It has been in business since 2012 and has grown by about 50% each year with an increasing proportion of its business under long-term contract. All committed costs are now covered by long term contracts.

The business invests heavily in research and development, which fuels growth and under-pins future profits.

The business employs 45 staff in a separate legal entity controlled by the same owner in Chennai India. Costs are approximately 25% of the equivalent UK cost.

Additionally, some staff are supplied under long term contract to UK customers at about 65% gross margin.

Read more

Loan Offers

What is the loan for?

The loan will be deployed against two clear objectives. It will fund two projects, reduce administration costs and reduce the cost of finance. It will allow the current high rate of R&D investment to continue.

The two projects are:-

1) A disaster recovery after devastating floods in Chennai that all but closed our offices for a month last November / December. With new arrangements in three other cities our ability to manage through any future event will be instantaneous and low-cost.

2) The integration of the Cyber Interactive Marketing business, which failed under its founder will increase both sales by £300k and profits by about £100k per year through better management, higher quality, and efficiencies of scale.

The reduced administration cost will occur by eliminating the high effort required to operate Trade Invoice Finance and to reconnect the business with tight credit control.

Why consider investing?

The business is a strong, well-managed and growing entity. The owners operate to a strong published ethical code. There is very considerable senior management experience and a history of always repaying lenders and financial service providers on time.

The reasons for needing to borrow are discretionary. Investment in R&D, commitment to care long term for disadvantaged team members. Investment in disaster recovery plans.

The client base includes several famous companies buying on long term commitments. The first client, IKEA home delivery is still a client and deepening its relationship.

Loan Security

This loan is to be secured by a Personal Guarantee provided by the company Director, Mr Meadows-Smith, and an additional Corporate Guarantee provided by the New Media Business Group.

Mr Meadows-Smith's net worth is estimated to be £410,000. This primarily comes from equity from his ownership of his residential property. His personal dwelling has an estimated value of £550,000 and £430,000 estimated equity.

DateAmountCapitalInterestReceived
03/07/2016£781.52£301.52£480.00
03/08/2016£781.52£306.35£475.17
03/09/2016£781.52£311.25£470.27
03/10/2016£781.52£316.23£465.29
03/11/2016£781.52£321.29£460.23
03/12/2016£781.52£326.43£455.09
03/01/2017£781.52£331.65£449.87
03/02/2017£781.52£336.96£444.56
03/03/2017£781.52£342.35£439.17
03/04/2017£781.52£347.83£433.69
03/05/2017£781.52£353.39£428.13
03/06/2017£781.52£359.05£422.47 (6 days late)
03/07/2017£781.52£364.79£416.73
03/08/2017£781.52£370.63£410.89
03/09/2017£781.52£376.56£404.96
03/10/2017£781.52£382.58£398.94
03/11/2017£781.52£388.70£392.82
03/12/2017£781.52£394.92£386.60
03/01/2018£781.52£401.24£380.28
03/02/2018£781.52£407.66£373.86
03/03/2018£781.52£414.18£367.34
03/04/2018£781.52£420.81£360.71
03/05/2018£781.52£427.54£353.98
03/06/2018£781.52£434.38£347.14 (8 days late)
03/07/2018£781.52£441.33£340.19 (20 days late)
03/08/2018£781.52£448.40£333.12 (14 days late)
03/09/2018£781.52£455.57£325.95
03/10/2018£781.52£462.86£318.66
03/11/2018£781.52£470.26£311.26 (10 days late)
03/12/2018£781.52£477.79£303.73
03/01/2019£781.52£485.43£296.09
03/02/2019£781.52£493.20£288.32
03/03/2019£781.52£501.09£280.43
03/04/2019£781.52£509.11£272.41
03/05/2019£781.52£517.25£264.27 (6 days late)
03/06/2019£781.52£525.53£255.99
03/07/2019£781.52£533.94£247.58
03/08/2019£781.52£542.48£239.04
03/09/2019£781.52£551.16£230.36Not Due
03/10/2019£781.52£559.98£221.54Not Due
03/11/2019£781.52£568.94£212.58Not Due
03/12/2019£781.52£578.04£203.48Not Due
03/01/2020£781.52£587.29£194.23Not Due
03/02/2020£781.52£596.69£184.83Not Due
03/03/2020£781.52£606.24£175.28Not Due
03/04/2020£781.52£615.94£165.58Not Due
03/05/2020£781.52£625.79£155.73Not Due
03/06/2020£781.52£635.80£145.72Not Due
03/07/2020£781.52£645.98£135.54Not Due
03/08/2020£781.52£656.31£125.21Not Due
03/09/2020£781.52£666.81£114.71Not Due
03/10/2020£781.52£677.48£104.04Not Due
03/11/2020£781.52£688.32£93.20Not Due
03/12/2020£781.52£699.33£82.19Not Due
03/01/2021£781.52£710.52£71.00Not Due
03/02/2021£781.52£721.89£59.63Not Due
03/03/2021£781.52£733.44£48.08Not Due
03/04/2021£781.52£745.18£36.34Not Due
03/05/2021£781.52£757.10£24.42Not Due
03/06/2021£781.52£769.21£12.31Not Due
Total:£30,000.00£16,891.20