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

In most 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 to assess both new and historical clients.

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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.

Read more about IREC Group and find the latest business headlines of the day with the Born2Invest mobile app.

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)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in Crowdfunding buzz, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us

Sharon Harris is a feminist and a part-time nomad. She reports about businesses primarily involved in tech, CBD, and crypto. She started her career as a product manager at a Silicon Valley startup but now enjoys a new life as a personal finance geek and writer. Her primary aim is to provide readers with a new perspective on the overlapping world of finance and technology.