A few years ago I got a call from a cool green company that already had good sales, about $1 million a year. Problem was, their cash flow was “upside down” - they were trying to cover current expenses with money they wouldn’t get until later. They wanted me to help raise money to cover the gap.

At first, it seemed they were all set to receive some financing. I had a lender in mind who specialized in high-risk loans to green enterprises. All the lender needed to start the approval process was an up to date financial report. But as I started interviewing the principles, I learned that the company’s financial books were several months behind. Sadly, even weeks and months later, this situation persisted, making it impossible for the firm to make effective requests for money from anyone other than family members.

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