Konvergent

PATRICK VAN DER KLEIJ - GENERAL MANAGER

"The positive aspect of Boozt24 is that they think along with you, focusing on opportunities and swiftly addressing issues."

About Konvergent

Konvergent, based in Teuge, Gelderland, specializes in high-quality ingredients for the production of premium pet food, particularly for dogs and cats. The company not only trades these ingredients but also provides additional services, including repackaging, fine grinding, sieving, and mixing, tailored to the customer's preferences. They also handle processing permit-required ingredients such as animal proteins, significantly easing the burden on the final producer. "Our goal is to add value to ingredients and work as sustainably as possible, upgrading by-products, locally sourcing raw materials, and minimizing unnecessary transportation, utilizing third-party warehouses elsewhere in Europe." – Patrick van der Kleij, CEO of Konvergent.

Start ingredient production in the Netherlands

When the company started in 2021, the production plant from which Konvergent now operates was still owned by a company facing difficulties obtaining an export license for animal proteins to Asia. The facility, later leased by Konvergent, remained unused for a considerable period. Despite this, Van der Kleij, familiar with this specific aspect of the ingredients market from previous roles, saw opportunities to operate from the Netherlands, leading to a 50-50 shareholder agreement. Konvergent became a reality, and the processing and delivery of ingredients began.

Challenge

When Konvergent approached Boozt24 for invoice-based pre-financing, the company had only been in existence for a relatively short time. The initial financial figures were understandably not strong enough for traditional bank financing, and suppliers also imposed limits on creditworthiness.

While the startup capital was initially not an issue from a financial perspective, as Van der Kleij's partner could provide it, the company encountered the challenge of having to wait for customers to pay invoices while needing to pay suppliers promptly. This prompted them to explore suitable accounts receivable financing to access liquidity earlier. "We wanted to retain the freedom to operate under all circumstances," said Patrick, "to execute our plans to deliver high-quality ingredients, preferably in a sustainable manner."

Solution

The idea arose to explore whether factoring could improve cash flow. However, the search among major players in the factoring market did not yield the desired solution. Eventually, a broker connected the company with Boozt24, where it was possible to start factoring with a small limit, gradually growing with the increasing turnover. "Boozt24 doesn't have a 'rigid attitude,' which I find very pleasant," explained Patrick, "you can just call the financial specialists at Boozt24 if you have questions, the lines are short, and that's nice." Boozt24, with its quick responses, approachability, and solution-oriented mindset, lived up to its values. Currently, Konvergent has access to a significant portion of the invoice amount immediately after invoicing, making it easier for the company to finance new purchases.

The Result

Boozt24 takes promising young companies under its wing

The initial financial figures were naturally not strong enough for a bank to provide working capital, and suppliers also imposed creditworthiness limits. As a young company, you face the challenge of wanting to make purchases but having to pay in advance while not being able to invoice your own customers, thus lacking the necessary financial means – a classic catch-22 situation. Unlike banks, Boozt24 looks at the entrepreneur, their plans, and the market opportunities they create. "The great thing about Boozt24 is that they think along with you, focusing on opportunities and swiftly addressing issues." – Patrick van der Kleij, CEO of Konvergent.

Patrick van der Kleij

General manager

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