Ever curious about the business behind One Day, One Job and One Day, One Internship? Read this interview I did with The Startup Foundry.

I’ve never taken an Accounting class, but I do run a business, so I guess that means that I have at least a small understanding of how it all works. I may have never formally learned what “accounts receivable” means, but I certainly know it in practice. Right now there are 7 businesses that owe me money for advertising. It’s an asset, but it’s not quite as valuable as actually having the money in the bank. Luckily, this is a relatively cheap business to run, so cash flow is never an issue. For many other types of businesses, cash is essential. The 30/45/60 days that they give debtors to pay invoices can be extremely costly (in terms of risk and the time-value of money) because it limits the businesses’ ability to make short-term investments like buying products wholesale to sell retail, paying for advertising, or making payroll. The Receivables Exchange is a company based in New Orleans, LA (headquarters) and New York, NY that fixes this problem. They allow business to auction off their accounts receivable for cash. Businesses obviously have to pay a premium for the cash that they get, but it allows them to make short-term investments that should easily cover the costs of financing.
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