How Muscle Squad pulls consistent gains from unpredictable cash flow

The push / pull to buy and sell on his own terms

Chris Billingham started Muscle Squad as a side project while working as an e-commerce strategy consultant for private equity firms. 

His background was in sourcing fitness equipment at Argos, and eventually the itch to buy and sell on his own terms got too strong. Chris was going to sell gym equipment to Personal Trainers and home gyms his way.

"One day I just handed in my notice and went for it," he says.

COVID accelerated things, as demand for home gyms spiked. Thanks to Chris’ online sales experience, Muscle Squad already had strong marketing systems in place.

Once volume arrived, Muscle Squad took off. But as the product range evolved from basic kettlebells into high-end functional trainers (machines that hit every body part), Chris’ cash flow dynamics shifted.

From dumbbells to smart cable machines

Muscle Squad isn't your typical e-commerce business. Customers can spend between £2,000 and £6,000 in a single transaction. The products take 60 to 90 days to manufacture and another 45 days to ship. At any given point, Chris has around half a million pounds tied up in inventory.

“These are low-volume, high-value products,” Chris explains. “They can sit in the showroom longer, and that ties up more capital.”

That means Muscle Squad’s cash flow often moves in big, uneven waves. February might be the quietest month one year and the strongest the next. This makes it hard for Chris to predict when customers will or won’t be in a buying mood.

Chris needed funding that could move with the rhythm of his business. His accountant pointed him to iwoca, and the flexibility made it stick.

An overdraft that flexes with the business

iwoca helped fund that expansion without outside equity. Chris could put deposits down on new product lines, confident that the sales would come.

Chris uses iwoca’s flexible repayments like a facility he can draw down and pay back in rhythm with his sales cycle,  without paying interest on the cash he doesn’t use. 

His suppliers need deposits upfront, and stock needs replacing before the last unit sells. But Chris knows quiet months don't mean the pipeline has dried up. 

"We go through waves of borrowing a significant amount and paying back a significant amount. You need the conviction that a good period is only around the corner."

For a growing business that's largely self-funded, speed and flexibility are what matter. 

"I can make a request and it's in the bank within 30 seconds. Then we're deploying that cash where we need to, straight away."

Conviction backed by numbers (and his team)

Chris trusts his people and pipeline. His team tracks quotes going out, pipeline conversations, and CRM sentiment. They quantify the pipeline from a numbers perspective, but also trust the vibes from the sales team. 

When the pipeline isn’t as full as he’d like, iwoca lets him act on what the data tells him, rather than pulling back because cash is sitting in a warehouse.

Their sales approach matches the product. “We don’t hard sell,” explains Chris. “We let the customer talk about how they train, what they want to achieve, and then fit them to the right equipment.” It's staff-intensive and relationship-driven.

"We’re in the customer acquisition game. They'll spend £2,000 to £6,000 with us. There is repeat purchase, but it's someone adding a couple of extra dumbbells or change plates. We always need new customers."

Chasing bigger gains in Europe

Muscle Squad is based in Milton Keynes, but their appeal stretches beyond the UK. “We keep getting requests from gyms in Europe,” Chris says. 

“There are so many more people who we can help become stronger, fitter, and healthier. And it's important we give them the tools to do that.” 

Muscle Squad has also launched a training app that helps customers get the most from their equipment in the long term. “I’m quite an analytical and process-driven person,” Chris adds. 

“This app will help people stay accountable and track their progress as they grow. We’re just getting started.”

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