For Blind Squirrel Entertainment, using factoring to solve their cash flow dilemmas was not a short-sighted decision. Founded in 2010 by CEO Brad Hendricks, a veteran in the gaming industry, Blind Squirrel specializes in development work for larger gaming developers and publishers such as Electronic Arts, 2K Games, Disney, and Warner Brothers. Since its inception the company has offered millions of avid gamers around the world memorable gaming experiences.
What the Business Needed
A better way to manage cash flow
As a development studio in the milestone-driven gaming industry, Blind Squirrel often faced challenges maintaining consistent cash flow to cover payroll. “Our business is labor intensive with semi-monthly payroll, but development milestones usually run four to six weeks creating an inherent cash flow problem” said Ken Dopher, CFO of Blind Squirrel.
Prior to working with Bluevine, the company often had to juggle payables, which delayed payments to its vendors. “As a small business without the balance sheet to support a traditional banking line of credit, our ability to borrow was limited.” Shelley Lovejoy, Blind Squirrel’s Controller, said.
How Bluevine Helped
Streamlined invoice financing
With prior experience using invoice factoring, Dopher knew it was an option that could work for Blind Squirrel, but finding a factoring company that understood the game industry and offered online access and tools was important. “Bluevine’s streamlined dashboard and dedicated account management team is light years ahead of my last encounter with factoring,” Dopher said “Their online platform and automated back-end has made working with them much easier and more enjoyable.”
After a Google search and comparison of several possible factoring vendors, Blind Squirrel found Bluevine was best able to solve its cash flow dilemmas, which was especially useful during periods of significant growth. “Over the past 12 months our headcount increased from around 90 to almost 140, and that would not have been possible without our relationship with Bluevine,” Dopher said. Once onboarded with Bluevine, Blind Squirrel worked with a dedicated account manager who guided them at every step of the way. “Bluevine’s cost effective factoring structure gave us flexibility to quickly factor only when needed. Over the course of a year with Bluevine the cost to Blind Squirrel was roughly equivalent to offering our customers 2/10 terms. Our Bluevine account manager and her supporting team always came through,” said Lovejoy.
About Growing Business With Bluevine
Our clients grow with us. They use Bluevine financing to address everyday funding needs and to pursue opportunities to take their business to the next level. This series aims to highlight the stories of small and medium-sized businesses that have grown and continue to grow with Bluevine.