Service Type: CFO Services
Project: Working Capital Strategy
A profitable twenty-year-old business with $30M in annual revenue did not have the ability to provide monthly financial results to demonstrate its profitability. As a result, it could not qualify for a traditional working capital facility. Rather, the company relied upon expensive invoice factoring to provide working capital.
Approach & Results:
Approach: We developed a process to generate monthly financial statements for the business and used the information to communicate the financial position of the business to potential lenders.
Results: The business received two term sheets from national banks for a traditional line of credit replacing their invoice factoring facility. We are currently selecting, designing, and implementing a new ERP system for the business. Additionally, we are implementing a financial planning and analysis function at the company to perform budgeting, forecasting, and analysis to support major corporate decisions of the CEO.