Roamingexpert.com Ltd

Other

Funds Requested

£75,000.00

Offered so far

£0.00

Loan term

60 MONTHS

Auction Closed

2015-03-05

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About the Business

Company Name: Roamingexpert.com Ltd Company Number: 8016744
Business Type: Other Years Trading: 2-3 years
Business Location: RANGLET ROAD, WALTON SUMMIT CENTRE BAMBER BRIDGE

About the Risk

Risk rating

B

Default rate

7.10%

Bad debt rate

5.84%

About the Security

Security Offered:

All Assets Debenture - Fixed and floating charge created over all assets of applicant company

Est. Equity: 0.00

Personal Guarantee - PG from Mark Sonne

Est. Equity: 0.00

Risk Indicators Identified:

Important Files

Who are we?

Visit Our Website

The way today's businesses use their mobile devices has shaped the business telecoms industry. Roaming Expert is an independent and unique business formed to help businesses tackle the problem of high international call and data roaming costs. Based in the North West of England, Roaming Expert has gone from strength to strength..

The business has a loyal customer base, and were formed to help their clients save money, avoid large mobile roaming bills and navigate the minefield of significantly different international mobile roaming charges.

This company supply bespoke mobile phone packages business to business generally on 2 year contracts. Includes option for airtime only or package to comprise of airtime and handsets. The average margin 30 per cent, higher if handsets are included.

Payment terms for Sales - line rental monthly in advance and usage monthly in arrears. Bills are issued monthly on 12th and collected via direct debit 7 days later. Payment to phone suppliers either Vodafone or O2 on same terms, but are paid a few days after funds collected in. Key issue regarding cashflow relates to the fact that handsets are paid on 30 day terms to suppliers, but sales proceeds are only effectively collected over 24 month periods. The company has Circa 110 clients, no indemnity claims received on direct debit.

The business has been growing steadily and their clients sign up to 24 month contracts as a rule. On renewal, they continue for another 24 month period due to the excellent service levels and savings being made. The forecast turnover to Oct 2015 is £1.6m and PTP at 30%. At present, the purchase of handsets is limited to cash flow as the initial outlay is only recouped over the rental period ie 24 months. As a result they have had to turn business away. From their own internal calculations, the company have broken even after 12 months of the contract and the next 12 months represent the profit element.

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Loan Offers

What is the loan for?

The loan requested will help the business move towards their growth ambitions of sales at 250Kpm. Principally this involves a review of their website £8K, outbound third party sales campaign (8K) and purchase of handsets for orders that require both airtime and hardware.

Why consider investing?

Experienced and knowledgeable directors. Good track record with profits made and retained.Business can grow faster and more profitably with support for hardware purchase.Niche in that BTB clients with overseas staff gain huge benefits

Previous Associated Businesses

In the past the Managing Director (MD) has considered a variety of business models and a number of companies were set up for this purpose. With better buying power through Roamingexpert.com. these companies became redundant and have been closed off through formal dissolution having never traded.

The company known as Red Rose Telecom Ltd (Red Rose) was his first trading company and operated on a commission only basis. This is a long established business that has operated successfully for 12 years since inception.

As the business model evolved, a new company was set up known as Roamingexpert.com Ltd which actually bought “air time” and sold it on with a turn to its business clients.

This is a more profitable model than the commission only method used by Red Rose. In time, as clients come out of contract with Red Rose, they are being slowly migrated across to Roamingexpert.com Ltd. There is no trading relationship as such between the two companies and Red Rose will eventually cease to trade once all clients have been successfully migrated across. This may take about 2 years given the length of time the contracts have been established.

In time, as clients come out of contract with Red Rose, they are being slowly migrated across to Roamingexpert.com Ltd. There is no trading relationship as such between the two companies and Red Rose will eventually cease to trade once all clients have been successfully migrated across. This may take about 2 years given the length of time the contracts have been established.

Security

The Loan is to be secured on a directors guarantee and an All Assets Debenture

The Director has an estimate net worth of £5k, owns a property with estimate value of £365k and approx. £85k Equity. The Directors net worth does not take into account assets such as vehicles and cash in bank.

DateAmountCapitalInterestReceived
01/04/2015£1,773.24£853.24£920.00
01/05/2015£1,773.24£863.71£909.53
01/06/2015£1,773.24£874.30£898.94
01/07/2015£1,773.24£885.03£888.21
01/08/2015£1,773.24£895.88£877.36
01/09/2015£1,773.24£906.87£866.37
01/10/2015£1,773.24£918.00£855.24
01/11/2015£1,773.24£929.26£843.98
01/12/2015£1,773.24£940.66£832.58
01/01/2016£1,773.24£952.20£821.04
01/02/2016£1,773.24£963.88£809.36
01/03/2016£1,773.24£975.70£797.54
01/04/2016£1,773.24£987.67£785.57
01/05/2016£1,773.24£999.78£773.46
01/06/2016£1,773.24£1,012.05£761.19
01/07/2016£1,773.24£1,024.46£748.78
01/08/2016£1,773.24£1,037.03£736.21
01/09/2016£1,773.24£1,049.75£723.49
01/10/2016£1,773.24£1,062.63£710.61
01/11/2016£1,773.24£1,075.66£697.58
01/12/2016£1,773.24£1,088.86£684.38
01/01/2017£1,773.24£1,102.21£671.03
01/02/2017£1,773.24£1,115.73£657.51
01/03/2017£1,773.24£1,129.42£643.82
01/04/2017£1,773.24£1,143.27£629.97
01/05/2017£50,827.91£50,211.96£615.95
01/06/2017£0.00£0.00£0.00
01/07/2017£0.00£0.00£0.00
01/08/2017£0.00£0.00£0.00
01/09/2017£0.00£0.00£0.00
01/10/2017£0.00£0.00£0.00
01/11/2017£0.00£0.00£0.00
01/12/2017£0.00£0.00£0.00
01/01/2018£0.00£0.00£0.00
01/02/2018£0.00£0.00£0.00
01/03/2018£0.00£0.00£0.00
01/04/2018£0.00£0.00£0.00
01/05/2018£0.00£0.00£0.00
01/06/2018£0.00£0.00£0.00
01/07/2018£0.00£0.00£0.00
01/08/2018£0.00£0.00£0.00
01/09/2018£0.00£0.00£0.00
01/10/2018£0.00£0.00£0.00
01/11/2018£0.00£0.00£0.00
01/12/2018£0.00£0.00£0.00
01/01/2019£0.00£0.00£0.00
01/02/2019£0.00£0.00£0.00
01/03/2019£0.00£0.00£0.00
01/04/2019£0.00£0.00£0.00
01/05/2019£0.00£0.00£0.00
01/06/2019£0.00£0.00£0.00
01/07/2019£0.00£0.00£0.00
01/08/2019£0.00£0.00£0.00
01/09/2019£0.00£0.00£0.00
01/10/2019£0.00£0.00£0.00
01/11/2019£0.00£0.00£0.00
01/12/2019£0.00£0.00£0.00
01/01/2020£0.00£0.00£0.00
01/02/2020£0.00£0.00£0.00
01/03/2020£0.00£0.00£0.00
Total:£74,999.21£20,159.70