In January, The William Stanley CFO Group met with a prospective client who was on the edge of chaos and losing sleep. Despite his business growing organically by 50% year over year for the last five years, his cash was tight. This tightness was due to the cash float growing with his business, creating a gap that needed bridging with a working capital line of credit (LOC).

The client had recently renewed his line of credit with his bank, which had increased it from $1M to $1.5M. However, his business required a $4M LOC to truly support its growth. The problem was, he didn’t know how much he needed, so he accepted the $1.5M without realizing it was insufficient.

When The William Stanley CFO Group partnered with the client in February, the first step was to dig in and understand the business's financial needs. By thoroughly analyzing his cash flow, operational requirements, and growth projections, we were able to determine that the business indeed needed a $4M LOC to bridge the cash gap effectively.

Working with a philosophically aligned company that believed in the client and could support both his financing and technology needs was incredibly important. This alignment ensured that we were not only securing the right financial terms but also partnering with an institution that understood and supported the client's business vision and operational strategy.

The William Stanley CFO Group facilitated a Request for Proposal (RFP) process, comparing five different financing options from various financial institutions. One of the biggest deciding factors was securing a line size that accurately met the client's needs. This process ensured we could evaluate and select the best possible terms for the client’s needs. The evaluation criteria included:

• Cost to Close: Ensuring that the initial fees and closing costs were reasonable and manageable, avoiding excessive upfront expenses.
• Interest Rates: Securing a competitive interest rate to minimize the ongoing cost of borrowing, ensuring affordability over the life of the loan.
• Financial Covenants: Negotiating less stringent covenants to provide more flexibility in managing finances, allowing the business to operate without restrictive conditions.
• Support for Technology Needs: Partnering with a financial institution that could also support the client's technological advancements, integrating financial solutions with the latest technology for efficiency and growth.

Relentless negotiation was key to securing a right-sized line of credit. The William Stanley CFO Group advocated fiercely on behalf of the client, ensuring that the financial institutions understood the true value and potential of his business. Our efforts resulted in securing a $4M LOC with favorable terms, positioning the client for sustained growth and success.

With the right-sized line of credit, the client is now positioned for growth without being limited by an improperly sized LOC. This has provided him with the financial stability and confidence needed to continue expanding his business.

This case study highlights the critical importance of having a financial partner who truly understands your business and can advocate effectively on your behalf. Here’s why:

• Accurate Needs Assessment: A knowledgeable partner can accurately assess your financial needs, ensuring you secure the right amount of funding.
• Market Comparison: They can facilitate a comprehensive RFP process, comparing multiple options to find the best terms.
• Expert Negotiation: Experienced partners have the negotiation skills to secure better rates, terms, and covenants.
• Strategic Positioning: They can help position your business for future growth, ensuring that financial limitations don’t hinder your progress.
• Philosophical Alignment: Working with partners who share your vision and can support your financing and technological needs creates a cohesive and supportive relationship that fosters long-term success.

Without the right financial partner, businesses might settle for inadequate funding that doesn’t truly meet their needs. By partnering with an experienced financial strategist, you can ensure that your business receives the support it deserves, based on its performance and potential. This not only helps bridge immediate gaps but also positions your business for long-term success.

Advocacy + Expertise = Best Possible Outcomes

Every time.