Industry: media, digital
Objective: securing off balance sheet growth financing
A digital media company was exploiting sources of funding, to initiate growth. Due to legacy balance sheet positions, classic bank loans were not an option, shareholders would waive dividends, but not inject fresh capital for growth.
An assessment of the companies business processes, revealed the dominant business model, was based on B2C subscription contracts. Concluding A risk analysis going forward was concluded and presented to the board.
With the consent of the board, a number of financial service partners from the consumer finance segment have been invited and evaluated. After a final selection a, so far unprecedented financial model has been developed and implemented with a selected financing partner.
Consumer subscription contracts were prefinanced by the financial services partner. Whereas monthly settlements were charged to consumers to the benefit of the financial services partner, short term cash flow was strongly enhanced for the firm and allowed for further growth.
To create a sufficient level of certainty for all parties, legal aspects, proficients for bad debt, billing an collection services were incorporated in the business model.