Rapidly growing marketing agency needed funds to support cash flow and agile business model, but wanted to avoid long-term operational debt of traditional business loan
Used Fundbox Credit to secure flexible funding quickly and easily, got a credit decision within minutes and access to funds the next business day, and pays back on a flexible schedule
Doubled business growth in two years, gained the flexibility to scale and hire account-based expertise as needed, and reduced cash flow issues while stabilizing business
Team Friday is a woman-owned, Los Angeles-based creative agency that provides brand strategy, experiential marketing, digital communications and campaigns for nonprofits, government, and philanthropic initiatives. Its social mission is focused on building purpose, furthering causes, and creating impact for clients including the City of Los Angeles and Inglewood Educational Foundation.
Being agile is key to the company’s success. With five full-time employees and a bench of contractors, president and CEO, Michelle O’Grady aims to balance the agency’s goal of providing impactful solutions while ensuring the health of the business, even as its client base grows.
Critical to this approach is having access to funds, as and when they are needed, without taking on long-term debt. For this O’Grady turned to Fundbox and doubled her business in two years.
Like many business owners, O’Grady bootstrapped her business using funds drawn from a savings account. As the company grew and the contracts became more complex, cash flow management proved to be a challenge. Landing large clients had the potential to bring in hundreds of thousands of dollars in revenue, however these organizations tend to have longer payment terms than the traditional Net-30, making cash flow less than certain.
At the same time, O’Grady needed access to working cash flow to hire additional help, including contractors, to create bandwidth to take on new accounts and to continue to expand the business. Because of their multi-year repayment terms, O’Grady didn’t want to carry the operational debt associated with a traditional small business loan. The agency also needed a solution that was flexible and agile – so that funds were there as needed to cover late invoice payments, payroll, expenses, and more.
Team Friday learned about Fundbox via our partner integration with QuickBooks and O’Grady was curious to know how we could help smooth out cash flow and support the growth of the business.
I stumbled on Fundbox and just applied. Within minutes I had a credit decision and funds were available as early as the next business day.
Michelle O’Grady, President and CEO, Team Friday
“In addition to the seamless application process, I love the flexibility and control it provides,” said O’Grady. “The funds are there whenever I need them. I only pay when I draw funds and pay back on a schedule that works for me, either 12 or 24 weeks – eliminating the burden of ongoing operational debt. As soon as I make a payment, my credit replenishes and there’s no penalty for paying back early. I also have complete visibility into my account status, so there are no surprises.”
The Fundbox Credit solution is different to other business loans and lines of credit because it removes the barriers surrounding traditional credit processes and offered Team Friday a streamlined way to fund its future. Fundbox is also seamless in design. Fees are clearly communicated ahead of time and payments are only made when funds are drawn.
Another bonus is Fundbox integrates with QuickBooks invoicing so that if a customer pays late, Team Friday can easily offset any delinquent payments with Fundbox credit.
Team Friday has used Fundbox for more than two years, during which time it has doubled its client base and revenue.
“Fundbox has been really crucial as we’ve shifted gears and built our new client base,” said O’Grady. “We’ve used Fundbox to grow headcount to fill in gaps in our expertise, expand the business, manage cash flow when a client pays late, and more. If we didn’t have Fundbox as a resource I don’t think we would have been able to expand the way we wanted to while staying true to our agile roots.”
And because she’s not burdened with worrying about cash flow, O’Grady has more time to focus on doing what Team Friday does best: “The level of foundational support that Fundbox gives us helps with all the things we need to do as a creative firm. I need to dream of ideas for clients. I don’t have time to worry about whether something is going to lapse, because we don’t have the cash flow. I look at Fundbox as a partner who helps us make sure that we’re stable.”