Account Receivable Financing

We were recently honoured to be invited as a guest on Ariel from Appfigures podcast. Our CEO, Martin Macmillan, had a great chat with Ariel about Turning Revenue into Growth.

When it comes to user acquisition (UA) — and any digital marketing for that matter — Facebook is indispensable. The social media giant is one half of the duopoly. Paired with Google, eMarketer estimates that Facebook will remain dominant in the UK digital advertising market,” with a forecasted share of 63.4% compared to 62.7% last year.” Facebook rules the UA roost, but app and game developers regularly max out their credit lines with Facebook. Why? Because when you find something that works, you stick with it. 

The COVID-19 related increase in app downloads and engagement bodes well for app owners and the larger app economy. User acquisition (UA) costs are low and interest is up. But if you don’t have the financial wherewithal to ride the wave and compete for user attention, the challenge of acquiring (and keeping) users at scale may seem insurmountable. You need cash now — before your flood of interest and potential audience slows to a trickle — but funding is hard to come by during uncertain times. 

As founders get smarter about how they fund their growth, there is an increasing focus on non-dilutive sources of capital as alternatives to equity financing from VCs. As more data points become available, new options such as accounts receivable (AR) financing and revenue-based lending are coming on stream, offering founders and CFOs a wider range of options than ever before.

As the concept of Capital Efficiency becomes better understood in earlier stage companies, savvy founders and their finance teams are using accounts receivable (AR) financing as an important tool in their financing armory, helping reduce the impediment of payment delays of up to 60+ days from the app stores and ad networks.

In this post, we cover what is AR financing and the two simple questions you need to ask yourself to see if AR financing is right for you.