In a recent interview, Mediafly’s CFO, Johnathan Evarts discussed how revenue has grown 1,000 percent since 2010. By utilizing payments of their buyers for financing, Mediafly has been able to focus on development and expansion with help from Ariba, which would have been otherwise difficult without seeking venture capital or bank financing.
Mediafly is not alone in their approach to financing the business. Many companies in fact are turning to alternative forms of capital investment, especially when accessing funds are often more difficult than by traditional means. As Evarts states, supplier financing “can accelerate our innovation and is faster and less expensive than bank or investor financing.”
Buying organizations as well have incentives for helping their valued suppliers. With global supply chain complexities, investing in partnerships that have significant value to the overall business is critical. In addition, these companies can realize significant benefits of this sort of risk-free investment by earning greater yield on their cash….
An item of particular focus for any finance executive.