Every organization can benefit from great marketing services, but some very worthy ones don’t always have the means. As the founder of Strider, an online marketing and SEO agency, Ryan Freeman knew consistent cash flow was crucial to his operation’s success. However, as an agency serving primarily nonprofits and seasonal businesses, managing his own cash flow was an ongoing challenge.
“[Our clients] have seasons where they are flush and seasons that are lean. That means invoices don’t always get paid on time,” Ryan said. To maintain operations without imposing strict payment terms on clients, Ryan needed a flexible credit solution, so he turned to Fundbox. Here’s how we helped.
Supporting clients who have restricted cash
Strider is an online marketing agency that works with small businesses and charitable organizations to manage their websites, grow their audiences, and develop effective marketing strategies. Strider provides web design, SEO, online advertising, and social media marketing services to clients in the U.S., Canada, the UK, the Caribbean, South America, and Australia.
Their goal is to help fill in the marketing gaps for small businesses and organizations that may not be able to afford full-time in-house marketing or web management teams. Most of Strider’s team are current or former small business owners themselves, so they understand the unique pain points and cash flow constraints that their clients face.
“If a client is taking a while to pay us, that limits our ability to pay for what we need to do. Things like staffing and investment in development and resources,” Ryan said.
The reduced cash flow from late payments limited the number of additional projects and new clients the team could comfortably take on. “We would have to pass up on some opportunities,” said Ryan. “Because if an opportunity comes along that requires a financial commitment, and I can’t be certain that steady client payments are going to be covering that commitment, then we need to pass that up, or cap our development or internal investments month to month.”
As a result, Strider’s growth and revenue potential were restricted. To ensure they could continue to pay for operational expenses and invest in long-term growth, they needed quick and flexible short-term funding without taking on long-term debt.
A line of credit comes to the rescue
Ryan learned about Fundbox through a partner integration with their accounting software, QuickBooks. Curious about how Fundbox could help his agency achieve better cash flow stability, Ryan decided to apply for a Fundbox business line of credit.
“I signed up right away because it seemed like a great idea. The approval process was very easy,” Ryan said.
Ryan found the entire process to be straightforward and seamless. Once Strider was approved, Fundbox was able to access pending invoices. “The system immediately started pulling in our existing invoices, giving us the options to draw funds against those. The repayment terms were very clear and very easy to understand, and direct deposit funds from our advance came in the next day,” Ryan said. “Even if it’s an immediate need that comes up, you can be sure those funds are going to arrive promptly.”
Fundbox helps remove traditional obstacles to business funding, like a rigorous application process and lengthy wait time. With a Fundbox line of credit, you can expect a credit decision in minutes and access to funds as soon as the next business day.
Credit helped cover investments that grew business
Strider has used Fundbox for more than six years, during which time they’ve expanded their services, grown their client base, and taken on a higher volume of work.
With consistent cash flow, Ryan and his team have been able to execute projects that demand a larger budget. “We can be much more confident in tackling new opportunities as they come along, knowing that we’ve got the bandwidth and the stable cash flow that’s required for better staffing levels,” he said.
They hired a full-time project manager and business development director, as well as additional support in the form of contractors. “More efficient project management translates into faster projects and happier clients, so a better all-around experience for everybody,” said Ryan.
Working with Fundbox has created a positive ripple effect. Ryan notes that stable operations help streamline administrative work and lower overhead costs, freeing up Strider employees to dedicate their energy to serving clients. “For [our] smaller clients, it’s a bigger risk anytime they’re taking on a new marketing venture,” said Ryan. “We want to make sure that we’re delivering the best value possible with an understanding that we’ve lived in that space.”