My colleague, Chris Rauen, recently wrote about how working capital issues are going mainstream when extended payment terms became Comedy Central fodder on the Stephen Colbert Show. These issues are mainstream because small and medium size businesses are the heartbeat of mainstreet economies, and they are the businesses being squeezed by an ongoing tight credit market on the one side and larger customers who extend terms on the other side. As a result, many companies with good business models wanting to take on new business and grow, find themselves hard pressed to come up with the cash needed to fund new opportunities.
In fact, that is exactly the situation David Katz, owner of The Camera Company, found himself in. His company, specializing in photography retail stores as well as professional movie production support, has encountered many new opportunities lately that often require them to invest in specialized equipment in order to accept the business. The problem is that his current lines of credit are maxed out (a situation many growing comapnies find themselves in) while his banks are unwilling to expand them.
So in order not to miss out on a great opportunity to successfully grow his company, David turned to Ariba Receivables Financing (powered by The Receivables Exchange) to auction his approved receivables on the Ariba Network and get immediate cash to fund his business. It's a compelling portrait of small business challenges today and of the power of collaborative financial management on the Ariba Network to help small businesses succeed.
To hear David tell his story, please click here for a the recording of the webinar we held last week with David.
To find out more about Ariba Receivables Fianancing, please visit our informational page at Ariba.com