In 2008 we used to pay Premium Rate Number revenue to our suppliers (TV-operators, gaming companies, etc) 45 days after the end of the respective month, after payment from our clients (the international carriers) had come in.
The suppliers expected payment within weeks – or in certain cases within days - but the companies offering Premium Rate Numbers were only able to prepay limited amounts they had available in cash.
On a train journey to Zurich, the owners of kwak Telecom discussed possibilities to get around this bottleneck. Since no conventional factoring bank was suitable to factor these debts, the idea was born to start our own factoring company.
From that day on the objective was clear but it was a long and bumpy road. It took nearly a year to found a company and to be accepted by Credit Suisse and a correspondence bank in Cyprus.
But the concept was successful. kwak Factoring Ltd. has now became one of the pillars of the kwak Group and has been instrumental in the ongoing success of the new leading Premium Rate provider company.
In 2013 the shareholders of kwak Factoring decided to widen their focus and to enter new business areas, especially to benefit from the special economic situation in Cyprus. The company name was changed to kwak Ventures Ltd. to reflect this change.
Who stands behind kwak Ventures?
Telecommunications entrepreneur Ludwig Braum is the driving force behind kwak Ventures. His family own 25% of the shares. Kwak Ventures also is supported by a few selected individuals from our personal and business environment. These investors have enjoyed very good profits over the last five years, averaging an approximate 27% return on investment per year.