This digital media ad agency contracts directly with advertisers and larger agencies to provide native ad solutions to their clients. They have shown their approach and solution drives more effective brand awareness and social engagement than traditional display ad solutions. While the founders are digital media veterans, the company itself was less than one year old and while the founders had raised some seed capital, they were looking for a flexible way to get growth capital to drive their business without diluting themselves too early in their company’s life-cycle. The founders felt the various VC and private investors they had spoken to had wanted too much equity for the money they were providing. The company was able to use Nations Interbanc’s facility for a short term “bridge” period to grow their company and revenue in the near term, thereby diluting themselves less over the long term. They eventually conducted a series A funding round at what they believed was a good valuation.
This four year old Search Engine Optimization (SEO) and digital media agency works with many large companies in the pharmaceutical industry. Under long term contracts, they provide their customers with ongoing SEO services, plus they also build website properties and develop/execute display and mobile campaigns for their clients. Like many technology and consulting companies, they find themselves having to hire developers in advance of getting paid by their customers, so have an inherent cash flow challenge. Nations Interbanc provides financing up front for these projects, depending on how the contracts are structured, and allows our client to operate effectively without having to “float” the payroll cash flow needed for their project-oriented work.
This four year old IT infrastructure company provides real time replication and backup services to SMBs via a reseller network of IT consulting companies. They are a cloud-based, SaaS company who is paid on on a monthly basis via a recurring revenue stream from their customers. While they have 3 year contracts with their customers, they only get paid a fraction of the contract on a monthly basis. In need of cash flow to grow their business, Nations Interbanc was able to advance them a large percentage of their future monthly recurring revenue (MRR) to get them capital immediately, rather than having to wait to get this revenue in the future.
This two year old digital media ad network provides a programmatic content monetization platform that efficiently connects Advertisers and Publishers, allowing the parties to more effectively optimize content through advertising across mobile, display and video platforms and has been growing at a rate of 50-75% per year. The company was faced with the situation of having to pay publishers before getting paid by certain advertisers and agencies, which caused a large cash flow deficit on a monthly basis. With many invoices not being paid for 90 days or more, Nations Interbanc is able to help them solve their cash flow crunch by providing advance financing on a subset of their invoices, giving the company the capital they need to continue aggressively growing their business.
This ten year old engineering company provides outsourced engineering and manufacturing services to innovative technology and start-up companies. While they have millions of dollars worth of engineering projects in their pipeline, they faced a short term cash crunch to meet their current client delivery demands. Like many companies, they had gone through a difficult financial period during the economic downturn which had prevented them from qualifying for traditional bank credit facilities. With Nations Interbanc, they were able to get short term advances against certain invoices to help fund their cash flow needs, while at the same time, working to secure a more traditional bank line of credit.
This three year old agency provides a social media technology platform to initiate, track and report on campaigns across Twitter, Instagram and Pinterest, and is quickly expanding its reach to Facebook. They have great contracts and invoices with many of the larger “super” ad agencies and worldwide Brands, but are challenged because many of their invoices are not paid for 90-120 days. With Nations Interbanc, they get advances against certain invoices to help fund their cash flow needs, but only use the facility when the business needs dictate it.
This three year old digital media agency works with most of the large movie production companies, such as Disney, Warner Brothers and others to proactively promote upcoming movies over their proprietary Facebook properties. They overlay extensive data analytics with publically available data to target the right demographic for upcoming movies. Like most companies in the digital media space, they struggle at times because many of their invoices are not paid for 90-120 days, while they unfortunately have to front their Facebook spend on behalf of their clients. Nations Interbanc is a good solution for helping them solve this cash flow crunch as we provide advance financing on their invoices, allowing them to pay the Facebook expenses before they get reimbursed by their clients 90 days later.
This twenty plus year old company has successfully grown their business over the years. However, with a slowdown in the use of ATM machines due to a reduction on the need for consumers to carry cash, they found themselves in the position of having to reinvent themselves and their core product offerings. After re-investing heavily in the business and focusing on newer technologies and industry segments, they found themselves with revenue concentration issues on a few select customers, who unfortunately were “slow paying” the company and delaying payments by 60 days or more. After unsuccessfully trying to get a line of credit with a traditional Bank to support their growth plans, they turned to Nations Interbanc. Nations Interbanc was able to successfully support the company’s cash flow needs during a critical time in its business’ growth cycle.