ITS Ingenium – Selective invoice discounting
ITS Ingenium is a next generation talent management and integrated IT recruitment consultancy, focused on areas such as financial services, investment banking and capital markets, asset and investment management, hedge funds, e-commerce and social media. It was founded in 2010 by Dan Collier and James Murphy, who bring together over 30 years of experience in the industry.
The Challenge
A fast growing new company, with an 8-month turnover of £300k but looking to scale rapidly, was looking to do more work in the contract market space, requiring a flexible source of funding. Typically end customers would pay Ingenium after 30-45 days, while Ingenium would have to pay contract IT workers after 14 days to attract the best talent.
Despite having strong contacts and networks amongst blue chip companies, the founder of Ingenium found his 1 year track record meant funding options were limited. Moreover, his bank was promoting a factoring solution which involved outsourcing his credit control (and potentially damaging his reputation with key customers), and high monthly service fees regardless of whether he drew down on funding or not.
The Marketinvoice Solution
Marketinvoice proved to be the flexible solution that Ingenium was seeking. By signing up and submitting company information, global institutional buyers on the platform were able to analyse the strong growth of the company and previous experience of the management team. The company had blue chip clients and a good record of collection. Ingenium was able to post selected invoices for sale and receive up to 90% of face value funding at total costs as low as 1.0% of the face value. Using Marketinvoice, Ingenium pays no monthly service fee so only discounts invoices when cash is needed. This solution completely suited the company’s changing monthly cash position.
