€350,000
4.8%
18 months
B
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Location
Zoetermeer, Netherlands
Activity
Commerce
Presentation of the company
Created in 2013, 2 Way Trading B. V is active in the trading and distributions of IT products sector. The company, managed by Roderik Venselaar, has 5 employees and is based in Zoetermeer.
The company’s main activities are:
- Trading IT products
- Logistics concerning to the trade of IT products
The company works with B2B customers and distributors in mainland Europe.
The brothers Roderik and Arnoud Venselaar had more than a decade experience in trading of IT related products, such as hardware, when they started 2 Way Trading B. V.
The traders have an extensive network of clients in Europe and are able to react fast on demands in the market. Delivery is quick as the company has longstanding relationships with partners in the supply chain.
Project Description
The company requests a loan of 350. 000 € over 18 months to finance growth in transactions and make use of the trading opportunities arising in the market in the form of cash deals. This project will be realised this quarter.
The amount offered on the platform is limited to 171.500 €, which is in line with the regulatory limits.
Analyst’s Opinion
With a turnover of 34 240 000 € in 2017 and an experienced team, the company has a good track record combined with an acceptable operating margin.
The decrease in revenue was the result of a well-considered strategical choice to focus on less but qualitatively better deals, increasing the margin.
The forecast is based on the 2018 actual trading results and historical profitability levels. The borrower has a good repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,23 and a strong financial structure, with a forecast net debt / ebitda ratio of 0,9 and a net debt / shareholder equity of 62%.
The analysis of the project leads to a credit rating of B and a 4,8% annual interest rate.
*The multiple of FCCR at 1,23 means that the company has a safety margin of 23% relative to its ability to repay its credit maturities.
The expert opinion is given as an indication on the basis of the elements provided by the project holder and information from our databases (External data provider). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.
Strong points:
- Good historical performance based on diversified client base.
- Good repayment ability with a forecasted FCCR of 1,23.
- Strong network of distributors and clients.
Points of caution:
- Cyclical market.