Expanding Company Proves There’s Value In Business Services Firms

No matter what condition exists for the overall economy, new businesses are started every day. Providing a way to help so many entrepreneurs is the business model for Taulia, which was incorporated in 2009. The company recently raised $8,500,000 of funding from both new investors and existing ones that participated in an earlier round.

Taulia offers a way for businesses to obtain discounts on their purchases. The company facilitates this my obtaining price reductions with suppliers. The result is suppliers taking lower amounts for earlier payment. This maintains their cash flow without having to rely upon bank lending. Meanwhile, resellers obtain merchandise at discounted cost in order to improve their profit margins.

Traditional sources for borrowing are more difficult and costly to arrange in a sluggish economy. Even when external financing is readily available, Taulia provides a simpler internal mechanism for raising money.

Traditionally, suppliers must wait up to about 60 days on average for payment. That length of time from product shipment to receiving payment forces a company to require capital reserves in order to pay employees and other overhead expenses.

Taulia has signed up several big name companies, including Pfizer and Coca-Cola. It is adding about one new Fortune 500 company per month and incurring multiple projects monthly for its clients.

Taulia is based in San Francisco and has 40 employees. Total funding to date is $11,700,000 after the second round in 2011 and a first round in December 2010. The company wants to expand into Europe with plans for an office in Germany. Taulia also expects to add positions for its engineering staff.