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Less2Care B.V.

presented by October Netherlands

€103,000

5.1%

36 months

B+

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location

Location

Hillegom, Netherlands

activity

Activity

Commerce

Presentation of the company

Created in 2009, Less2Care is active in the waste management systems for incontinence waste in elderly homes. The company, managed by Edwin Lieverse and Jop van Haaren, has 7 employees and is based in Hillegom.

The company’s main activities are:

  • Production, sale and installation of waste management systems for incontinence waste to the healthcare sector 
  • Sale of specific waste bags and filters 
  • Rental of waste management systems 
  • Maintenance of waste management systems

The company works with 7 persons own staff and outsources a number of its business processes.

Project Description

The company requests a loan of 103 000 € over 36 months to finance the growth of its activities (in existing markets and to France), requiring higher inventory levels and receivables, and to finance the expansion of the company, for which they had to move the company to a new office and production location last year. This project will be realised by the end of the year.

This project is a Flexible Bridge Loan, an amortizable loan with a standard commitment for the first 9 months and the possibility of early repayment at no cost for the remainder of the loan term, even in the event of refinancing by other financial institutions.

The amount offered on the platform is limited to 50470€, which is in line with the regulatory limits.

Analyst’s Opinion

With a turnover of 915 000 € in 2017 and an experienced team, the company has a good track record combined with a two-digits operating margin.

Growth in the turnover is driven by organic growth of sales in the Dutch market and 7 other European countries. In 2018 the company reported a sales volume of € 1 400 000 as preliminary result. The forcast has been based on the 2018 actual results.

The borrower has an excellent repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,72 and an excellent financial structure, with a forecast net debt / ebitda ratio of 0,5 and a net debt / shareholder equity of 65%.

The analysis of the project leads to a credit rating of B+ and a 5,1% annual interest rate.

*The multiple of FCCR at 1,72 means that the company has a safety margin of 72% 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.
  • Solid repayment ability with a forecasted FCCR of 1,72 reinforced by the support of shareholders.
  • Diversified recurring revenue stream 

Points of caution:

  • Potential competition from new entrants