An A&R guy wouldn't expect every demo he gets to sound like a polished professionally-made recording. POV the band, that's what counts.
No aspirant producer is going to launch a career in making pro CDs based on the results he gets with zero-budget gear, for sure, but that's a different consideration.
What's important is you should be able to hear what's being played, and the sound should at least "describe" what the band want to sound like. Also it should not be physically uncomfortable to listen to.
If an A&R guy likes the songwriting and gets the idea you're the kind of band he's looking for, then he'll want to see you play live, of course. You'll need to borrow/steal/rent better gear for that eventuality if and when it arrives.
Having heard some of the demos which got bands signed the production often does suck - but the performance and songwriting are a different matter, and as long as those can be clearly heard the demo fulfils it's function.
If anyone was ever expected to actually
pay to hear a recording I would agreed that higher standards would be called for. But that's not the kind of recording we're cosidering here.
I think I've said everything I want to on this. Repectfully, Mr Kingdom, I don't believe we'll see eye-to-eye on this. We've both made our positions clear, I'm happy to agree to differ, and if you think I'm just a twat that's fine by me also.
I'm off to get some stuff
done. Possibly badly - but as well as I can do nonetheless.