Control of non-payment: metrics, warning signs and decisions
Control of non-payment begins long before a client actually stops paying. In an SME, the real risk is not just “having delinquent clients,” but accumulating overdue balances that strain cash flow, distort margin analysis, and force the financing of working capital with debt. Therefore, the first technical tool is the aging analysis of balances: organizing […]
Cash cycle: how to reduce days sales outstanding and days of inventory without sacrificing sales
The cash cycle is the time that passes from when you pay to produce or buy until you collect the sale. Reducing it frees up liquidity without seeking financing. The usual mistake is trying to improve cash flow by squeezing customers or cutting stock without a method, which can damage sales, service or margin. The […]
Seed-stage valuation, realistic methods when the track record doesn’t dictate yet
Valuing a seed-stage company is not about “guessing” what it is worth, but about agreeing on a reasonable entry price today, knowing that the real value will be demonstrated through the milestones of the next 12 to 18 months. The problem is clear: there is no stable income statement yet, the product may still be […]
Veto rights, drag-along and tag-along: the three clauses that define a seed-stage shareholders’ agreement
In a seed-stage round, the shareholders’ agreement is where much of the future relationship is decided, even though the company is small. The investor’s objective is usually to protect their investment and ensure clear exit rules. The founding team’s objective is to preserve operational agility and avoid being blocked on day-to-day decisions. Good negotiation does […]
Information rights: what reporting is reasonable to promise at seed
In a seed stage investment, information rights are the balance point between two legitimate needs. The investor needs visibility to protect their investment and provide informed guidance. The founding team needs focus and speed to execute. Promising “large company” reporting when you’re still building product, market, and processes ends up generating friction, unintentional breaches, and, […]
Letter of intent with terms: which clauses really matter and which are just noise
A term sheet is the document that structures the negotiation of an investment before entering into full legal drafting. It is not usually the final contract, but it sets the ground: price, percentages, rights, and conditions. In the seed phase, its value lies in avoiding misunderstandings and saving time. Its danger also lies there: if […]
Customer credit policy, limits, internal scoring, and temporary alerts
A customer credit policy is the set of rules that decides who you sell to on credit terms, how much you finance them, and what signals trigger control measures before payment default appears. In an SME, trade credit is often the largest involuntary “investment”: the more you sell on credit, the more cash is tied […]
Sensitivity analysis and scenarios, prepare your plan B
Sensitivity analysis and scenarios turn the budget into a decision-making tool, not a static document. Its objective is to anticipate how your result behaves if key variables change and, from there, define realistic contingency plans that protect margin and treasury. In an SME, with limited resources, the priority is to identify a few levers that […]
How to Finance Your Startup: The Great Opportunities in Galicia
You started your startup and had the good fortune of being in Galicia, where you have one of the greatest structural advantages of the Spanish ecosystem. In Galicia, you don’t have to chase isolated subsidies; the essential starting point is first to get to know IGAPE’s offerings. It is mandatory for every startup to have […]
Practical taxation for self-employed and limited companies, VAT, personal income tax and corporate tax without surprises
In an SME or a professional self-employed individual, the difference between operating with peace of mind or suffering cash flow tensions usually lies in three prior decisions. Defining a fiscal calendar integrated into the budget, establishing operational rules for invoicing and expenses, and assigning clear responsibilities with periodic reviews. With this framework, VAT, personal income […]
