Client: Technology company
Facility: £750,000 IP-backed loan
Purpose: To consolidate expensive business debt and fund expansion
Background
Our client developed a successful stop-smoking app offering users 24/7 support, craving management tools, and milestone rewards. Since launch, the app has achieved over seven million downloads.
Following an initial free testing phase, the app has been monetised by selling bulk licenses to NHS Trusts and medical professionals in Germany, creating a strong and growing revenue stream.
The business approached ASC seeking £500,000 to support European expansion and to redeem various loans taken during the app’s development, to simplify cash flow and reduce borrowing costs.
Challenges
Despite the app becoming increasingly profitable and having a very strong pipeline, including contracts with pharmacies in other European countries, our client’s bank was unwilling to provide the required funding.
Solution
We approached an alternative lender, emphasising the app’s proprietary technology and a strong pipeline of prospective new clients, to secure an intellectual property (IP)-backed loan. Given the strength of our client’s IP, the lender was willing to lend £750,000, exceeding our client’s original funding requirement by £200,000.
Finalising the deal involved negotiating with the incumbent bank to release the IP and obtaining an IP valuation. Through perseverance and close collaboration with the lender, we secured the full funding our client needed to grow their business internationally.
Outcome
The client has now consolidated its debt, reducing annual servicing costs by over £160,000, and has the funding in place to pursue international growth and capitalise on increasing demand for its app.
