Borrower case study – ValueLicensing.com

Licensed to thrill with ThinCats loan

Photograph of David Marshall (centre) with David Hubbard and Jonathan Horley from Value LicensingHave you ever wondered what happens to the thousands of software licences that companies buy, and then no longer need – do they just sit in the ether, wasting away? Derby based ValueLicensing.com has made a very successful business out of sweeping up these redundant licences, and selling them on at a reduced rate to other businesses, providing a very useful service for all involved.

ValueLicensing.com specialise in selling redundant Microsoft Volume Licences; they buy them from insolvencies throughout Europe, and from solvent companies that are downsizing or moving to subscription licensing like Office 365. They are a registered Microsoft Partner and Reseller, and pride themselves on giving those that need licences a good deal, and those that no longer need them, “significant value for an often overlooked asset.”

The opportunity arose earlier this year to purchase a very large number of licences from a European technical solutions provider, but the volume involved demanded a large initial payout, and a traditional bank loan was not going to provide the funding needed in the necessary timescale.

Jonathan Horley, founder of ValueLicensing.com, approached Sterling Capital Reserve, business finance specialists and ThinCats Sponsor, to speak to them about finance, “Given the amount of capital we were looking for it was always going to be a tough ask to get funding through that route but it was taken seriously.”

Pohotograph of a woman using a laptopDavid Griffiths, Managing Director at Sterling Capital Reserve, recommended ThinCats as the best way to finance such a proposition. Their experience in the industry meant that they were able to assess and analyse the value of the deal that ValueLicensing.com were proposing, decide that it was viable, and produce the Information Pack for consideration by ThinCats Lenders.

Mr Horley added, “We purchased the licences on the completion date of the loan. It was quite challenging to line up the loan and an international transaction of that size to complete on the same day but with Sterling Capital’s help it all went through surprisingly smoothly.” And as a ThinCat investor, if you were involved in funding this purchase, you have helped to resurrect a huge number of otherwise redundant Microsoft licences; an Excel-lent investment indeed…

For information on Microsoft Volume Licences, please visit www.valuelicensing.com.  For further information about how Sterling Capital Reserve research and analyse business loan proposals, visit www.sterlingcapitalreserve.co.uk. An explanation of P2P lending and the role that Sponsors play in supporting the loans process can be found at www.thincats.com/sponsors/about-sponsors