In a recent Forbes.com article, Mediafly CFO John Evarts laid out how Mediafly has been able to grow rapidly through dynamic discounting with our Fortune-ranked customers. After speaking at the Dynamic Discounting and Supply Chain Financing Summit, John told writer Moira Vetter how Mediafly “tripped on a gold mine”:
“Like many selling services to large corporations, Mediafly was told one day that they needed to register with SAP Ariba to do business with their customer. […] As they input several invoices, Teddy, Mediafly’s controller said, ‘Look at this button. Click to get paid early.’ Hmmmmm. So they decided to test a small invoice. And presto…the money was in their account. Evarts and his financial team realized that if they could get immediate payment, they wouldn’t have to go the route of other hypergrowth companies. The road where the firm takes a VC round that is hugely dilutive to the owners, just to enable growth.”
Before this option, Mediafly had a slower growth cycle, having to wait for cash to add staff. With cash velocity vital to serving companies like MillerCoors and PepsiCo, the alternative capital allowed Mediafly to hold off on venture capital, while maintaining rapid growth.
How much growth? Vetter writes, “ SAP Ariba enables Evarts to factor 100% of the contract with none of the drawbacks. And Mediafly is growing at 1000%.” Click below to read the full story on Forbes.