Today, Mediafly, Inc. and our COO/CFO John Evarts were highlighted in this Forbes post about innovative strategies employed by growing businesses. Excerpts are below.
In the past, companies operated under the mindset that if they kept their internal house in order, their business would run itself. They kept their costs and inventories low and squeezed their trading partners until it hurt. But those days are long gone. Perceptive executives have come to understand that in today’s global and connected economy, creating value and gaining advantage means embracing networks of people and coordinating their efforts to deliver business results faster.
Just as consumers tap into personal networks like Facebook, Twitter and Amazon.com to learn, share and shop better, innovative SMEs are with increasing frequency leveraging business networks to better manage their trading relationships and commerce activities.”
Mediafly, a Chicago-based startup that delivers a cloud-based platform and applications for content management and distribution on mobile devices to Fortune 500 companies, came to the same conclusion when seeking capital to sustain its rapid growth.
‘Even with strong revenue growth, when you haven’t been in business for a long period of time, you often won’t have a balance sheet or P&L that can be levered to get competitive rates from traditional financing sources,’ says John Evarts, the company’s Chief Operating Officer and Chief Financial Officer.
So when a major client asked Mediafly to participate in a dynamic discounting program, Evarts decided to take a chance. Offered through the Ariba Network, the program allows buyers to accelerate payments for approved invoices to key suppliers in return for discounts. Buyers earn an immediate return on their cash. And sellers gain increased visibility into future cash flows, certainty in payment timing and the ability to use cash sooner.
‘For a few basis points, we get quicker access to the capital we need to hire developers and get to the next set of features in our products, which accelerates revenue and ultimately generates cash,’ Evarts says.”
Read the full article at Forbes: http://onforb.es/SejJaE