Home » Funder – Questions

Funder – Questions

  1. Success Fee?
    • To promote B2B2C (Estate Agent) route-to-market.
    • Encourages agent to discuss CHAIN FREE® and CHAIN MENDER® with clients.
    • Over LTV lower bar for agent than over RICS Valuation.
    • Benefits client as agent will try to sell clients house for highest price (so client doesn’t have to take LTV).
    • Payable on completion (not exchange) reduces quantum (risk).
  2. Costs to launch?
    • £148K Setup Costs 17B > 29B
    • £452K Burn Cover and Growth 32B
  3. Minimum costs to launch?
    • £74K (50% Setup costs) with balance back ended (Funding T&Cs).
  4. Financial Guarantee?
  5. Lending on DataSource?
    • RICS Drive-by or DataSource whichever is lower.
  6. Headline Qs?
    1. Company: Albani Limited (pre-revenue startup)
    2. Pitch: Fintech solutions enabling homeowners to buy before selling through own Estate Agent for MV (insurance type proposition)
    3. Brand: Albani and stable of three products
    4. Investment: £5M (Restricted Sales) > £44M (Core Proposition) required to finance business for 74% Profit Share
    5. Profit: Y1 £0.86M; Y2 £1.37M (Restricted Sales) > Y1 £15.59M; Y2 £17.16M (Core Proposition)
    6. Simple Return Y2 (on funding package): 25.22% (Restricted Sales) > 38.92% (Core Proposition)
    7. Margin: 56% > 93%
    8. CEO + Founder: 40 years residential property experience (invested £1.2M Concept and Development)
    9. Team: CEO + 3
    10. Customers: Home owners selling houses > £500K
    11. Market: 684,000 house sold pa
    12. Distribution: B2B2C (4,000+ estate Agents) + B2C (Consumers)
    13. Route – to – Market: Trade Press – advertising – solus emails + digital marketing – pro-active social media
    14. Traction: National rollout + franchising in major home owning countries
    15. Barrier to Entry: First Mover + Vertical Marketing
    16. Competitors: None obvious / Quick Sale companies buy up to 1% annual house sales say 11,000 (2022)
    17. USP: Customer never has to sell for less than MV
    18. Company value: £1.2M
  7. Niche Market?
    • No
    • Our Price Bands (£250K > £700K) UK (Opportunity) 418,000
    • Our Price Bands (£250K > £700K) England and Wales (Market) 338,000
    • Core Proposition (3,000 Applications; 878 Sales)
    • 878 Sales = 0.21% Opportunity / 0.25% Market
    •  878 Sales = 10.6% Quick Cash Sale Industry (say o.75% 1,100,000 = 8,250)
  8. Corporation Tax?
    • 25%
  9. Route – to – Market costs?
    • Accounting principles exclude marketing expenses when calculating the gross profit margin.
  10. What do you mean by Fintech?
    • Using new technology as opposed to traditional financial methods to provide financial services.
  11. Why don’t you say “as a cash buyer you can BUY before selling ”  as opposed to “as a cash buyer you can SECURE….”?
    • Buy implies the seller will exchange with the buyer which the seller will not do prior to taking our finance.
    • Secure means the seller can tell the buyer the seller can quickly exchange contracts (if downsizing the seller knows they can take our finance in 5 days if they can’t sell for more and if upsizing the seller will have had 20 weeks to source a mortgage or any additional finance required).
  12. Your website contains too much information for the customer?
    • Our customer demographic is most likely aged 35 to 75.
    • We want to be different – we believe the non-tech design will be more acceptable to our target audience.
    • The content must promote ethical finance and transparency.
    • We don’t want our website to look like a company offering bridging-finance, fast cash or those of the Quick Sale Industry.  
  13. What is your procedure for answering customer questions?
    • We will answer them personally (not with a robot or online Q&As).