Solvionic #2

Presentation of the company

Founded in 2003, SOLVIONIC is an innovative company specialized in the production of ionic solvents. The company, managed by François Malbosc, employs 13 people and is based in Toulouse.

research, development, manufacture and marketing of more than 150 references of the latest generation ionic solvents. Ionic solvents are used in the manufacture of the latest generation lithium-ion batteries, catalysis and surface treatment.

The company works with approximately 200 professional clients per year, including some of the biggest names in the technology industry and many recognized universities.

Since 2016, the company has been located in the Sanofi Biopark, benefiting from the support of this large group and the synergy of the company network. 

Project Description

The company wishes to borrow 31 500€ over 24 months to finance the growth in the continuity of the investments made in 2017.

As a reminder, the Lendix lending community supported Solvionic in 2017 with €104,000 to finance the purchase of software, the completion of a study, a patent application and the development of the sales force.

This project is a medium-term loan with a capital amortisation deferment proposed on the Lendix platform and as such presents a method of capital repayment different from standard projects. For the first 3 months, the lenders will receive interest and for the next 21 months, the lenders will receive interest and principal amortization. This principal repayment profile matches the borrower’s financing needs while allowing lenders to earn a higher amount of interest.

Like all projects presented to private lenders on Lendix, it is co-financed with institutional investors, sophisticated investors and the management of Lendix, subscribers to the Lendix Fund.

Analyst’s Opinion

With a turnover of € 683,980 in 2017 and an experienced team, the company has a good performance record in terms of activity combined with double-digit operating profitability.

In 2017, the increase in profitability is linked to sales of products with a higher margin.

The forecast has been prepared on the basis of 2017 performance.

The borrower has a good repayment capacity with a fixed charge cover ratio* (FCCR) of 1.03 and an excellent financial structure with a net debt to EBITDA ratio of 1.6 and net debt to equity ratio of 46.0%.

The analysis of the project and the borrower leads to a B rating with excellent financial solidity and a rate of 4.80% per year.

Highlights 

• Good performance history on a diversified client base
• Good positioning on the market with a quality product.
• Correct forecast repayment capacity with a CCRF of 1.03 supported by the historical banking pool

Vigilance Points 

• Long operating cycle
• Dependence on European subsidies

The multiple of FCCR at 1.03 means that the company has a safety margin of 3% 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 (Scores & Decisions, Corporate Banking File). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.