Solar Monkey, a Netherlands-based B2B software provider, offers a comprehensive solution for solar panel installers. Their software streamlines the entire process, from designing and calculating solar modules to creating proposals and managing installations post-deployment. With a team of over 55 employees, Solar Monkey operates in the Netherlands, Belgium, Germany, the UK, and Spain.
Maintain a stable cash balance for more security
The Dutch market for solar panel installers is currently facing challenging times. One of the contributing factors is the absence of a long-term strategy for sustainable energy provided by the Dutch government, compounded by uncertainties about grid fees that energy suppliers charge private households.
This also impacts Solar Monkey – albeit to a lesser extent. Despite the strong growth signals in other markets, CEO Jan Pieter Versluijs recognized the need for a buffer to maintain a stable cash balance:
"In challenging times we already slimmed down some costs to be leaner. However, we also want to retain sufficient firepower to profit from upcoming growth markets."
That’s why Solar Monkey sought a flexible financing solution to maintain a stable cash balance, keep its team on board, and bridge the gap to become profitable. "In the long run, this will help us achieve our business goals," says Jan Pieter.
While venture capital had been Solar Monkey's go-to financing option in the past, their strong track record, stable revenue, and established business model made debt financing a more suitable instrument at this point in time. Recognizing this shift, Jan Pieter and his team explored various debt financing sources.
Tailored debt financing that adapts to Solar Monkey’s situation
"When we met re:cap for the first time, we quickly realized how well they understand the financing needs of software businesses using debt capital and how flexibly they can adapt to different scenarios," says Jan Pieter.
Debt financing relies on clear financial data, streamlining the process compared to equity financing. This makes it ideal for established companies like Solar Monkey with a strong track record. As a strategic complement to their existing funding, debt financing from re:cap offered Solar Monkey several advantages:
- It’s non-dilutive. Solar Monkey retains full control over their company.
- It’s easier and less time-consuming to secure.
- It offers a high degree of flexibility, allowing Solar Monkey to draw funds as needed.
For Jan Pieter, it was crucial to have this additional layer of debt "on top of our current cash flow, enabling us to balance our cash position and keep it at a certain level." This balancing act is made much easier with some additional cash buffer from re:cap.
The partnership with re:cap provides Solar Monkey with a flexible financing line, allowing them to access funds as needed. They already utilized €600,000, with plans for additional financing later this year.
"This flexibility ensures a stable cash flow while we focus on achieving long-term growth and profitability," concludes Jan Pieter.
