The financial journey of Enter Sales & Distribution with Invoier Partner
After 16 years in the telecom industry, in different roles at several large companies in that field, Patrik Embermark had gotten to know the industry's challenges well, but also its resellers and their needs.
With time he had started to see a potential in the market, a segment that wasn't targeted by any of the large companies and thereby was an open gap on the Swedish market. He decided to start a business of his own, teaming up with some previous industry colleagues who had many years of experience from the industry and created Enter Sales & Distribution which in a unique way helps companies with both sales, distribution and marketing, not the least when they are about to establish themselves in the Swedish market. But this is a business model that requires high levels of liquidity.
Being able to offer customers the payment times they are used to is a must, but it places great demands on a really efficient cash flow. I want to use our money not just once or twice per month, but maybe four or five times!
Growth and liquidity as the defining factor
The business operation of Enter Sales & Distribution has two main orientations, to sell and distribute products for which they have direct distribution agreements with the largest resellers in Sweden but also to sell refurbished phones to them. Today the company has distribution agreements with six global manufacturers within the telecom industry. The range of products contain everything from mobile phones and accessories to these, to IOT products. The company's client portfolio has grown very fast with more than 16 large resellers/retailer chains and phone operators.
The retail chains have traditionally focused entirely on sales of new products. But with increased environmental consciousness, as well as new expectations from the public, the interest for the refurbished market has increased significantly in recent years. Refurbished phones is a relatively new concept in Sweden and means that the consumer buys a used phone, in mint condition and with a warranty. It's a more sustainable, and also more economical, option for the consumer as well as a timely service. Ökad inflation och högre avgifter för hushållen kan också komma att ge refurbmarknaden ytterligare skjuts.
The refurbished part of the market is primarily run by the operators today, rather than the retail chains, even though the interest amongst these is also increasing. Enter Sales & Distribution offer the retail chains to get started with selling refurbished phones too and considering the greater consumer demand it seems to have the potential to become a significant business field within a few years.
Waiting for payments - a bad business
In order to grow in the speed that Enter Sales & Distribution wants, and has demand for, the financing of the large purchases has become crucial. In the industry it is common with large orders, something that is also more economically beneficial. The downside of it is that one is forced to spend the money first and then wait until the resellers have purchased, and also paid, which quite often is 60 days later. A negative effect of this is often that the business risks having to stop in the meantime and creates a loss of new business due to the fact that it requires a very high liquidity. In the meantime the business can't be on hold. To wait for payment days simply becomes bad business.
In order to maximize its growth, Enter Sales & Distribution, chose to finance its business continuously. That way they don't have to wait for payments anymore and can instead turn over the same money several times during the same period of time. Thereby they have enabled their strong growth rate and can focus on the growth ahead!
Peter Söderström (Senior Key Account Manager) and Patrik Embermark (CEO) in the office close to Kungsträdgården in central Stockholm.
Patrik Embermark shares his experiences of financing in a company in strong growth.
Increase the growth rate with Invoier Partner
With the service Invoier Partner you can easily get all your account receivables directly financed all the time. That way you don't need to put your business in pause mode in order to wait for incoming payments from clients and can focus on your company's growth, without spending time on invoice administration. Invoier Partner is a service for companies that want to automate more or all of their invoice management. Invoier Partner is a service for companies that want to automate most or all of their invoice management.
Boka ett gratis möte med vår rådgivare Henrik Windahl som hjälper dig att se vilka möjligheter som finns för just ditt företag!
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Invoier provides solutions for company financing and has developed Sweden’s only marketplace for invoices. The purpose is to enable market-based pricing for financing and growth of small- and medium sized businesses, as well as a new type of investors get access to this market. The technical base of the offer consists of a unique AI engine that will anticipate both if and when an invoice will be paid. Invoier was founded in 2018 in Stockholm and is financed by the EU and KTH and operates with permission of the Swedish Financial Supervisory Authority and the Swedish Authority for Privacy Protection. Read more about Invoier Read more about Invoier