LENDERWIZE - Investment Opportunity
The Founding partners have C-Level experience with Tier1 Operators, and have developed a working solution to a significant problem in the Industry - lack of working Capital. Lenderwize has developed a Fintech platform which certifies “proof of service”: real phone calls, real invoices and the quality of delivered services.
After development of two years, the company deployed its’ platform on March 8th 2020 and since has already deployed 28 Mln in funding facilities.
With a Sales pipeline of 40Mln and the recent signing of a funding facility of 40Mln with the largest Alternative Lender in Europe, the company expects to reach a valuation of 100Mln within 18 months.
LIVE PITCHING
Lenderwize's CEO and co-founder Lawrence Gilioli presenting at one of Angel Den's pitching events
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THE IDEA
Products & Services
Lenderwize provides Working Capital to Telecom Wholesalers. Their typical clients are mid sized Operators (50-300mln in annual revenues), hence SMEs which are "Transit" operators. They sell to large Tier1 Operators (Originators) and buy from smaller (Terminating) Operators. Thanks to their Know How and Industry Knowledge, they have identified 1350 Wholesalers in need of $40M, hence the Cost of Acquisition of clients is very low. Likewise the Back Office, Credit Vetting and Loan Management is very lean, making Lenderwize a competitive provider vs Market Invoice or Funding Circle. Clients benefit from their USP as they act as a Broker seeking "bigger, cheaper and better" funding sources.
Problem Solved
Large Operators pay on 60 days whilst suppliers are paid on 7 days, hence the middlemen suffers an average -53 day Cash Flow Gap. Lenderwize solves this problem. Banks do not understand the Industry because a phone call is not a tangible asset such as Real Estate, hence Banks provide limited help. The Industry is perfect for Alternative Lenders, and clients pay above market Interest Rates. They mitigate risk by using Fintech and Insuretech Platforms which allow us to certify "proof of service", verify the "delivery of calls", request the "insurability of Invoices" and monitor the "payment" of invoices between clients and suppliers. The Invoices are the underlying Assets.
Revenue Model
Lenderwize earns on the Spread between the interest paid by Clients (Telecom Wholesale Borrowers) and Lenders. Typically a client pays 14,4% APR (1,2% monthly) and a Lender earns 9% APR, which equates to 5,4% APR for Lenderwize, on an estimated Loan Book of $100 Mln which we expect to reach within 24 months.
Typically Clients borrow on a recurring Monthly basis, currently 85% of clients are recurring.
They also have additional revenues from two SPVs they setup, actual Telecom Wholesalers which trade, to give "proof of concept" and to sell invoices to their Swiss Factoring Partners and to the UK Factoring Partners. The margin on trades is 2% with a forecasted revenue of 1,5Mn /month.
Exit Strategy
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Minimum Target
£ 200,000
Maximum Target
£ 1,500,000
Minimum investment amount
£ 10,000
Maximum investment amount
£ 1,500,000
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Location
LONDON
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The Idea
Products & Services
Lenderwize provides Working Capital to Telecom Wholesalers. Their typical clients are mid sized Operators (50-300mln in annual revenues), hence SMEs which are "Transit" operators. They sell to large Tier1 Operators (Originators) and buy from smaller (Terminating) Operators. Thanks to their Know How and Industry Knowledge, they have identified 1350 Wholesalers in need of $40M, hence the Cost of Acquisition of clients is very low. Likewise the Back Office, Credit Vetting and Loan Management is very lean, making Lenderwize a competitive provider vs Market Invoice or Funding Circle. Clients benefit from their USP as they act as a Broker seeking "bigger, cheaper and better" funding sources.
Problem Solved
Large Operators pay on 60 days whilst suppliers are paid on 7 days, hence the middlemen suffers an average -53 day Cash Flow Gap. Lenderwize solves this problem. Banks do not understand the Industry because a phone call is not a tangible asset such as Real Estate, hence Banks provide limited help. The Industry is perfect for Alternative Lenders, and clients pay above market Interest Rates. They mitigate risk by using Fintech and Insuretech Platforms which allow us to certify "proof of service", verify the "delivery of calls", request the "insurability of Invoices" and monitor the "payment" of invoices between clients and suppliers. The Invoices are the underlying Assets.
Revenue Model
Lenderwize earns on the Spread between the interest paid by Clients (Telecom Wholesale Borrowers) and Lenders. Typically a client pays 14,4% APR (1,2% monthly) and a Lender earns 9% APR, which equates to 5,4% APR for Lenderwize, on an estimated Loan Book of $100 Mln which we expect to reach within 24 months.
Typically Clients borrow on a recurring Monthly basis, currently 85% of clients are recurring.
They also have additional revenues from two SPVs they setup, actual Telecom Wholesalers which trade, to give "proof of concept" and to sell invoices to their Swiss Factoring Partners and to the UK Factoring Partners. The margin on trades is 2% with a forecasted revenue of 1,5Mn /month.
Exit Strategy
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