A growing SaaS company was delivering strong value to its customers but lacked the financial discipline, financial visibility, and controls necessary to support sustainable growth. Poor cash flow management and a high-cost credit facility were limiting operational flexibility and putting unnecessary strain on the business.
The Challenge
- The company only had a part-time bookkeeper with no strategic finance leadership.
- No company budgets or forecasting process.
- Poor accounts receivable (AR) management — no follow-up with customers; AR days exceeded 250.
- No formal financial controls or consistent performance tracking.
- $250K line of credit at Prime + 3%, personally guaranteed by the owners.
Our Approach
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Strengthened Finance Leadership
- Hired a Head of Finance & Accounting to take full ownership of financial management and reporting.
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Tightened Accounts Receivable
- Installed a proactive AR process with aging reports for 30, 60, 90, and 90+ days.
- Created accountability for customer follow-up to accelerate payment collection.
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Implemented Budgeting Discipline
- Launched an annual budgeting process that engaged Sales and all functional leaders.
- Required justification for all planned expenditures, ensuring strategic priorities outweighed “pet projects.”
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Leveraged Trailing 12-Month (TTM) Tracking
- Began tracking Sales, Gross Profit, and Operating Profit using TTM charts to:
- Smooth seasonal fluctuations.
- Provide a clear, up-to-date view of true performance.
- Highlight trends and momentum in real time for better decision-making.
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Forecasted with Precision
- Built a forward-looking rolling 12-month cash flow forecast, integrating both the income statement and balance sheet.
- Enabled leadership to make confident investment and financing decisions.
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Improved Capital Structure
- Used improved financial visibility and discipline to refinance the line of credit.
The Results
- AR days reduced from 250+ to just 45 days.
- Budgeting process improved strategic planning and capital allocation.
- TTM tracking provided accurate insight into the company’s financial operating trajectory.
- Rolling 12-month cash flow forecast strengthened decision-making and lender confidence.
- Secured a new $1.5M revolving line of credit at Prime – 0.5%, with no personal guarantees.
Outcome: By instilling financial discipline, implementing TTM performance tracking, and building forward-looking visibility, the company gained full control of its finances, unlocked growth capital, and removed personal risk from ownership.
Ready to Get Control of Your Numbers?
If your business lacks financial visibility and control, Elevanta.AI can help you install the systems, processes, and leadership you need. Let’s talk about how to turn your finances into a growth engine.