Working capital financing for a profitable advertising agency
The Company is a full-service advertising agency that provides advertising and marketing services to clients, including strategic planning, creative work, media buying, digital marketing - in general, the Company provides a full marketing cycle from idea development to collecting campaign results not only at the Baltic, but at the world level.
The Company has several long-term international clients as well as many large local companies, in addition it has also worked closely with Government agencies and various municipal institutions, such as regional tourism centers. Therefore, the company's client portfolio is quite diversified. The Company requires additional financing because as the scope of works increases, the Company needs available funds to pay to suppliers, employees, and contractors, as the time between the start of the project and the invoice payment terms for completed campaigns vary from 2 to 6 months. In addition, funding would be required to hire more employees and purchase equipment for them.
Therefore, the Company is seeking EUR 52,000 financing for 18 months to increase its working capital. The loan will carry a 14.16% annual interest rate (1.18% monthly). The owner will provide a personal guarantee for the loan. The project risk rate is C (72 out of 100).There are a number of factors that make lending to the Company an attractive opportunity and the main highlights are as follows:
- The Company has almost 16 years of experience in the industry and the owner has worked in the industry for 30 years.
- The Company has been profitable for the past 8 years.
- The turnover of the Company has grown in the past 5 years and in 2023 was almost EUR 1.7 million.
- The Company has a strong Equity to Assets ratio of 78%.
- The shareholder of the Company will provide a personal guarantee for the loan.