Mediafly, a 22-person start-up based in Chicago, sells on-demand software and apps to some of the biggest companies in the United States. Its customers typically pay yearly subscriptions, which means each invoice is a substantive amount of money—upwards of $100,000. But those payments don’t get filled immediately (some take as long as 60 days), which can be a significant pain point to the company’s cash flow, especially as the company scales.
But Mediafly’s CEO, Carson Conant, has found a solution. Rather than take on venture capital to stabilize the company’s cash flow, he decided to sign up with Ariba, an online invoicing firm that offers dynamic discounting—a service that has existed for years, but made much easier by smart use of the Web.
“Accelerating cash collection allows us to invest earlier in innovative new features,” says Conant. “New features allow us to attract new customers faster, outpace competitors and expand [services] within current customers faster.” Last year, the company grew about 300 percent, and expects similar growth for 2012…
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