Why this prospective client sought out Sand Hill Finance:
Our client was an 8-year-old software company selling to large utility companies. The company was venture-capital backed, had $10mm in annual revenues and was not profitable.
Sand Hill’s solution for this client:
Aside from falling out of compliance with its bank, the company needed an Accounts Receivables (A/R) credit facility that would allow for the financing of software maintenance receivables. We were able to structure a $600,000 A/R Facility, completing all due diligence and documentation in less than one week.
The company was subsequently acquired by a public company at a substantial multiple.
Our solution enabled this company to:
- Exit their prior banking relationship with ease
- Finance software maintenance receivables
- Continue to grow without the need for additional equity, thus avoiding further dilution.
Case Study #2 – When cash flow in is not keeping ahead of demand.
Why this prospective client sought out Sand Hill Finance:
This 3-year-old venture-backed network security company was selling to a large, international telecommunications company. The company had a large demand for their orders, but needed to enhance cash flow to keep up with demand.
Sand Hill’s solution for this client:
We structured and documented an Accounts Receivables (A/R) facility to finance internationally with China in 2 days.
Our solution enabled this company to:
- Meet delivery schedules
- Pay suppliers at a discount
- Delay an equity round.
Case Study #3 – When seasonal sales interrupt consistent cash flow.
Why this prospective client sought out Sand Hill Finance:
This 6-year-old company provides web presentation solutions to companies across multiple industries to increase intra-office communications and provide rich media for prospecting needs. Despite the various industries, orders and activity would increase – and decrease – seasonally, thereby causing inconsistent cash flow.
Sand Hill’s solution for this client:
To create immediate consistency in cash flow, we structured an Accounts Receivables (A/R) facility in a week’s time that allowed greater flexibility in borrowing as demand ebbed and flowed.
Our solution enabled this company to:
- Continue its fast-track software development, regardless of seasonal orders
- Rely on borrowing flexibility instead of haggling over changes within a more traditional and limited borrowing structure
- More easily budget and set projections throughout the year.
Case Study #4 – When your aggressive growth plans can’t be put into motion because of uneven cash flow.
Why this prospective client sought out Sand Hill Finance:
With its focus on animated, 3-dimensional software solutions for virtual product demonstrations, this 10-year old company was poised for its next launch into growth, but didn’t have the consistent cash flow to create that launching pad. More traditional financial institutions only seemed to offer complexity and restriction to further frustrate its executives.
Sand Hill’s solution for this client:
Rather than focusing on what we needed from the relationship, we focused on what this client needed. Once we understood the existing business, its financial ebb and flow, and its detailed plan for growth, we were able to structure a bridge loan and a A/R facility that offered much greater flexibility and faster responsiveness to the client’s requests for change.
Our solution enabled this company to:
- Launch its second-phase business growth plan immediately, thereby dramatically increasing cash inflow
- Rely on the ability to make nearly-immediate increases in its credit line.
Case Study #5 – When you’re tired of just being a number.
Why this prospective client sought out Sand Hill Finance:
In a substantial growth spurt, this 10-year-old software company was looking to raise additional capital without having to pay the high equity price. The company also noted that it had worked with other institutions and was weary of being what they referred to as “a number.”
Sand Hill’s solution for this client:
At Sand Hill, the financing of small to medium-sized companies is the easy part. It’s the personal and professional mesh with the client that is most important. As we do with all our clients, we met with this company’s key players at length to learn the ins and outs of the company. The mesh was a good one and their enthusiasm was engaging. Two days later, they had their funding.
Our solution enabled this company to:
- Provide short-term capital whenever necessary to bridge the gap in development and client service
- Expand its marketing efforts and sales department for greater success.
- Utilize valuable resources and referrals we suggested to help in other areas of their company.
Case Study #6 – When the only definition you have for your receivables is “lumpy.”
Why this prospective client sought out Sand Hill Finance:
This young company has a quickly growing niche market of litigators and trial lawyers who were seeking interactive multi-media and software-based visual design for the courtroom. Sales and collections varied substantially from month to month to the point where it seemed they were spending more time adjusting monthly budgets than moving forward to meet growing demand.
Sand Hill’s solution for this client:
At Sand Hill, we know half the mental battle is the expected long meetings with bankers who often have such stringent limitations, restrictions and reams of protective paperwork that it might seem easier to just fund the company from your personal pocketbook. For this client (as with all our clients), we met with them to truly understand their business, built latitude into their A/R line of credit with us based on that understanding and expected lumpiness, and presented a condensed, easy-to-read agreement, all in a matter of days.
Our solution enabled this company to:
- Continue on track in development and production despite uneven cash flow
- With that addressed, they were able to address the lumpiness issue, thus smoothing finances from month to month
- Easily increase their credit facility as their business plan rolled forward on schedule.
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