Projects } TBK Capital

Bishop Warden – Over $3 million signed up already this year

In less than a year from when the business started they signed up $3 million for collection of which $1 million was in little more than a week. Bishop Warden is well on track to meet and exceed its financial forecasts.

I’ve had a number of queries from subscribers to our recent Opportunities newsletter regarding investment in Bishop Warden and why they are quite different from traditional “debt collection agencies”.
 
Bishop Warden’s value proposition is simple. Assign them the debt owed to your business and they will collect it through litigation, funded by Bishop Warden.
 
The business owner pays nothing up front and can concentrate on the core business knowing every legal avenue will be pursued to force payment.
 
Over $3 million signed up already this year
In less than a year from when the business started they signed up $3 million for collection of which $1 million was in little more than a week. Bishop Warden is well on track to meet and exceed its financial forecasts.
 
They are also receiving more repeat business, which confirms the value they bring to their customers.
 
Verified commercial debt only
The business specialises in the assignment of commercial debts using a debt assignment model. It only accepts debts that are owed from company to company.
 
They also only accept debts that are verifiable, documented, and for which they have evaluated the chances of collection.
 
It does not take on consumer debt. That market is dominated by large international players. Commercial debt is generally much larger than consumer debt, and in any event Bishop Warden only buys commercial debt over $15,000. Their average debt currently owned is $55,000.
 
The debt is assigned to Bishop Warden for a minimal upfront payment to the current creditor. The process then entails Bishop Warden, as the owner, immediately issuing court proceedings for recovery of the debt. Their only cost is paying the court costs of their specialist lawyers.
 
On collection the amount received, after Bishop Warden’s collection costs, is split between the previous owner of the debt and Bishop Warden on a pre-agreed basis.
 
The Offer
Currently Bishop Warden is being forced to be over selective about the commercial debts they agree to take on because litigation is being funded from their cashflow received from settlements. The company does have any external funding as the business is currently being funded by its shareholder.
 
The more working capital they have the more they can take on and the money raised through this new share offer is primarily for that purpose - to fund litigation and collection costs for new debts. Part will also be used to increase its sales and marketing effort and bring on new staff.
 
The issue of the new shares will enable the business to expand rapidly. Financial forecasts show Bishop Warden is predicting income of over $2 million for year ending 2018 increasing to over $10 million by 2022 at its current rate of growth. Gross profit ranges from 27% to 36%.
 
The business has recently been valued at a pre-money value of $3.3 million. Accordingly, the offer is to raise $1.5 million for 35% of the shares in the company.  A copy is available to approved potential investors on signing a confidentiality agreement.
 
Share issue
The owner of Bishop Warden has chosen to raise the working capital required for the expansion of the business by issuing new ordinary shares. According to company policy and performance, this would enable investors to receive dividends, and would reward early subscribers a profit on their investment in the event of a trade sale.

Want to Know More?
If you’d like to know more about the this Offer and receive a copy of the Information Memorandum, email or give me a call on +64 21 902 901 or +64 9 307 3257.

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The above investment is not an offer of financial products that requires disclosure under the Financial Markets Conduct Act 2013 (Act) and is available only to wholesale investors as defined by that Act. It is intended for distribution only to selected people to whom, under the relevant laws, it can be lawfully distributed. It cannot be distributed in any other jurisdiction, or to any other people. It is not an offer or solicitations in any jurisdiction in which such offers or solicitations are not authorised, or in which the person making such offers or solicitations are not qualified to do so, or to any person to whom it is unlawful to make such offers or solicitations. Any representation to the contrary would be unlawful. No action has been taken by any person that would permit a public offering in any jurisdiction where action for that purpose would be required.

Cheers



John Paine B.Sc., Dip BIA
TBK Capital Limited
Level 10, 120 Albert Street
Auckland 1010, New Zealand
Phone +64 9 307 3257
Fax +64 9 309 4519
Mobile +64 21 902 901
Email john.paine@tbkcapital.co.nz

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