Background

For over two decades, an independent gaming software company based in the UK has been developing gaming content for gamers of all ages. The first game they developed in 2002, a virtual football betting game, remains their most popular game to date. This virtual football game offers one of the most immersive sports betting experiences for football fans worldwide. The continued success of this game prompted the company to expand its offerings, growing its content library to over 200 games, ranging from online slot machines to interactive world-building experiences. While developing new production studios to create this wide variety of games, the software company also aimed to increase its employee count and expand into new geographical markets.

In the past two years, the company has experienced remarkable growth, expanding its team from 25 to 75 employees. With the help of new team members, the business could then scale up the software company’s diverse range of games and broaden its geographical presence. Despite having more manpower, cracking new markets remained a challenging task. As the founder stated, “Finding talent is hard, and retaining the best developers in order to create world class games on an international scale is a rigorous process as well.”

Challenges

The company's rapid growth led to financial and operational challenges. As the gaming company expanded into Malta, Serbia, and India, legal and payroll expenses rose significantly. The business’s monthly expenditures increased from around £60k to approximately £400k, creating a cash flow squeeze.

Before they started using Lenkie to address their cash flow problems, the company relied on an overdraft from a traditional bank. However, this conservative method came with slow and lengthy application processes and was not adequately scalable for the company's growing needs.

Solution

Lenkie's Credit Facility offered a lifeline, primarily through its ability to ease cash flow concerns. After a straightforward 2-minute application, the company received a substantial line of credit within 24 hours. This facility enabled the company to spread large quarterly bills over more manageable monthly payments, significantly easing financial planning and budgeting for future expenses.

Funds from Lenkie were used to cover expansion-related costs, such as market entry, daily operating expenses, licensing, and conference participation. This financial flexibility was instrumental in the company's growth and expansion strategy. As expressed by the managing director, “knowing you have the cash when you need it gives you a bit more confidence in running your business.”

Beyond financial relief, the partnership with Lenkie bolstered the company’s confidence in managing growth. With ready access to future capital, the company could plan and execute growth strategies more aggressively. The company intends to continue using Lenkie's financial services for its ongoing and future needs, valuing the speed and flexibility with which it can access funds.

For this UK-based gaming software company, Lenkie’s accessible and flexible funding was not just financial aid, but a strategic tool that enabled them to pursue their growth ambitions with greater confidence.