In a recent DrivePoint Webinar titled “Working the Working Capital Game,” our CEO, Andrew Curtis, shared valuable insights on selecting the right working capital partner for your business. Joined by industry experts from Deep Ocean Partners, SVB, and Steel Capital Management, this webinar provided a wealth of knowledge for founders looking to navigate the complex landscape of working capital solutions.

Macro Trends in Working Capital: What Founders Need to Know

One of the key topics discussed was the evolving trends in capital markets. Venture equity remains a popular starting point for many founders, but it comes with the risk of losing control and ownership of their companies. Although high valuations might be tempting in the short term, they can limit future options and flexibility.

As venture capital (VC) investments retract, equity capital has become less accessible, opening the door for various working capital providers to step in. These providers offer tailored products that cater to companies at different growth stages, showing an evolution in the sophistication of working capital solutions available today.

How to Compare Working Capital Offers: Key Considerations

When it comes to evaluating working capital offers, founders should focus on four main areas: access, flexibility, scalability, and cost. Understanding which of these factors are most critical to your business will help you select the offer that best aligns with your objectives.

As a founder, it’s essential to clearly articulate how the funding will address specific challenges. By doing so, you enable lenders to propose solutions that are truly tailored to your needs, helping you make informed decisions.

‍

Building a Strategic Capital Stack for Business Growth

Another significant topic was the concept of building a capital stack. Different types of capital serve different purposes and each plays a crucial role in a well-structured growth strategy. For instance, Clearco supports customers with funding for marketing, inventory, and logistics, while the same business might require other types of funding for equipment investments.

Collaborating with multiple capital providers allows you to address various business needs more effectively. However, it’s important to be cautious of providers who are unwilling to collaborate with others, as relying solely on one lender can leave you in a vulnerable position.

Expert Advice for Founders on Managing Capital

The webinar concluded with some practical advice for founders:

1. Thoroughly understand any capital offer and its potential impact on your business. Cash flow modeling is essential and should be completed before accepting any funds from a lender.
2. Research your lender carefully and understand how they will respond if your business encounters challenges. A strong partner will maintain open and transparent communication, even during difficult times.
3. Don’t hesitate to say no to capital if it doesn’t align with your business needs. Having the right working capital is key to driving your business’s growth.

Watch the Full Webinar for More Insights!

Don’t miss out on the detailed discussion from our experts. Check out the full DrivePoint Webinar video below and get deeper insights into mastering the working capital game. 

‍

‍

Conclusion: Strategize Your Working Capital for Success

The world of working capital solutions is vast, but with the right strategy, founders can navigate it effectively. By doing thorough research, comparing offers, and choosing the right partners, your business can secure the support it needs to seize the next big opportunity.

Think your business might benefit from Clearco’s set of working capital solutions? 

Get Funded Now.