Second in Command Podcast with Settle's COO, Olivia Micallef

LearnNovember 10, 20233 min read

In this episode of the Second in Command podcast, Cameron Herold interviews Olivia Micallef, the COO of Settle, about how Settle helps consumer and e-commerce brands scale by transparent, non-dilutive financing, and optimizing cash flow.

Settle offers financing to provide working capital for inventory and other purchases, AP Automation to efficiently manage accounts payable, and Purchase Order tools to save founders time and money by streamlining purchase-to-pay workflows. Their mission is to solve the cash flow challenges that cause 80% of small businesses to fail.

Why do some companies struggle with inventory management?

Olivia mentions consumer demand is incredibly difficult to predict especially during and post-pandemic when consumer demand was less rational. She shares some optimism that the economy may have a soft landing later this year. In the beginning of the year, brand owners were more cautious and taking a "wait and see approach", however she notices an uptick in inventory purchasing and bullish attitudes from Settle's customers heading into the second half of 2023, indicating more confidence in consumer demand.

The difference between a revenue-based and invoice-based financing model

Settle uses an invoice-based financing model where repayments are fixed based on agreed upon payment terms, providing transparency and certainty for cash outflows. This differs from revenue-based financing where repayments fluctuate based on a percentage of revenue, which can overly penalize high growth companies and be highly unpredictable.

How Settle helps consumer businesses better understand cash flow and inventory turns

In addition to honest, upfront financing with no hidden fees, Settle aims to provide data and tools to help founders run the back office better. Many consumer brand entrepreneurs come from creative backgrounds and lack expertise in finance and operations. Settle wants to give them insights so they can make informed decisions about payments, cash flow management, and negotiating better payment terms with suppliers.

The challenges of moving from a large company to a small company

Olivia discusses her career trajectory, from working at huge corporations like Barclays and PayPal to joining Settle when it was around 100 employees. She enjoys the speed of decision making and execution at a small startup, as well as having a broad set of responsibilities while building a culture. However, the stresses shift from corporate politics to more pressing concerns like funding, cash runways and having to fight harder for every customer and revenue milestone. Olivia was able to adapt quickly by being willing to roll up her sleeves and dig into the details and "truly understand the business from top to bottom".

What advice would you give your younger self?

"Be patient because it will come" - Olivia recalls being highly ambitious and being focused on achieving success rather than enjoying the experience. She also recommends choose experiences that you really enjoy that would help you learn and grow as an individual and focusing on strengths versus solely climbing a corporate ladder.

Conclusion

Settle supports consumer brands by helping them better manage their cash flow through transparent, non-dilutive financing and AP automation. With an uncertain economic climate in late 2022 but signs of recovery on the horizon, innovative fintech tools can help entrepreneurs run lean, efficient operations. To learn more about how Settle can help your business, get started for free at settle.com.

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