Business Finance Basics

Controllership is the boring role in finance. I have seen many narratives being played out stating FP&A is better and Controllership is boring. I would like to make a point here. No doubt FP&A is more dynamic and more exciting being in the middle of business decision making, however I would also like to mention that comparing Accounting/Controllership with FP&A is not a right comparison. Its like comparing the foundation of a building with the balcony view. One holds the weight. The other gets the attention. FP&A shines when the data is clean, timely and accurate. But where does that come from? It comes from the teams that close books, reconcile accounts, manage audits and ensure compliance month after month, year after year. Controllership may not always look glamorous, but it’s the function that ensures the numbers actually mean something. So while FP&A builds the future, Controllership protects the present. Both are critical. Let’s not call one boring just because it’s not on stage. #Controllership #Accounting

Everyone wants to do “strategic finance.” Nobody wants to do the boring stuff. When we were hiring recently, almost every junior candidate said the same thing: “I want to do FP&A. I want to work on the strategic side.” But when I asked about their financial experience, P&Ls, journal entries, revenue recognition, the answers were… sparse. Strategy sounds cool. But you don’t earn that seat without the fundamentals. Every successful person I know in finance started in the weeds: • Book entries • Depreciation schedules • Manual reconciliations • Endless Excel sheets It’s not sexy. It’s not fun. But it teaches you how a business actually runs. You spot revenue leaks. You catch inefficiencies. You become the first line of defence when things don’t look right. Ted Sherrington-Boyd (our Group FC) said it best: “Sometimes controllership is about lifting the spirits. A quick feedback loop supports positive reinforcement and empowers those to continue going strong.” And this isn’t just about finance: In HR? Onboarding forms and visa paperwork. In marketing? Resizing posts and tagging channels. In ops? Inventory logs and system updates. If you’re early in your career, especially in finance, take the 3–4 years of boring. It builds the judgment you’ll use for decades. This isn’t a “Gen Z are lazy” rant. It’s a reminder that real experience compounds, but only if you earn it.

Controller is the hardest job in finance. It's not just process. It’s process lived day after day, month after month. The stakes are enormous. Accurate financials are no joke. And companies evolve. Which means processes break. Whatever you created six months ago won’t survive unchanged. That’s why waiting for problems to appear is so expensive. The best controllers don’t just follow checklists. → They anticipate problems. → They know growth breaks systems. → They assume exceptions will happen. Think about it. A new vendor. A new product. A new billing model. Every one of those changes stresses the system. So a great controller double-checks invoices line by line. Sales tax applied correctly? Duplicate invoices avoided? Vendors billing what you actually use? Behind every “books closed on time” is that invisible work. Here’s the paradox. Controllers are judged on precision—clean books, delivered fast. But the real job is managing ambiguity. The gray areas where growth makes things messy. And anticipation? That comes only from pattern recognition. From having lived through processes breaking again and again. The best controllers combine opposites:
• Comfortable with manual work, yet finding ways to automate • Disciplined in process, yet adaptable to chaos • Strong individual performers, yet strong communicators across teams That combination is rare. A strong controller may be the hardest finance hire. They are essential. Because without them, every other finance team stands on shaky ground.

Have you been wondering (like me) where the budding distress in commercial real estate is translating into discounted transactions? Banks and other lenders are beginning to sell loans tied to commercial property assets in order to minimize their exposure to the real estate sector and raise cash. Recent deals include the sale in January of a $401 million bundle of loans tied to Houston apartment buildings for $370 million (a 7% discount) by Amerant Bank. CIBC has also just hired CBRE to market a $316 million package of office loans in the US. Experts expect more of these transactions as the commercial real estate market faces a huge oncoming wave of debt maturities. JLL says that $2.1 trillion of commercial property debt will expire between now and the end of 2025 in the US and that $265 billion of equity will likely be necessary to refinance those loans. Not every landlord is going to pour in the additional cash to hold onto properties and distress will pick up. Fitch Ratings predicts that office defaults in the securitized debt market, for instance, will rise to 9.9% by the end of 2025 - that's higher than the 8.5% default rate during the great financial crisis. Most lenders don't want to take over property assets, according to Bliss Morris, a loan sale advisor, because of the large costs of operating those properties, including insurance and maintenance. "The bankers that we talk to today would just as soon exit the loan on as high a value note as they can versus getting into a long-term, drawn out foreclosure," she said. By selling loans today, lenders can offload debts before problems materialize and recoup more value. William "David" Tobin, another loan sale advisor, said that his group tracked $15 billion of loan sales in 2023 and expects a similar volume to trade in 2024. Read the full story at Business Insider: https://lnkd.in/dGWcZtPi #commercialrealestate #distresseddebt #banking

Just how are payment solutions offering working capital to B2B buyers and suppliers? As a follow up to my post last week, let’s dig in on the various offerings in the market today. There has been an explosion of fintech lending because large banks and community banks often underserve SMBs due to high onboarding friction and risk adverse underwriting (See data in the comments). 💳 Payment Processors (e.g., Stripe, Square, PayPal) Target: Mostly sellers, especially SMBs and micro-merchants Products Offered: ☑️ Instant Payouts (within minutes) ☑️ Merchant Cash Advances (MCAs) ☑️ Working Capital Loans (via partners or balance sheet) Typical Loan Size: ☑️ $500 to $250,000 ☑️ Repayment often tied to % of daily sales Cost Structure: ☑️ Flat fees or fixed % (6%–15%++) ☑️ Instant payouts: 1.5%–1.75% per transaction Risk Profile: ☑️ Medium-high—based on sales volatility and limited financial history. ☑️ Automated underwriting minimizes cost but increases exposure. Market Growth: ☑️ High—massive growth driven by embedded finance and cash flow demand from digital SMBs. 🧾 AP Automation / Procurement Platforms (e.g., Coupa, Tipalti, Ariba/Taulia) Target: Primarily buyers, with optional supplier participation Products Offered: ☑️ Dynamic Discounting (self-funded) ☑️ Supply Chain Finance (bank/fintech-funded) ☑️ Invoice approval + embedded lending Typical Loan Size: ☑️ Buyer-funded discounting: unlimited (cash on balance sheet) ☑️ Supply Chain Financing via partner: $250K–$5M+ depending on buyer size Cost Structure: ☑️ Discount rate on early payment (1%–3% typical) ☑️ Often rev share with funding partners Risk Profile: ☑️ Low for platforms (not balance sheet lenders) ☑️ Buyer risk if self-funded; financier risk otherwise Market Growth: ☑️ Accelerating, especially as treasury teams get pressure to optimize cash yield and procurement teams seek smoother, more reliable supplier relationships 🧩 Vertical SaaS & Marketplaces (e.g., Shopify Capital, Toast Capital, Faire, Mindbody) Target: Generally sellers, though some also extend buyer credit. Products Offered: ☑️ Embedded BNPL for B2B ☑️ Invoice Factoring ☑️ Revenue-Based Financing Typical Loan Size: ☑️ $5K–$500K ☑️ Often underwritten using real-time platform activity Cost: ☑️ Flat fees, take rates, or tiered rates (~8%–20%+ depending on model and term) Risk Profile: ☑️ High volatility but offset by strong real-time data signals ☑️ Tends to outperform traditional SMB lending in default predictability Market Growth: ☑️ Explosive—driven by embedded finance in vertical SaaS. ☑️ Lower CAC due to captive customer base. Software platforms don’t have to build these capabilities themselves, nor do they need to extend funding from their own balance sheet. As with embedding payments, there are partners that SaaS can rely on to get started, such as Pipe, Kanmon, OatFi and, of course, Stripe Embedded Finance and Adyen Capital. Shout out to Michael Barbosa, Luke Voiles, and Jon Lear

This startup burned through 2 CFOs in 18 months. Until one Controller saved them from financial disaster. His secret? Getting his hands dirty. Last quarter, I worked with a startup that had burned through two CFOs in 18 months. Their mistake? They kept hiring strategic finance leaders who couldn't (or wouldn't) roll up their sleeves and do the tactical work. As a growing startup with limited headcount, they needed something different: Someone who could present to the board in the morning and troubleshoot an AP issue in the afternoon. The unicorn who could build financial models for investors while also ensuring day-to-day operations ran smoothly. After an extensive search, we found the perfect fit - a Controller who wasn't just technically skilled but was also willing to get their hands dirty. This Controller transformed their finance function by: > Building investor-ready financial reports that secured their next funding round. > Implementing scalable systems to replace their patchwork solutions. > Mentoring junior staff instead of requesting additional headcount. Ultimately, he saved the startup from financial disaster. What made this placement successful wasn't just his technical expertise - it was his mindset. In early-stage companies, the line between strategic and tactical work is often blurry. The best finance leaders understand this reality. > They know when to delegate and when to dive in. > They balance big-picture thinking with attention to detail. > They're equally comfortable with CEOs and staff accountants. These versatile Controllers are worth their weight in gold to growing companies. Their technical skills get them in the door. Their adaptability makes them indispensable.

In conversations with business owners, it has come to my attention that while cash flow gaps remain the #1 challenge for SMEs, especially in the Middle East, very few business owners realize that payment acceleration solutions even exist. Entrepreneurs are struggling to make payroll, finance inventory, or seize growth opportunities because they’re waiting 30, 60, even 90 days for their invoices to be paid—and they feel their hands are tied when, in reality, that’s not the case. Here’s what many don’t know: 💡 Receivables purchasing (also known as invoice factoring or payment acceleration) allows businesses to sell their unpaid invoices for immediate cash. 💡 It’s not debt—there’s no loan to repay, no interest piling up, just faster access to the money a business has already earned. 💡 It’s fully regulated—There are regulatory frameworks in the UAE. So why is awareness still so low? For years, traditional financing has dominated, and SMEs weren’t given the tools to optimize their working capital. But things are changing. For the past four years, we’ve been building innovative fintech solutions at Klaim, making it easier, faster, and more accessible than ever to accelerate payments and give businesses access to that much-needed cash flow on the revenue they’ve already earned. Curious to hear from my network: Are you aware of or have you used payment acceleration in your business?

Struggling with Cash Flow? Discover How Invoice Factoring Turns Waiting Into Working Capital Cash flow is the lifeblood of any small or medium-sized business (SMB). Yet, according to the U.S. Bank, 82% of business failures are due to cash flow problems, making it the leading cause of business closures. For many SMBs, the problem isn’t about earning revenue—it’s about waiting too long to access the cash they’ve already earned. The solution? Invoice factoring. Factoring allows businesses to convert unpaid invoices into immediate working capital. Instead of waiting weeks or months for customer payments, you get paid now, ensuring you can keep operations running smoothly. I'm surprised how few SMBs are familiar with invoice factoring, and even fewer have used it. Factoring has been around for hundreds of years. How Does Invoice Factoring Work? You sell your outstanding invoices to a factoring company. They advance you up to 80-95% of the invoice value within 24-48 hours. Once your client pays, you receive the remainder minus a small fee. Unlike Merchant Cash Advances (MCAs), factoring doesn’t bury you in high-interest repayment cycles. While Harvard Business School highlights that MCAs often come with effective APRs exceeding 100%, invoice factoring provides a transparent, scalable, and non-debt-based solution. Why Factoring is a Game-Changer for SMBs ✅ Immediate Liquidity: Cover payroll, rent, and other expenses without delays. ✅ Growth-Ready Capital: Take on larger contracts or expand without cash flow concerns. ✅ No Additional Debt: Factoring is not a loan; it’s unlocking cash you’ve already earned. As Forbes explains, invoice factoring offers a "unique blend of flexibility and speed, making it ideal for businesses facing seasonal fluctuations or long payment terms." Nerdwallet agrees: "Invoice factoring can provide immediate access to working capital to help cover a funding gap caused by slow-paying customers." And Allianz Trade says, "The main advantages [of invoice factoring] include improved cash flow and quicker access to funds." Case in Point A $10M construction company struggling with 75-day payment terms used factoring to bridge cash flow gaps. By turning unpaid invoices into cash within 2 days, they secured larger contracts and paid suppliers on time, giving them a competitive edge. A local retailer used factoring to unlock over $50,000 stuck in receivables, ensuring shelves stayed stocked during this year's Christmas seasonal surge. Don’t let cash flow delays stall your growth. Your business has earned the revenue—invoice factoring ensures you can use it now. Need help navigating cash flow? Schedule a quick call to get clarity and next steps. My appointment schedule is in the comments. #cashflow #SMBs #factoring Pictured: Sunrise on the top of Mount Monadnock in NH. Breathing! And cold!

People want to see off-market opportunities—it’s just the way it is, and I aim to be a solid partner for my clients in finding them. Here’s how I help: (1) Tracking Maturing Debt: I stay informed about properties with maturing debt. When I speak with owners facing upcoming maturities, we evaluate their options. If they’re unable or unwilling to refinance, it’s often a sign they’re considering a sale. With their permission, I connect them with trusted clients. (2) Leveraging Lender Relationships: I spend half my day speaking with banks, life companies, and other capital providers, marketing the deals I have exclusives on. At the end of these conversations, I ask if they have struggling CRE loans in their portfolio they’re looking to unload. This has led to great opportunities, and with permission, I connect them with trusted clients. By being proactive and connected, I help my clients access opportunities they wouldn’t find elsewhere. Off-market deals often require kissing a lot of frogs, but sometimes they lead to real success.

How Merchant Cash Advances Can Fuel Growth for Small Businesses Without Access to Traditional Financing: In today's fast-paced business world, access to working capital can make or break a small business. Many small business owners face obstacles when trying to secure traditional financing, whether it’s due to strict lending requirements, credit score limitations, or lack of collateral. For these entrepreneurs, merchant cash advances (MCAs) have emerged as a popular financing alternative, offering an accessible, flexible solution to help drive growth and manage cash flow effectively. What is a Merchant Cash Advance? A merchant cash advance is a type of financing where a business receives a lump sum of cash upfront in exchange for a percentage of future sales or revenue. The repayment process is directly tied to daily credit and debit card sales, which provides an added level of flexibility. Instead of a fixed monthly payment, repayments are proportional to the business's income, which can be a significant advantage for businesses with fluctuating revenue. Unlike traditional loans, merchant cash advances do not have the same rigorous credit or collateral requirements. As a result, they provide an appealing financing option for small business owners who may struggle to secure a bank loan due to a short or inconsistent credit history. The approval process is generally faster and less intensive, with minimal paperwork and requirements. How Can Merchant Cash Advances Help Small Businesses Grow? Quick Access to Capital Small businesses often need capital quickly to seize growth opportunities or cover immediate expenses. Traditional loans can take weeks or even months to process, whereas merchant cash advances can be approved and funded in a matter of days. This rapid access to cash enables business owners to capitalize on timely opportunities, such as purchasing discounted inventory, expanding operations, or investing in marketing to boost sales. Flexible Repayment Structure One of the biggest challenges for small businesses is managing cash flow, especially when revenue fluctuates. With a merchant cash advance, repayments adjust with sales volume. During high-revenue periods, payments are higher, and during slower periods, payments decrease, offering breathing room and reducing financial strain. What Types of Businesses Benefit Most from MCAs? Small businesses in sectors that experience daily credit card transactions or significant seasonal revenue are typically the best candidates for MCAs. Industries that often benefit from this type of financing include: Retail: Often needing to buy inventory ahead of seasonal peaks. Restaurants and Cafes: Faced with ongoing expenses like ingredients and payroll but can have fluctuating revenue based on time of year or events. Service-Based Businesses: Such as salons and auto repair shops that may have inconsistent customer flow.