Source: Chris Mitchell, Hitachi Business Finance How is an asset-based loan structured? What are common asset based lending terms? The question can arise from business owners and lenders alike. Let’s take a look at common structure expectations. It is widely believed to expect 80-90% of accounts receivable (A/R) and 50% of inventory, but that could […]
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Source: BizActions Credit sales are a fact of business life. And to keep those accounts from spinning out of control, your company must maintain a delicate balance between the total cost of bad debts and your profit gains. Your cash manager needs to constantly monitor your total receivables and bad debts. Part of the process
Tracking Key Cash Collections Metrics Read More »
Source: Bizactions A recent U.S. Tax Court decision drives home the important point that current deductions aren’t allowed for most expenses incurred while a new business is still in the start-up phase. Other decisions have dealt with the same issue in recent years. So, the proper federal income tax treatment of start-up expenses remains an
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Source: Amy Smith Although most tax professionals and software companies would like to see one uniform methodology applied to the treatment of software for sales tax purposes, the states continue to present challenges to compliance for sellers of software and software as a service. More states are aggressively pursuing audits of software companies to address
Revisiting Sales Tax on Software Read More »
Source: Ami Kassar, Multifunding Purchase order financing, or P.O. financing as some may know it, is a no-interest, short-term finance arrangement in which a lender provides capital to businesses that need immediate working capital to fulfill single or multiple customer purchase orders, usually from large national retailers or government agencies. As a small business owner,
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Many workplace crimes are “inside jobs.” They can involve employees stealing cash, inventory, equipment or intellectual property. Or they could include more sophisticated schemes such as bribery, kickbacks or payroll fraud. Internal fraud investigations can pose numerous challenges. Here are six costly mistakes an organization can make when faced with the possibility that one of
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Source: BusinessCollective When you are taking on funding or expanding your businesses, and looking to add a CFO, but may only need one part-time, what are the traits that you need to focus on. We asked nine entrepreneurs what they look for in a part-time CFO? Financial Modeling Experience The CFO should have strong financial
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Source: Mason Myers, Greybull Stewardship One of the most important steps of selling a business is when a buyer performs a “Quality of Earnings” review of the seller’s financial statements. The idea is that the buyer will verify the earnings of the underlying business and any “add backs” that the seller added to the earnings
Quality of Earnings: A Critical Component of Due Diligence Read More »
Source: Dan Doran, Quantive Business Valuations It’s a logical question from business owners: how long is a valuation good for? The short answer: probably for about a year. The longer answer: it depends. Context is critical According to the professionals from pmi-fr.org, business valuations are always completed for 1) a particular purpose and 2) at
Business Valuations – How Long Until Expiration? Read More »
Source: Hunter Witherington, SSM Partners As SaaS investors, we are often asked by entrepreneurs and others what we think the most important metric is for a SaaS business and what we focus on the most when we evaluate a SaaS company as an investment opportunity. While there is no one single metric that provides a
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Graf Research™ unleashes innovation by developing ideas into disruptive technologies. The Graf mission aims to perform research, provide services, apply analytics, and create products that enable secure, high-performance, embedded, and adaptive computing solutions.
When the Director of Finance for Graf was leaving the company, Graf needed an experienced financial team to get them through the transition. Managing Director Gary Hayes was introduced to Graf and determined that CFO Rendy Richards and Controller John Schefke would be an ideal combination. These two were particularly important because Graf is a U.S. Government contractor, and both Richards and Schefke have strong backgrounds and deep skill sets in this industry.
The two Scale Finance professionals quickly responded to Graf’s time-sensitive need, logically split up the work, learned the DELTEK version used by Graf, introduced more efficient processes and techniques, and helped meet their financial reporting needs. Our professionals also determined that the Senior Staff Accountant was underutilized and helped her grow into a permanent, cost-effective Controller role.
FX HedgePool (FXHP)
FX HedgePool (FXHP) is a New York and London-based highly innovative fintech company. FXHP is an award-winning peer-to-peer matching platform that optimizes the FX swaps market. The Company eliminates market impact and minimizes the effects of volatility – significantly improving outcomes for all investors.
FXHP’s unique credit model separates liquidity from credit, creating a new source of safe and dependable liquidity for the swaps market. The Company exists for the community, guided by the community with a “win-win-win” commitment that helps members, underlying investors, and banks yield safer and better results.
Scale Finance began serving FXHP years ago, providing annual business valuations to support 409A compliance for the Company’s management incentive equity plan. During this period, Scale Finance Managing Director Dave Gilroy advised FXHP about potential strategic corporate transactions. In 2022, the Company decided to raise institutional venture capital. Scale Finance managed this process from end to end, resulting in a highly successful closing of an $8 million Series A equity financing led by Information Venture Partners with participation from Fidelity International Strategic Ventures and NAventures (National Bank of Canada’s corporate venture capital arm).
Scale Finance continues to provide periodic business valuation support.
Heritage Trust
As the first independent trust company in New Mexico, established in 1994, Heritage Trust (HT) uses innovation, experience, and flexibility to meet clients’ needs. HT provides a full range of trust services, e.g., acting as their client fiduciary for their Trust assets, being an executor or personal representative related to the distribution of estate assets, managing and growing financial assets, and preparing annual tax returns for trusted clients.
Co-Founder and Managing Director of Scale Finance Gary Hayes has been providing CFO and managing Controller support since February 2021. We have streamlined their monthly and year-end close process and established budget/forecast capability to support management. Their business has grown over 40% since Scale Finance has been involved with the company’s financial management. Gary has also participated in Board Meetings as and when needed.
Southland Transportation Company
Southland Transportation provides transport, supply chain, and campus management services on a local, regional, and nationwide basis. When Southland contacted Scale Finance, they had a strong accounting staff but no Controller or CFO. After an unsuccessful search for a full-time CFO, Southland engaged CFO and Partner Rendy Richards as their fractional CFO.
Over 18 months, Richards helped integrate a new acquisition, made improvements in accounting and finance processes, developed the company’s first-ever annual budget, helped with the onboarding of a new Controller, and provided business valuations in conjunction with Scale Finance’s Managing Director, Dave Gilroy.
For over six decades, Cooper Electrical has served a wide range of industrial, commercial, and municipal customers across the Southeast, providing best-in-class Electrical Design/Build, BIM, Prefabrication, Instrumentation & Controls, and Calibration services. Cooper’s expertise spans multiple major markets, including bio-pharmaceutical, chemical, water & wastewater, power generation, manufacturing, gas production & transmission, and food & beverage.
When Cooper’s CFO left the company for another opportunity, the owners engaged Rendy Richards as interim CFO while they searched for a full-time replacement. On a half-time basis over eight months, Richards kept the company’s financial organization humming, made improvements in several business processes, initiated a detailed financial forecast, and met with the owners to share his observations and recommendations on the most feasible way to staff their finance and accounting department cost-effectively.
SymmetryRX, LLC
SymmetryRX is a leading provider of eSampling services allowing Pharma Manufacturing companies to access physician practices for the ordering and distribution of drug samples across the US. The Company was acquired in November 2018 from Aptus Health, a wholly-owned subsidiary of Merck. Since then, the company has expanded its robust suite of services that provides pharma manufacturing executives, brand managers, sales managers, product managers, and launch managers the ability to help more patients have greater access to samples, improving medication adherence and healthcare outcomes.
Co-Founder and Managing Director of Scale Finance Gary Hayes has been providing CFO Services to the Company since 2018 and was integral in the acquisition process, facilitated initial financing to support the company with a 7A SBA loan package of $600 thousand and an SBA-backed $300 thousand LOC. Since then, Gary has been actively providing CFO support across financial reporting, budgeting, forecasting, cash planning, and strategic planning.
