IREC Group Registered a Record Turnover of €500,000 in Q1

IREC Group, an innovative SME, is an Italian fintech company focused on assisting SMEs and Professionals in the management of receivables from their clients, through a subscription-based service that includes both business information and debt collection.

IREC bases its business model on the combination, unique in Italy, of technology (thanks to proprietary algorithms for creditworthiness), investigative license, and the team’s ultra-decade-long experience.

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The growth of an “anti-cyclical” business in a time of crisis

In December 2022, the company raised €126,000 from 36 investors with an equity crowdfunding round on Crowdfundme. At the time of the campaign, the company had more than 6,000 files and investigations worked on in 2021, and €970,000 in sales, and about €1 million as early as September 2022.

In a communication to the members, IREC Group announced the results of the first part of 2023, reporting in particular that the turnover for the first 4 months of the year reached €496,000, an increase of 68 percent compared to that of the same period in 2022.

Even more remarkable was the increase in EBITDA, which, again in the first four months, amounted to 84 thousand euros, compared to 3 thousand in the first four months of last year.

But already the sales results for Q1 2023 were significantly better than the targets:

Total Business: 43.10% increase over the same period last year.
Credit files and volume: 4,744 credit collection files were entrusted (up from 1,424 in 2022). The full 2023 target of 4,580 entrusted files was already exceeded in Q1, up 310% from 2022. The value of entrusted loans had an increase of +20% over 2022.
Turnover: Q1 2023 turnover of 354,000 with an increase of 36.73% compared to 2022.
Ebitda: profit margin of more than 54,000 euros, amounting to +289% compared to 2022 with a turnover/ebitda ratio of 15.37%.

The IREC Group Model

In the vast majority of cases, debt collection for SMEs is done through law firms with fees that often do not justify the recovery of smaller amounts. In addition, prior creditworthiness analysis is often inaccessible for small businesses.

With IREC, on the other hand, the client can independently access via web or mobile app creditworthiness analyses on companies (rated from 0 to 100 on the status of the company being investigated), to assess both new and historical clients with objective data on the opportunities or risks of a new business relationship.

In case debt collection practices are initiated, again from the app or from the restricted area on the website, the customer receives up-to-date news on the progress of all assigned activities, from sending the registered letter of default to the report of the brokers, also receiving notifications and SMS in real-time whenever a collection is confirmed.

Different subscription denominations make it possible to meet the needs of each type of customer and provide a clear forecast of the cost of credit recovery.

Credit analysis of individuals

In addition, the company is about to launch a new algorithm (K-Score) for credit analysis of individuals, also based on predictive behavioral assessment, which will enable the provision of business information on individuals in real-time.

A service that, first in Italy, will enable SMEs and professionals, for example, to predict the creditworthiness of clients also based on that of their directors, the creditworthiness of tenants, or even that of subcontracting artisans on construction sites.

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(Featured image by PublicDomainPictures via Pixabay)

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